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Inforum 2015 Europe: Infor targets majority cloud revenue

Infor is aiming at half its licence revenue coming from cloud installations in 2016, according to president Stephan Scholl

Enterprise application software provider Infor aims to accrue more than half its licence revenue from cloud installations in 2016, according to president Stephan Scholl.

The technology supplier, which counts Adidas, BMW and Flextronics among its customers, said the goal marks its ambition in hosting new customers in its cloud, run on Amazon Web Services (AWS), as well as converting existing on-premise customers to the model.

“Our goal is to roll the ball over the hill on revenue for licences coming from our software-as-a-service [SaaS] subscription cloud business,” Scholl said.

At its Inforum conference in Paris, Infor announced workwear manufacturer and distributor Portwest, UK hotel chain Travelodge, and Zanini, supplier of plastic automotive components, as cloud customers (see below). Scholl said he was confident cloud would make up 51% of licence revenue in 2016 due to deals Infor has signed but not yet announced.

Rival Oracle said in June 2015 that its cloud SaaS and platform as a service (PaaS) reached $426m for the fourth quarter, around 5% of $8.4bn sales from cloud and software revenue together.

Gartner research director Nigel Montgomery said business leaders were becoming more assured in moving their enterprise applications from in-house hardware to the cloud.

Businesses opt for Infor's cloud

Portwest has extended its investment in Infor technology with an upgrade to Infor CloudSuite M3. The protective clothing supplies around 1,100 products and 9,500 stock-keeping units (SKUs) from six sites in the UK, Ireland, Poland, Dubai, Bangladesh and the US. To help enable international growth, Portwest chose a cloud deployment running on AWS to ensure consistency across different geographies and benefit from lower capital expenditure.

Travelodge, which runs more than 500 hotels in the UK, has chosen Infor SunSystems to support its UK operations. To be deployed in the cloud, and hosted by AWS, the application is designed to streamline operations by better financial reporting, procurement, invoicing and financial management across the estate.

Zanini is a tier-one supplier for original equipment manufacturers in the automotive industry with seven production plants in Europe, Latin America and North America, as well as commercial offices in the US and China. The Spanish manufacturer of plastic components has selected Infor CloudSuite Automotive to support its strategic plan towards cloud-based applications.

“I think that history is going that way. When people move forward to the cloud, the decision is quite often preceded by a change in CIO. That is for a reason: they are trying to change things around,” he said.

Also at Inforum, the supplier announced a programme dubbed Lift and Shift, which promises to move customer’s in-house applications to Infor’s cloud infrastructure. Then over time, at the customer’s own pace, the applications would be migrated to Infor’s suite of cloud specific applications, Scholl said.

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