Oracle Corp has predicted a sharp drop in the traditional IT spending of businesses across the globe over the next decade, making way for cloud services and leaving more room for innovation than hardware and software maintenance. The forecast comes even as Oracle Corp has acquired a US-based cloud security start-up founded by two techies of Indian origin, Rohit Gupta and Ganesh Kirti.
“By 2025, 80 percent of IT budgets will be spent on cloud, and not on traditional IT. Almost all of the new applications will be on SaaS (Software as a Service) applications by 2025,” Oracle Corp CEO Mark V. Hurd told reporters here. “The spending on cloud infrastructure will continue to accelerate. It will not again be linear. It will be geometric in terms of the speed by which it will move,” Hurd said at the Oracle OpenWorld 2016 Conference here.