Last week, the Oracle Financial Services Global Business Unit (GBU) released operating results for the first half of FY2012. Frank Brienzi, Senior Vice President of the GBU, S. Ramakriskhnan who leads OFSA Analytics and Don Russo who runs the Insurance sector all spoke enthusiastically of its performance, key wins in core banking, analytics, and insurance sectors, and recent innovation in OFSA/Exadata integration.

Highlights

  • $35B in revenue on a trailing twelve month basis, including license and service revenue, with the "right balance", according to Brienzi, leading to a tail of longer term licensing deals
  • New client wins, balanced across core banking replacements, next-gen core banking build outs, risk architecture transformation, GRC implementations, and claims and policy administration modernization initiatives
  • Promising performance benchmark tests for OFSA analytics and Exadata, specifically for profitability, liquidity risk, and regulatory capital modeling

The 1H FY2012 GBU results were released just ahead of this week's Oracle Financial Services Summit in New York, key noted by Oracle President Mark Hurd. Oracle's deeper penetration into the financial markets provide further examples that key sectors continue to recognize that innovation, transformation and technical agility are essential for successful competition in today's market. In a recent survey of approximately 90 CIO's across industries, over 65% said they see their roles as evolving from information systems experts to innovation enablers. In addition, they expect their innovation budgets to grow by between 23% and 28% over the next three years with analytics being one of their most important innovation platforms.

Move over core - business analytics is the new core, and one important CIO starting point is re-orienting the organization about how essential analytics is to their business. Our data and client conversations continue to support the premise that the ability to thrive in an uneven economy is largely dependent on a firm's success at improving the analytic orientation of the organization and using these capabilities to manage risk and deliver previously unseen value. It is increasingly critical to leverage analytic platforms to harness information to make actionable, optimized, and timely decisions, while keeping risks at acceptable levels and uncovering opportunities to stay (in) and ahead of the market.