Consider the 449 companies in the S&P 500 index that were publicly listed from 2003 through 2012. During that period those companies used 54% of their earnings—a total of $2.4 trillion—to buy back their own stock, almost all through purchases on the open market. Dividends absorbed an additional 37% of their earnings. That left very little for investments in productive capabilities or higher incomes for employees. https://hbr.org/2014/09/profits-without-prosperity
The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises 502 common stocks issued by 500 large-cap companies and traded on American stock exchanges, and covers about 75 percent of the American equity market by capitalization. The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices. Although the index is called the S&P "500", the index contains 502 stocks because the S&P decided to include both of the two different classes of shares that were created from the stock split by Google in March 2014 and Discovery Communications in July 2014, and will contain 505 stocks in September 2015.
According to Yale professor Richard N. Foster, corporations in the S&P 500 in 1958 lasted in the index for 61 years, on average. Today, it stands at just 18 years based on seven-year rolling averages. During the decade ended 2011, about half of the companies in S&P 500 were replaced. At the current churn rate, 75% of the S&P 500 will be replaced by 2027.
Companies in the S&P 500 are replaced for a variety of reasons, including decline in market value (for example, RadioShack) or acquisition by another company. But many of the changes are due to “creative destruction,” in which companies that once dominated industries have seen their profits fall and their dominance vanish as rivals employed new technologies that disrupted the old way of doing business.
85% of all new applications architected for SaaS. Source: IDC – Worldwide Software as a Service 2010-2014 forecast.
This trend was derived from Forrester Research data on current global IT spending and other estimates of the size of the SaaS and PaaS+IaaS markets.
Need more talking points for this slide.
In 2015 software testing budgets will be on the rise, especially in the sectors of energy & utilities (E&U) and transportation, these domains will most likely be spending 27 percent and 31 percent of their budgets on QA and testing. It has also been observed that most of the organizations are allocating more than 40 percent of their IT budget towards quality assurance and software testing domains.
Testing budget allocated for new software development initiatives is now slowly overtaking budgets that are usually allocated for software maintenance projects, which is a positive sign. Consumer products, retail, financial services and transportation sector are swiftly advancing towards new IT development initiatives.
Not all software applications can be hosted in the cloud environment today, e.g. the largest enterprise systems. These enterprise systems require robust integration testing would have to be hosted in a separate infrastructure test environments. However, these limitations are being addressed by cloud service providers and even very large systems will be tested using a cloud platform by 2025. Key technologies for this are containers (e.g. Docker) and microservices.
Source: IDC Worldwide Storage for Public and Private Cloud 2014-2018 Forecast; November 2014 IDC Worldwide Enterprise Storage System Forecast, 2015-2019; May 2015
Note, IDC includes a substantial amount of “Other” storage in the Enterprise Storage System Forecast and notes that the majority of this is from ODMs for use by Hyperscale Internet Service Providers. Since this is included in the Public Cloud potion, it is effectively double counted and needs to be removed in the chart (which it is).
IDC also has a category for “Private Cloud On-Premise” in the Cloud storage forecast which is effectively included in the Enterprise Storage System forecast, making it also double counted.
Double counting has been removed in the chart by using the Cloud Forecast for Public and Private Clouds, not counting any of the “Other/ODM” data from the Enterprise Storage Report and subtracting the Private-Cloud On-Premise number from the remaining Enterprise Storage number to get “Traditional IT”
Other pertinent information:
Total storage capacity counted this way climbs from 178 EB today to 4800 EB by 2025, averaging 39% growth per year Total storage value counted this way climbs from $50B to $94B by 2025, averaging 6.5% growth per year
“On-Premise” storage, the combination of Traditional IT and Private Cloud (On-Prem) grows from 75EB in 2015 to 1100EB by 2025 for a 31% CAGR “On-Premise Storage Value” grows from $35B to $45B for a 2.5% CAGR “Remote Storage Value” only passes “On-Premise Storage Value” in 2025 where both are over $45B in value.
Historically, established storage vendors like EMC or NetApp have enjoyed gross margins of about 55%. Hard disk drive (HDD) manufacturers (Seagate, Western Digital) typically achieve 30% margins. Much of EMC and NetApp margins come from the high-price resale of components, including HDDs. The availability of public cloud storage will put tremendous pressure on such margins, as it becomes easy for large buyers to procure the components and software directly. (Also possible cost advantage for Suite cloud providers over niche cloud providers.)
I want to share some startling information about exploited vulnerabilities, and how moving to the Oracle Cloud can actually help reduce your risk of a data breach.
Common Vulnerability and Exploits or CVEs, things like buffer overruns, integer overflow, format string vulnerability , or access control issues, are all vulnerabilities that software developers, most oftentimes unknowingly code into software. We’ve seen a startling 53% increase in published vulnerabilities from 2013 to 2014 (from 5191 to 7946). This means that there are 53% more, or nearly 8,000 vulnerabilities on the open market for cyber criminals to exploit.
* According to the Verizon Data Breach Investigations Report, 2015, 99.9% of the exploited vulnerabilities (in 2014) were compromised more than a year after the CVE was published. CVEs are made publicly available, and the cybercriminals know this, so they search them out, and learn to exploit them...attacking organizations accordingly As a stunning example, there were more than 90 companies breached via an unpatched system where the patch was actually made available in 7 years prior (in 2007). And unfortunately, organizations are taking longer than they should to patch (70% take more than 3 months), and the longer they take, the longer the window a hacker has to exploit it.
The reason it takes companies so long to patch is because it's a big challenge to roll out patches...and actually Oracle is making this easier. And quite frankly, this problem will essentially go away when our customers move to the cloud where we will manage the patches for them.
Because Oracle knows Oracle, we can efficiently deploy these critical patch updates for you in the cloud. Saving the headaches of doing this yourself, but more importantly reducing the threat window.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Earnings Continue To Grow Through Cost Cutting
Revenue Growth Is Stalled Across The Economy
S&P 500 Sales per Share
S&P 500 Earnings per Share
Customer Satisfaction and Stock Price Correlation
Source: Dow Jones Inc.
2008 2009 2010 2011 2012 2013 2014 2015
Estimated 5.1% Spending Decline In 2015 Alone
Worldwide IT Spending Decelerated Over Last Five Years
2011 2012 2013 2014 2015
5-Year Total IT Spend Trends
Rev (UST) Y/Y Growth
Total IT = SW, HW,
Source: Independent Analyst Estimates
* Public cloud only, cloud above includes SaaS/PaaS/IaaS. Minor calculation differences can be due to rounding.
Global Y/Y Growth, All Markets, 2016
Cloud Software WW
On Premise Software WW
Total Software Market WW
Cloud Opportunity for LAD
1.3% LAD Total IT Spending
Market Growth Slow
LAD Public Cloud Adoption
Source: Gartner IT Spend for Enterprise Forecast, 2016Q1
Source: IMF, World Economic
Outlook Database, April 2016.
of LAD Enterprises Deployed a
Cloud Service by end of 2015
Over 70% of LAD Enterprises Believe
Cloud Services Make Organization More
Agile. This is more than any other region
rank Country $ trillion 5 yr CAGR
1 United States 17.9 4.0%
2 China 11.0 8.0%
3 Japan 4.1 3.1%
4 Germany 3.4 3.4%
5 UK 2.8 2.7%
6 France 2.4 3.0%
7 India 2.1 9.7%
8 Italy 1.8 2.5%
9 Brazil 1.8 -0.3%
10 Canada 1.6 2.3%
LAD Public Cloud Market
Source: Gartner Geographic Differences Among Buyers, 2016.
Numbers rounded from chart.
Source: IDC Public Cloud Forecast, May 2016.
Stagnant Overall Growth Vibrant Cloud Growthbut
By 2025 80% of Production Apps Will Be in the Cloud
• Public Cloud SaaS is 24% of the
Applications market today.
• 85% of all new applications today are
architected for SaaS.
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PaaS & IaaS
Total Public & Private Cloud Markets (US$ billions)
Full Suite Requires 100’s of Applications:
• Customer Experience Suite
• Human Capital Management Suite
• Enterprise Resource Planning Suite
• Enterprise Performance Management Suite
• Supply Chain Management Suite
• Data Suite
Shared, extensible schemas across suites significantly
reduce the cost and complexity of integration.
SaaS Market In 2025
By 2025 Two Suite Providers Will Have 80% of the Saas Apps Market
• One of the least managed and governed areas in IT
• Dev/Test suites offering rich standards-based
frameworks and languages will dominate
• Dev/Test suites include:
– Integrated development environment
– Support popular languages
– Mobile dev tools
– SOA dev tools
– Database dev tools
– Integration dev tools
– And much more ….
• 30% to 40% of IT spending is Dev/Test, making it an
attractive Cloud workload for cost savings.
100% Of New Dev/Test Will Be Cloud In 2025
• More data is already stored in clouds than in
traditional storage systems.
• 10’s of billions of IOT devices will generate
massive amounts of new enterprise data
using modern cloud-based applications.
• Public cloud storage capacity will be sourced
by service providers directly from component
manufacturers, not existing storage vendors. -
PBytes of Storage Installed
By 2025 Virtually All Enterprise Data Will Be Stored In Clouds
By 2025 Enterprise Clouds Will Be The Most Secure IT Environments.
Oracle Is There Today.
OF ORGANIZATIONS TAKE
3 MONTHS+ TO PATCH
Source: Verizon Data Breach Investigations Report, 2015; IOUG Data Security Survey, 2014
OF 2014 EXPLOITS HAD PATCH
AVAILABLE FOR MORE THAN ONE YEAR
• Oracle uses its full security IP to run its Cloud
• Full encryption by default
• Implement latest patches rapidly across entire infrastructure
• More secure than anyone
Why Cloud Computing Oracle Will Lead
• Lowest cost
• Least complex
• Most reliable
• Best security
• Rapid innovation
• We will lead decade long
transition to the cloud
• Best of Breed SaaS Suite
built on Standards
• Platform designed
• We are in a class alone
• Only IT company capable of
coexisting on-prem or
• EXCITING NEW
Complete: One Cloud for Your Entire Business
Social User Experience
ANNOUNCING – NOW
AVAILABLE IN PORTUGUESE