Welcome!

Recurring Revenue Authors: Pat Romanski, Karyn Jeffery, Elizabeth White, Liz McMillan, Ed Featherston

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, IoT User Interface, Recurring Revenue

@CloudExpo: Article

Oracle to Compete with Amazon

Ellison claimed his SaaS and PaaS customers asked for IaaS

Oracle CEO Larry Ellison, a late convert to the cloud, formally announced the coming of an Oracle Infrastructure-as-a-Service (IaaS) cloud to compete primarily with Amazon Web Services.

The announcement was made during his keynote Sunday at Oracle OpenWorld. Larry, being Larry, and this is so Larry, actually let the cat out of the bag a couple of weeks ago during the company's conference call with Wall Street when it reported its numbers.

One little detail Larry didn't mention before, the new cloud is gonna be based on Oracle's own eight-core Xeon-based InfiniBand-linked Exa- hardware, its Exadata, Exalogic and Exalytics machines including a new Exadata database machine that houses enough built-in memory that users won't need external storage so kiss off, EMC and Hitachi.

This new Exadata X3 will have 26TB of processor memory - 4TB of storage per rack and 40TB of compressed data in main memory. (Compression is big in Oracle's sales pitch.) The X3's 22TB of flash computer memory is four times as much flash storage per rack than the previous Exadata version and it's supposed to process data way, way faster than disk-based systems.

Ellison claimed that "Customers will save so much money on storage that it will pay for that Exadata X3 over and over again."

The box, which will compete with SAP's HANA database - the X3 is supposed to process 52 times as much data as HANA - and IBM and HP systems, will start at $200,000 with deep discounts available,. That's reportedly one-eighth the price of IBM machines.

Oracle wants to replicate its IaaS widgetry on a customer's site as an Oracle Private Cloud. In both cases Oracle will own the hardware and manage it.

What's still unclear is when either of them will actually get here and what it'll all cost - other than that it'll be utility pricing. Oracle co-president Mark Hurd was on CNBC Monday afternoon indicating Oracle will sweet-talk accounts with tales of how much money it can save them on storage.

The new cloud-based multi-tenant Oracle 12c database is key to the scheme and that won't be out until early next year so that may be the clouds' target date. Multi-tenancy will let users gang their databases on consolidated servers, move some of the workload off the apps and, Ellison says, provide the security that multi-tenancy at the application layer doesn't provide.

Since it's a "container" database meant to hold lots of databases, multiple companies can also share the thing while keeping their data separate and sharing underlying hardware resources like memory or file storage.

Reportedly based on a fundamentally new architecture, separate memory and processes are allocated to each database and users can take "one dedicated set of memory, one set of operating system processes, and then plug multiple separate private databases into that single container."

Ellison called it the "first multi-tenant database in the world." It's definitely the first major revision of Oracle's database software in five years and compared to the current Oracle 11, the 12c is supposed to use one-sixth the hardware and run five times as many databases.

Oracle IaaS widgetry will include its own operating system, virtualization, middleware, storage and of course apps.

Ellison claimed his SaaS and PaaS customers asked for IaaS. Whether they had something other than what he called "plain old commodity infrastructure" in mind remains to be seen.

Oracle is flying in the face of conventional cloud wisdom by using a scale-up approach based on specialized high-end boxes rather than a web-scale scale-out approach like Amazon, Facebook and Google. It'll be brilliant if it sells and creates a natural marketplace for Oracle's hardware, whose revenues dropped 24% last quarter to $779 million.

TechCrunch, for one, thinks "Amazon has nothing to worry about. Oracle will never win the cloud without developers....Oracle will never match Amazon Web Services' (AWS) first-class treatment of the developer community. Nor will Oracle even try: it's a vertical iron machine that Ellison believes has the power to be the new ‘cloud' for IT. It is not a horizontal distributed, self-service environment that you get when you use AWS. By ignoring developers, Oracle has lost before it has even gotten started. A service like AWS scales because the people who use it are developers. And those developers create apps that power services that millions of people use....Without developers, Oracle's cloud play will become limited to a traditional base of customers who have a heavy dependence on legacy solutions and are committed to integrating Oracle-engineered systems."

There is one thing, though. Oracle, like IBM, knows how to sell to the C suite where the bills get paid.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...