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Why Oracle believes AI can improve enterprise software
According to PTI, Ellison said business software has historically been incomplete for many industries. Companies often have to customise existing applications, develop additional features or connect products from multiple vendors to meet their requirements. He believes AI could help software makers deliver more complete systems designed for specific industries.
Oracle is pursuing this approach across healthcare, banking, retail, hospitality and government, starting with healthcare. Ellison considers the sector particularly complex because medical science and hospital operations continue to evolve.
He cited an experience at a hospital where medical professionals had to navigate multiple screens to access his son’s X-rays after a leg fracture. Ellison argued that users should be able to describe what they need and receive the information without navigating complicated interfaces.
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Oracle Health, the company’s healthcare division, is also being positioned as an AI-first system. Ellison said it can identify a hospital’s existing processes and add new capabilities without requiring a lengthy installation. He noted that conventional software deployments can take up to two years and cost businesses substantial amounts.
What is behind the SaaS apocalypse fears?
The term “SaaSpocalypse” describes concerns that AI assistants could reduce businesses’ dependence on subscription-based software and IT service providers. These fears intensified as Anthropic introduced Claude Cowork, raising questions about whether AI could perform tasks traditionally handled by specialised software.
Zoho founder and chief scientist Sridhar Vembu has also warned that companies spending substantially more on sales and marketing than on engineering and product development could be vulnerable to AI disruption.
However, AI is creating new business opportunities for Indian IT companies. TCS reported an annualised AI revenue run rate of $3.1 billion in the September quarter of FY2027, up more than 19% sequentially. Infosys reported 29% quarter-on-quarter growth in AI revenue, which accounted for 10.5% of its quarterly revenue.
These figures indicate growing demand for AI-related services, but they do not establish that traditional software companies are immune to disruption. Ellison argues that adapting applications to AI could help established businesses stay relevant as the technology changes how people work.