---
title: Oracle Grows, and Oracle ERP Cloud is Gartner Leader
description: Gartner names Oracle Cloud ERP Magic Quadrant Leader; Oracle FY 2017 Results Jump.
---

[Beacon Application Services Blog ](https://www.beaconservices.com/blog)

# [Oracle Grows, and Oracle ERP Cloud is Gartner Leader](https://www.beaconservices.com/blog/oracle-erp-cloud-is-gartner-leader)

 Written by [Dan Maude](https://www.beaconservices.com/blog/author/dan-maude) | Jun 23, 2017 6:31:08 PM

### **Oracle Financial Results Impressive**

Twelve months ago Oracle changed its compensation plans for North American Sales and Marketing folks, eliminating commissions for licenses of on-premises software. EBS, PeopleSoft, JDE and other "on-prem" software are still available (Beacon is now an [authorized PeopleSoft reseller](https://www.beaconservices.com/blog/beacon-services-oracle-mda).) but the Oracle field sales and marketing teams became all cloud, all the time. Nothing else counts.

Initial grumblings - customers, partners and within Oracle - died away pretty quickly, while the wisdom of a total focus on SaaS application sales was sometimes questioned: Is Oracle leaving a viable arrow out of its quiver? But the marching orders were clear.

The announcement of [Oracle 2017 FY results](http://investor.oracle.com/financial-news/financial-news-details/2017/Q4-FY17-GAAP-EPS-UP-15-TO-076-and-NON-GAAP-EPS-UP-10-TO-089/default.aspx) earlier this week would seem to validate the Cloud strategy (and the acquisition of NetSuite didn't hurt). Q4 SaaS (Software as a Service) cloud revenues were up 67% to $964 million, and total cloud revenues were up 58% to $1.4 billion. More surprising (to me, at least) was Cloud plus on-premise software revenues were up 5% to $8.9 billion for the quarter, and up 4% for the year.  As Oracle still gets about 70% of its total revenue from on-premises sources, a few minutes with a pencil and paper shows that non-cloud revenue was nearly flat, perhaps down 1%. 

SaaS revenues are growing fast, and on-premises revenue is stable, despite the nearly complete shift of sales and marketing resources to SaaS. This is a sweet spot for Oracle overall, as they are gaining cloud market share and maintaining on-premises market share. 

### **HCM Cloud Market Growing**

The HCM Cloud marketplace is growing with no clear and generally accepted leader in the HCM space.  In fact, Cloud adoption statistics are, at best, inconsistent across sources and ill-defined in terms of definition (i.e. what are the components of “core HR”?).  The following table represents the three major top-tier vendors, depicting number of units sold and implies a growing commitment in the marketplace to HCM Cloud applications. 

| **Vendor** | **Number of Core HR Customers in the Cloud** | **Source** |
| --- | --- | --- |
| [Oracle](https://www.appsruntheworld.com/hcm-top-500-software-vendors/oracle) | 1600 | Oracle HCM Cloud Analyst Event, February 2017 |
| [SAP](https://www.appsruntheworld.com/hcm-top-500-software-vendors/sap) | 1580 | SAP SuccessFactors Analyst Briefing, March 2017 |
| [Workday](https://www.appsruntheworld.com/hcm-top-500-software-vendors/workday) | 1528 | 4QFY17 Earnings Call, February 2017 |

The above market penetration represents units/organization sold HCM, with approximately 75% currently in production.   

 

### **Cloud ERP Market Emerging: Gartner Releases Magic Quadrant for Cloud "Core Financials"**

Also this week, Gartner released its latest ["Magic Quadrant" for Cloud ERP vendors.](https://go.oracle.com/LP=54537/) Nearly every vendor on the chart issued a press release on this report, but Oracle ERP Cloud is positioned as the leader in the market. And while all [the usual caveats apply](http://www.infoworld.com/article/3202685/it-management/benchmarks-analyst-reports-and-other-pretenses.html) to analyst reports, Beacon knows Mr. Van Decker well; he was our primary Meta Group analyst many, many years ago. (Hi, John). This is a comprehensive discussion report and worth the read.

Magic Quadrant 

**Figure 1. **Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises

 

 (Source; Gartner, June 2017)

ERP is a larger, and more complex market than HCM. Most success stories to-date are in small and medium companies, and geography and (especially) industry and company size are very important considerations. Beacon, for example, provides most of its services in financial services; to banks, insurance companies and other capital institutions. Regulatory requirements are heavy, and most of our consulting customers are also very large - by definition, there are no small insurance companies. Beacon has been an Oracle ERP Cloud customer for some years, (NetSuite, too). For Beacon's customer market - large financial services companies  - size, cost and reality still play an important roles in our customers implementation strategy, although most all planning is now made with a cloud-eventually presumption . Cloud ERP software has [matured over the last few years](https://www.beaconservices.com/cloud-erp-the-future-s-coming-but-it-s-not-here-yet), and is beginning to gain traction, especially in the mid-market. 

 

 

 

[View full post](https://www.beaconservices.com/blog/oracle-erp-cloud-is-gartner-leader)

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