Oracle and Tencent partnership build cloud market in China

Tinuku ~ Oracle Corp is building partnership with Tencent Holdings to add to NetSuite's online business application portfolio in the software-as-a-service (SaaS) market in China. An industry segment projected to have sales of US$1.6 billion this year added to Oracle Corp's base as the world's largest software vendor.

Tinuku Oracle and Tencent partnership build cloud market in China

The partnership was formed after Oracle acquired NetSuite for US$9.3 billion last year as part of the world's second-largest investment company that has been in operation since 1989. NetSuite will continue to pursue and spearhead China's challenges.

"We have a development center in Beijing that is localizing our products and to double sales in China by last year," said Oracle chief executive Mark Hurd.

Cloud computing allows companies to buy, sell, rent, distribute software and other services. Resources are managed from data centers that refer to the internet. SaaS is the third largest segment of public cloud service market. This trend will dominate the information technology market the next decade.

Oracle has set its expectations to generate US$10 billion annual revenue from SaaS and similar services. Cloud computing provides an online environment for software developers to build business applications. Oracle targets total sales of US$37 billion this year.

NetSuite was founded in 1998 as the world's largest provider of cloud-based financial management, enterprise resource planning and business applications. The SaaS app market in China is estimated at US$4.2 billion by 2020.

The expansion of Oracle NerSuite will leverage the cooperation agreement with Tencent Cloud that has been built since 2016. Oracle's cloud product suite will be marketed and promoted through Tencent Cloud.

The arrival of Oracle and Tencent Cloud in China is becoming tough competition with another software giant is Germany's SAP who collaborated with Alibaba. SAP has total revenue of US$24.6 billion in 2016 has launched its business through Alibaba Cloud.