Oracle's cloud strategy: Does it trump Fusion?

Oracle's cloud strategy: Does it trump Fusion?

Summary: Oracle's Fusion storyline is still muddled and may wind up taking a back seat. Why would you go through a Fusion implementation where Oracle's apps are all in the cloud?


SAN FRANCISCO---Oracle's move to offer its various applications in the cloud along with infrastructure and platform as a service could ultimately wind up usurping years of talking about Fusion.

Fusion, a modern application stack designed to give customers a migration path from older implementations Oracle acquired, has been touted for years. The problem: The Fusion storyline is still muddled. For instance, Gurudatt Mudlapur, head of the Oracle practice at Tech Mahindra, said the uptake in Fusion applications hasn't been rapid. He noted that Fusion isn't "functionally rich" yet and customers still have questions.

Here's a key question: If you're an on-premise Oracle customer and loyal to the software stack why would you deal with an on-premise Fusion implementation when you could simply use the company's cloud stack?

At Oracle's OpenWorld conference, the Fusion talk is clearly taking a back seat to the cloud pitch. And why not? The cloud is simply a better story to tell.

In the years to come, it will be interesting to see how Fusion develops, but don't be surprised if it becomes more of a footnote for a customer base that may stick with Oracle but go the cloud computing route. Oracle's master plan is to offer anything and everything customers will buy so the commitment to Fusion will remain.

And why not? There will be enterprise tech buyers who prefer to pay for software up front, but I'll wager that the Fusion story is only going to become harder to tell as Oracle makes its cloud turn.

Earlier: Oracle eyes OpenStack API integration, new cloud services

Topics: Enterprise Software, Cloud, Oracle

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to join the discussion
  • Oracle

    May I just add the fact that Sales, ERP and HCM Cloud are actually Fusion Applications. Personally I believe that big enterprises will go for on-premise for obvious reasons such as data volume or number of users. Private Cloud is another option.
    • Too bad Oracle doesn't agree

      If Oracle had its way there wouldn't be a on premise version of their software.
  • Wrong question

    Feels like the writer doesn't understand Fusion which comes in two flavor: on-premise and in the cloud. In other words, whatever Fusion application you want (say Core HR or Finance) you have the choice to install it on your own servers within your corporate walls, OR ask Oracle to host it for you. So asking why customers would choose Oracle Fusion when they can use Oracle cloud products is nonsense.

    But, the real question is the one that the Oracle partner mentioned in the article: why are Oracle customers so reluctant to adopt Fusion? Sometimes the simpler explanation is the right one: because they found better and cheaper products somewhere else. Workday and Salesforce are eating Oracle's lunch with a steady list of defecting customers growing month after month.
  • Fusion or Confusion?

    Larry, you may not understand Oracle Fusion Applications completely. Fusion Apps *are* primarily deployed in the Cloud (private or public). One of the reasons why they're not as popular as they should be is because they lack some functionality with respect to some of the competition. Fusion Apps and the Cloud are not mutually exclusive, rather they're complementary.