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4 enterprise developer trends that will shape 2021

Technology has dramatically changed over the last decade, and so has how we build and deliver enterprise software.

Ten years ago, “modern computing” was to rely on teams of network admins managing data centers, running one application per server, deploying monolithic services, through waterfall, manual releases managed by QA and release managers.

Today, we have multi and hybrid clouds, serverless services, in continuous integration, running infrastructure-as-code.

SaaS has grown from a nascent 2% of the $450B enterprise software market in 2009, to 23% in 2020 and crossed $100B in revenue. PaaS and IaaS revenue represent another $50B in revenue, expecting to double to $100B by 2022.

With 77% of the enterprise software market — over $350B in annual revenue — still on legacy and on-premise systems, modern SaaS, PaaS and IaaS eating at the legacy market alone can grow the market 3x-4x over the next decade.

As the shift to cloud accelerates across the platform and infrastructure layers, here are four trends starting to emerge that will change how we develop and deliver enterprise software for the next decade.

1. The move to “everything as code”

Companies are building more dynamic, multiplatform, complex infrastructures than ever. We see the “-aaS” of the application, data, runtime and virtualization layers. Modern architectures are forcing extensibility to work with any number of mixed and matched services.

In surprise choice, Zoom hitches wagon to Oracle for growing infrastructure needs

With the company growing in leaps and bounds, Zoom went shopping for a cloud infrastructure vendor to help it with its growing scale problem. In a surprising choice, the company went with Oracle Cloud Infrastructure.

Zoom has become the go-to video conferencing service as much of the world has shut down due to the pandemic, and life needs to go on somehow. It has gone on via video conferencing with Zoom growing from 200 million active users in February to 300 million in March. That kind of growth puts a wee bit of pressure on your infrastructure, and Zoom clearly needed to beef up its game.

What’s surprising is that it chose Oracle, a company whose infrastructure market share registers as a strong niche player in Synergy Research’s latest survey in February. It is well behind market leaders including Amazon, Microsoft, Google, and even IBM (and that’s saying something).

Brent Leary, who is founder at CRM Essentials, says he sees this as a move to show that Zoom can move beyond the SMB market to power enterprise customers, no matter what they demand.

“I think Zoom went with Oracle because they are proven in the enterprise in terms of mission critical apps built on Oracle databases running on Oracle hardware in the cloud. Zoom needs to prove to enterprises that they are able to handle scale and data security needed to beyond what SMBs typically require,” Leary told TechCrunch.

In addition, Leary speculated that Oracle might have given Zoom a good deal to get a hot company into the fold and beat rivals like Amazon and Microsoft.

Others have speculated that it might have to do with keeping business away from a potential rival given that Amazon with Chime, Google with Hangouts and Microsoft with Teams all have competing products. However, none of them have become synonymous with online meetings as Zoom has during this crisis.

Zoom went public last year and has become the darling of the video conference market since in spite of a set of security issues that have developed as the company scaled, which they have been working to address.

The stock market is apparently not impressed with the choice. As we went to publish, the stock was down 3.38% or $5.56.

Tesla’s newest board member has a long stance against short selling

Tesla has added Hiromichi Mizuno as a new member to its board of directors and audit committee — the former chief investment officer of Japan’s $1.5 trillion pension fund and a longtime opponent of common market practices like short selling.

With Mizuno’s appointment the Tesla board now has 10 members, including Oracle founder, chairman and CTO Larry Ellison and Walgreens executive Kathleen Wilson-Thompson. Mizuno will also sit on the board’s audit committee.

Hiro has a long career in finance and investment that included a stint as executive managing director and chief investment officer of Japan’s Government Pension Investment Fund (GPIF), the largest in the world with about $1.5 trillion in assets under management. Hiro left his position in late March.

During his time at GPIF, Hiro promoted environmental, social and governance practices. He was also known for challenging short selling — a practice that has plagued Tesla and its CEO Elon Musk . During his tenure, the GPIF suspended stock lending, which caught many by surprise. Hiro’s opposition to short selling is at odds with some market purists who believe the investment strategy — which speculates on the decline in a stock — actually provides greater price transparency. Hiro has said in previous interviews with media outlets like the Financial Times that it conflicts with his long-term perspective.

Hiro is on a number of government advisory boards, including the board of the PRI, the World Economic Forum’s Global Future Council and the Japanese government’s strategic fund integrated advisory board.

He also challenged many established market practices, including short-selling, to promote long-term value creation by corporations.

As a director, Mizuno will get an initial award of an option to purchase 2,778 shares of Tesla’s common stock, vesting and exercisable on June 18, 2020. For serving on the audit committee, he will get an initial award of an option to purchase 4,000 shares of Tesla’s common stock, vesting in 12 equal monthly tranches assuming continued service on each vesting date, according to a regulator filing Thursday.

Tesla’s board had sat unchanged for years until late 2018 when Ellison and Wilson-Thompson joined the board as independent directors as part of a settlement with U.S. securities regulators over CEO Elon Musk’s infamous tweets about taking the company private. Under the settlement, Tesla agreed to add two independent directors and Musk would step down as chairman for three years. Robyn Denholm, the former chief operations officer of Telstra Corporation Limited, a telecommunications company, was named chairman in November 2018.

In April 2019, the company said it would cut its board down by more than one-third, to seven directors, by 2020, a move that included the loss of some of Musk’s  early advisers and allies.

Longtime board members Brad Buss and Linda Johnson Rice, who joined two years ago as an independent director, did not seek re-election in 2019 and their terms expired at the company’s annual shareholder meeting in June. The board said in the proxy filing at the time that it didn’t plan to fill their seats.

Antonio Gracias,  whose term ends in 2020, and venture capitalist Steve Jurvetson will leave the board in 2020, according to a regulatory filing last year.