Oracle Corp.'s cloud services continue to attract a bigger crowd. And it's not just customers that are lining up to work with Oracle's PaaS and SaaS platforms. Turns out, big outsourcing companies like Wipro are getting into the act as well.

Indeed, Wipro has invested $5 million into DriveStream, an Oracle cloud application specialist. The strategy is straightforward. Many Oracle customers need help when they migrate on-premises workloads into Oracle's cloud. Together, Wipro and DriveStream want to accelerate those transitions -- offering customers cloud consulting and migration services along the way.

"This investment into Drivestream reflects Wipro’s continued commitment to help our customers adopt Oracle cloud applications," said Bhanumurthy B.M., chief executive, Application Services and Strategic Alliances, Wipro, in a prepared statement. "This unique complement of strengths between the two companies will enable us to jointly deliver value to our customers and enhance our leadership in the Oracle cloud market space."

Oracle Cloud Revenues

The opportunity for such services appears to be accelerating. Oracle generated $200 million in new recurring revenue (annualized) from PaaS and SaaS cloud services during its most recent quarter, according to CEO Mark Hurd. Oracle expects that figure to reach $300 million in new recurring cloud revenue (annualized) this quarter. Hurd made the comments during Oracle's earnings call yesterday.

In some circles, Oracle has been considered a cloud laggard -- especially as Amazon Web Services and Microsoft Azure have emerged to lead the IaaS market. Still, Oracle has worked hard to distance itself from the commodity cloud conversation -- focusing instead on higher-margin SaaS applications. Some of those SaaS offerings are overhauled versions of Oracle's on-premises products. Others involve acquired platforms like Eloqua and Taleo.

Wipro and DriveStream are focusing their cloud efforts on the SaaS sector as well. Key priority areas include Oracle cloud HCM and Oracle cloud ERP solutions.

Oracle appears to be benefitting. The company's cloud revenues are growing faster than rival Salesforce.com, CEO Safra Catz asserted during Oracle's earnings announcement yesterday. But growth rates have to be placed in proper context. Overall, Salesforce.com's cloud business was $4 billion in 2014, an estimated 1.5 to 2.5 times larger than Oracle's overall cloud revenues the same year.

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