Welcome!

Recurring Revenue Authors: Liz McMillan, Yeshim Deniz, Elizabeth White, Xenia von Wedel, Carmen Gonzalez

Blog Feed Post

It’s happening – Oracle moves closer still to networking infrastructure

I have commented a few times (here and here) that the move towards software-defined everything means that new combatants will be stepping into what has been traditionally been a fairly sparsely populated networking boxing ring. If one of the end games for SDN is a tighter link between applications and the network, then it was always only a matter of time before the networking guys stepped into applications, and the application guys stepped into networking.

And so as Oracle announces another acquisition in the SDN space, this appears to be playing out as predicted.

In case you missed it, Oracle announced this week that they were acquiring WAN virtualization player Corente, whose “policy-defined and enforced abstraction layer…replaces the hard-wired enterprise network with an intelligent software-defined one.”

There are a few stories about the acquisition here:

So what does this mean for the networking industry?

This is the next step in what will likely be a long journey from enterprise software into broader IT infrastructure. The future of IT is not silos of compute, storage, networking, and applications. So any company whose ambition is to be the leading IT vendor will need to broaden their portfolio to include the various elements. This means that companies like Oracle will need to add aspects of networking to their existing compute, storage, and application assets.

It also means that traditional networking vendors will need to, at some point, expand their own reach across the infrastructure/application boundary. And the faster that Oracle moves, the more quickly those changes will play out.

None of this is lost on Cisco, by the way. At their Insieme coming-out party, CEO John Chambers didn’t talk about networking. His dialogue with analysts and reporters has consistently targeted Cisco’s objectives to be the leading IT company.

Two titans squaring off in a bout with stakes as large as the whole of IT spend will have repercussions for the entire industry.

  • Selling motions will evolve, which will change infrastructure insertion. If the IT silos do in fact come down, then what triggers new infrastructure purchases? Today, infrastructure purchases are largely capacity-based. I need this many new servers, which will drive this much new storage and network capacity. But is it possible that you start to see application-led sales? I want to deploy this enterprise application for this many users across this many data centers. Over time, it is conceivable that supporting infrastructure is pulled through. Obviously, this won’t happen overnight, and it certainly won’t happen everywhere.
  • Product bundling will match the selling motions. If the purchasing behavior is around these broader IT solutions, then vendors will start to bundle their products that way as well. This means that purchases at the largest enterprises become even more about volume purchase agreements. This makes life hard for anyone who is competing in the networking space on price. If the network is getting pulled along with compute, storage, and applications, the larger vendors can just drop the price contribution for networking gear, effectively negating any cost advantages. Blending margins across a portfolio (particularly one that includes software products) is common practice already.
  • Differentiation will move from price to value. This is one of those Oh Duh! observations that ought to be happening anyway, but it is worth pointing out that if you are not competing at the overarching IT solution level, you better be offering value of some sort underneath. Being cheaper won’t cut it. You have to be able to demonstrate how you contribute to the broader IT experience. This should expand the double-Ex discussion from CapEx and OpEx to CapEx, OpEx, and AppEx (application experience).
  • In solutions, orchestration of workflows and workloads is key. Once the universe moves to these broader solutions, there will be an even more urgent requirement to make all these disparate systems work together. This means that integration will become a major sales attack vector. For the big guys, this will shift a larger part of the competitive battle to professional services. How will a company like Oracle who has mastered the professional services business fare in a more technical environment? How will a company like Cisco that has mastered the technical side fare when they have to turn it into a stronger business? And what happens to systems integrators (looking at you, IBM) who will want to compete in the same space? For the smaller players, professional services can help mitigate risk, but it means that gear will need to be designed expressly with integration in mind. Any vendor who doesn’t talk in very explicit terms about this already is in trouble. You have to build integration in from the architectural beginnings; as a bolt-on, integration is not effective.
  • The partner landscape will be interesting. If professional services are important for the larger customers, imagine the opportunity that exists for VARs in the mid-sized space? The VARs that are adding integration skills (orchestration, DevOps, and so on) will have a marked advantage over those who do not. There will be large VARs who will be put out of business because they failed to identify and evolve with the shifting sands.
  • There will be some wildcard changes as well. I don’t know what they will be (they are wildcards, after all), but what happens to companies that typically lead these large IT transformation initiatives (Accenture, Deloitte, Infosys, PRTM, and so on)? Does this create more opportunity? Does this create more competition? Do they compete with the vendors they support?
  • Where are IBM and SAP in all of this? It is probably unfair to call out IBM as they are active in OpenDaylight and have been pursuing DOVE for some time. But what happens to these giants if the battle shifts?

Those of us in the networking industry typically focus on our industry fairly exclusively. But disruption rarely occurs from within. If we are too insular, we will collectively miss the moves at the periphery, which could leave a lot of us out in the cold (even those of us who call the warm West Coast our home).

To read more on this topic, check out:

The post It’s happening – Oracle moves closer still to networking infrastructure appeared first on Plexxi.

Read the original blog entry...

More Stories By Michael Bushong

The best marketing efforts leverage deep technology understanding with a highly-approachable means of communicating. Plexxi's Vice President of Marketing Michael Bushong has acquired these skills having spent 12 years at Juniper Networks where he led product management, product strategy and product marketing organizations for Juniper's flagship operating system, Junos. Michael spent the last several years at Juniper leading their SDN efforts across both service provider and enterprise markets. Prior to Juniper, Michael spent time at database supplier Sybase, and ASIC design tool companies Synopsis and Magma Design Automation. Michael's undergraduate work at the University of California Berkeley in advanced fluid mechanics and heat transfer lend new meaning to the marketing phrase "This isn't rocket science."

IoT & Smart Cities Stories
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.