While Infor and others may be targeting the region for market share, Oracle has no intention of reliquishing its grip.
Here, Arun Khehar, the senior vice president for applications business, Ecemea, for Oracle exclusively talks to The National about how it intends to stay ahead of the competition.
Does Oracle think its customers in the Middle East are tiring of the company's dominance in the region? How does Oracle feel it serves its customers - how is the feedback generally?
At Oracle, we are on a mission to connect people and business to information. Over the past 25 years, our customers in the Middle East have believed in our approach and ability to deliver innovative solutions that have helped them shape their respective industries and change the way the world works and plays.
Our consistent growth over the past two decades in the Middle East is driven by the success of our customers and this growth has now been further enhanced by the rapid adoption of our cloud solutions. We have built something our competitors can't, so our customers are able to do things they've never been able to do before.
We give every customer the ability to design their own map to cloud success - not just one map, not just our map, but almost limitless paths and roadways they can draw, then shape, then redraw again in new, powerful ways as their businesses grow. We built a cloud future that's less about restrictions and more about re-imagining people, processes, and progress.
Our SaaS [software-as-a-service] sales have experienced triple-digit growth in the UAE. We have made significant investments to ramp up mid-market SaaS sales business in the Middle East and this commitment to the region has enabled us to currently employ more than 140 direct sales staff that includes Oracle's direct sales team for applications and database.
The UAE and the Middle East are top priority markets for Oracle and in January 2016, Oracle's chief executive, Mark Hurd announced plans to establish a state of the art data centre in Abu Dhabi. The data centre will feature Oracle's Engineered Systems - which combine highly tuned hardware, software, and networking for top performance - to support the increasing demands of area customers who tap Oracle's wide range of cloud services.
By locating a data centre in the UAE, we will be better able to manage service levels and respond to local customers who, for a variety of reasons including data governance requirements, need their data to be in close geographic proximity.
How does Oracle add value to its cloud offerings and services in the Middle East?
Oracle provides complete solutions that integrate all digital technologies: cloud, mobile, social, big data, Internet of Things with our applications, middleware, database, analytics, and engineered systems - and we bring these capabilities to the cloud.
In the Middle East, we have invested in our partners, invested in a data centre and invested in our products. It is these three elements that are facilitating our customers' journey to the cloud.
Customers in the Middle East realise that cloud adoption offers them speed, value and better ROI. To further drive this interest, Oracle has over the last few quarters delivered more than 200 applications on the cloud.
Some examples of the value that our cloud services bring to customers in the UAE are as follows: Abu Dhabi Department of Finance has deployed a private cloud shared services platform built upon Oracle hardware and software, enabling other public entities to shift their focus from financial management issues -including budgeting, planning, purchasing, cash management, reporting, and compliance - to core capabilities, such as improved municipal services for constituents.
AA Distribution, one of the largest petroleum companies in the Arab Gulf Region, operating more than 250 filling stations, 18 vehicle-inspection stations, and a vast network of convenience stores across the country is managing its operations on Oracle's engineered systems in a private cloud. With more than 3,000 concurrent daily users and more than 250 million financial transactions annually, Adnoc Distribution's filling stations are on track to double to 500 service stations in the next two years.
How well prepared is Oracle's cloud solution product for an influx of its existing customers in the region?
The journey to cloud isn't a one-way path - and each company's journey is unique. We address the distinct business and IT requirements of each customer by giving them unparalleled choice.
At Oracle, we have built a completely integrated cloud platform that spans all layers of the cloud and is based on our foundational infrastructure products. It's our focus on integration between these layers that genuinely sets us apart.
Oracle offers a complete range of services in all three primary layers of the cloud: SaaS, Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS).
That depth of product knowledge at every layer allows us .the ability to deliver real, powerful value by freeing up resources and driving innovation.
We provide a hybrid model that allows customers to deploy in the cloud, on premises, or in their own datacentres. We believe an integrated solution must span both on-premise and cloud, because applications and information live in both and will potentially co-exist for years. Customers must address these together, and only Oracle delivers on that promise.
We have been prepared for the cloud adoption rate for years and because we have thousands of on premise customers, we have a co-exist strategy in place. There is a clear road map that we share with customers on how they can move to the cloud and we provide them with the full support they need.
At Oracle, R&D is a key priority for us to create products that match our customers' expectations. Our investment in annual research and development has increased from US$3 billion to $5.7bn in the most recent fiscal year. We see cloud becoming central to key business sectors and the technology we offer sits at the heart of the economy. The rate of innovation is changing the world around us at an unprecedented pace and the growth we have witnessed in the Middle East region is indicative of that change.
Is Oracle confident of maintaining market share in the Middle East and if so why?
Our commitment to the Middle East region is resolute. We have been in the region for a long time and have gained deep experience across major sectors such as government, finance, banking, health care, construction, energy, retail and many more. Our investments in the region have only grown and the impact of these investments can be seen in our size, revenue, customer base, products and partners.
With the rapid rate of cloud adoption in the Middle East . Oracle will only continue to get bigger and better.
chnelson@thenational.ae
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
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Intercontinental Cup
Namibia v UAE Saturday Sep 16-Tuesday Sep 19
Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27
Results
7pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Dirt) 1,600m; Winner: RB Kings Bay, Abdul Aziz Al Balushi (jockey), Helal Al Alawi (trainer)
7.30pm: Maiden (PA) Dh 70,000 (D) 1,600m; Winner: AF Ensito, Fernando Jara, Mohamed Daggash
8pm: Maiden (PA) Dh70,000 (D) 1,400m; Winner: AF Sourouh, Tadhg O’Shea, Ernst Oertel
8.30pm: Maiden (PA) Dh70,000 (D) 1,800m; Winner: Baaher, Fabrice Veron, Eric Lemartinel
9pm: Maiden (PA) Dh70,000 (D) 2,000m; Winner: Mootahady, Antonio Fresu, Eric Lemartinel
9.30pm: Handicap (TB) Dh70,000 (D) 2,000m; Winner: Dubai Canal, Tadhg O’Shea, Satish Seemar
10pm: Al Ain Cup – Prestige (PA) Dh100,000 (D) 2,000m; Winner: Harrab, Bernardo Pinheiro, Majed Al Jahouri
TOUR DE FRANCE INFO
Dates: July 1-23
Distance: 3,540km
Stages: 21
Number of teams: 22
Number of riders: 198
Indoor Cricket World Cup
Venue Insportz, Dubai, September 16-23
UAE squad Saqib Nazir (captain), Aaqib Malik, Fahad Al Hashmi, Isuru Umesh, Nadir Hussain, Sachin Talwar, Nashwan Nasir, Prashath Kumara, Ramveer Rai, Sameer Nayyak, Umar Shah, Vikrant Shetty