Digital Edition

SYS-CON.TV
Larry Ellison Whistles Past the (Cloud Computing) Graveyard

Larry Ellison recently unleashed a tub-thumping tirade against cloud computing covered by Ben Worthen (with further comments from Daya Baran, Giva Perry and Dan Farber) . Here is a quote from Larry:

The interesting thing about cloud computing is that we've redefined cloud computing to include everything that we already do. I can't think of anything that isn't cloud computing... The computer industry is the only industry that is more fashion-driven than women's fashion.

Now as usual with big whoppers told by people in fear of their checkbooks, Larry's rant has an element of truth. There is much cloud lipstick being sloshed on many a barnyard animal these days. But behind all the buzzwords, a basic shift is occuring - the wholesale outsourcing of core business applications.

Yes, this is a return to timesharing, but this ain't your grandfather's timesharing. It is interesting that Larry was a huge supporter of thin client computing when it threatened his enemy Microsoft but is now a detractor of the son of thin client when it threatens his own rice bowl.

Forrester research has a simple chart that illustrates Larry's dilemma - he paid $30B for a collection of low growth businesses, making Oracle is the Computer Associates of the new millennium (and we know where this strategy got CA).


Larry's rant is an extraordinary example of whistling past the graveyard. Oracle's huge transformation over the last 10 years has been from an infrastructure company (databases & middleware) to an applications company (ERP, CRM, SFA ect). Now, just as this transformation is completed, along comes an infrastructure that will obsolete all the applications Oracle just got done rolling up.

No wonder he sounds ticked - you would be too if you just spent more than $30B (see Oracle acquisitions chart below) on a bunch of wasting assets that are going to be shafted by the Cloud/SaaS shift just as Siebel's market share was eviscerated by SalesForce.

upinsmoke

The dead giveaway is that Larry's rant focuses on the metric most important to him - profitability - while ignoring the metric most important to customers - value. Larry knows that customers are deserting him in droves, what really angers him is that he can't make as much money in the SaaS world.

Read the original blog entry...



ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

CI/CD is conceptually straightforward, yet often technically intricate to implement since it require...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming ou...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple ...
Enterprises are striving to become digital businesses for differentiated innovation and customer-cen...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As au...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't com...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, wi...
The now mainstream platform changes stemming from the first Internet boom brought many changes but d...
DXWorldEXPO LLC announced today that Ed Featherston has been named the "Tech Chair" of "FinTechEXPO ...
Chris Matthieu is the President & CEO of Computes, inc. He brings 30 years of experience in developm...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: D...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with e...
In this presentation, you will learn first hand what works and what doesn't while architecting and d...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitori...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use ...
If your cloud deployment is on AWS with predictable workloads, Reserved Instances (RIs) can provide ...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear...
We build IoT infrastructure products - when you have to integrate different devices, different syste...
Consumer-driven contracts are an essential part of a mature microservice testing portfolio enabling ...