IBM, Oracle Tout Cloud Customer Wins

Scott Ferguson
6/27/2017

IBM and Oracle are looking to rival each other in the cloud market by announcing significant customer agreements within a few days of one another.

On June 26, Oracle announced that it has signed an agreement with Bank of America to supply the bank with its cloud-based enterprise resource planning (ERP) and other financial applications.

The applications will run on-premises within Bank of America, but use Oracle's hardware, according to CNBC. Both the ERP and financial-planning apps will be used within the bank's international general ledger, as well as its broker-dealer system.

"We anticipate 80 percent of our technology workloads will be delivered on the cloud within the next few years, and this solution for general ledger reflects our evolving strategy and the improvements in cloud security and economics," Cathy Bessant, chief operations and technology officer, noted in a statement.


(Source: Geralt via Pixabay)

(Source: Geralt via Pixabay)

CNBC also reported that the Oracle ERP apps are displacing some SAP workloads used by Bank of America.

Not to be outdone, IBM announced a deal with America Airlines on June 27 that will see the airlines move several critical applications, including its main, customer-facing website -- AA.com -- along with mobile applications, check-in kiosks and other workloads to Big Blue's public cloud.

Although customer-facing parts will run on IBM's public cloud, American will still use its on-premises systems and other third-party software to maintain backend connectivity.

In addition, the two companies plan to develop cloud-native applications, and rewrite older apps using IBM's platform-as-a-service (PaaS) offering to incorporate more developer tools such as micro-services, Agile and DevOps.


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"We also wanted a partner that would offer us the agility to innovate at the organizational and process levels and have deep industry expertise with security at its core," Daniel Henry, American's vice president for Customer Technology and Enterprise Architecture, wrote in a statement on Tuesday.

IBM and Oracle have each tried to make their way in the public cloud market even as the two companies struggle with legacy offerings, including on-premises software requiring long-term contracts, and customer bases looking for more flexible offerings that are in the cloud.

In Gartner's recently released Magic Quadrant for infrastructure-as-a-service (IaaS), IBM and Oracle are each listed in the leadership category, but remain far behind Amazon Web Services when it comes to execution. Microsoft and Google also outranked Oracle and IBM in the report.

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— Scott Ferguson, Editor, Enterprise Cloud News. Follow him on Twitter @sferguson_LR.

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JohnMason
JohnMason
7/7/2017 | 3:29:48 AM
Re: Says it all
Maybe Microsoft could buy IBM to thank it for helping MS so much in its early days.
kq4ym
kq4ym
7/6/2017 | 11:31:37 AM
Re: Says it all
It will be interesting to watch IBM and Oracle as they not only battle one another but to see if they will try to play catch up with Google and Microsoft or play for a more niche role in the cloud service arena.
JohnMason
JohnMason
6/30/2017 | 4:30:19 PM
Says it all
This says it all: "We anticipate 80 percent of our technology workloads will be delivered on the cloud within the next few years." Maybe sooner!
Joe Stanganelli
Joe Stanganelli
6/29/2017 | 12:04:44 PM
Re: ERP
> SAP and Oracle seemed to be locked in as major rivals

Sounds like poetic irony, no? ;)
Scott_Ferguson
Scott_Ferguson
6/27/2017 | 5:06:31 PM
Re: ERP
@danielcawrey: And Oracle has really doubled down on ERP, especially in the cloud. It seems what BoA wanted out of the deal was some type of hybrid solution, but Oracle manages the heavy lifting. 
danielcawrey
danielcawrey
6/27/2017 | 3:32:50 PM
ERP
For big companies, Enterprise Resource Planning, or ERP, is a big component to making all the gears move. SAP and Oracle seemed to be locked in as major rivals in the ERP space, and I find it interesting they defined these products as cloud because the servers are on-premise. 

However, when it comes to organizations like banks, on-premise is the only way to go. 
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