Global Analyst Insights by Rene Buest

Oracle pushes its cloud-washing bravely ahead

By on January 16, 2013 in Comment with 0 Comments

Oracle continues to work on its cloud-washing strategy and drives it forward despite vehement criticism. Under the name “infrastructure as a service on premise with capacity on demand” Oracle offers enterprises its hardware to rent for the own data center.

Preconfigured applicationserver

Oracle is expanding its private cloud infrastructure to offer the opportunity to rent preconfigured application servers for a monthly fee, which will be installed in the client’s data center. The by Oracle named “engineered systems” include Oracle Exadata Database Machine, Oracle Exalogic Elastic Cloud, Oracle Sparc SuperCluster, Oracle Exalytics In-Memory Machine and Oracle Sun ZFS Storage.

The idea is that Oracle provides extra capacity that go beyond the already used resources of an Oracle private cloud. Exactly this Oracle called infrastructure-as-a-service (IaaS), which has nothing to do with an IaaS cloud offering but ordinary Oracle data center solutions.

A three-year contract is not cloud!

Just as little the “Oracle Cloud Infrastructure” is a true cloud offering, it looks with the new “Oracle IaaS on-premise”. The three-year contract includes only the hardware for the application server, maintenance and a certain amount of usage. The use of Oracle software licenses result in additional costs. Furthermore you have to pay for so called “peaks”. What this exactly is and what the cost are is not stated.

Oracle loses pace

Unfortunately, it is increasingly clear how Oracle wants to sell his philosophy of cloud computing to the market. They simply take their hardware, software, etc. which were previously expensively sold, and now rents them as “cloud”!

It seems Oracle tries everything to keep pace with the cloud market. But they do not have the right strategy. The real public cloud providers, especially Amazon Web Services, Windows Azure, Google and Rackspace will increasingly outstrip Oracle. But, on the private cloud side it looks not better for Oracle. Here providers like openQRM-Enterprise, Eucalyptus, OpenStack-Partner and CloudStack get more and more market share.

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About the Author

About the Author: Rene Buest is Gartner Analyst covering Infrastructure Services & Digital Operations. Prior to that he was Director of Technology Research at Arago, Senior Analyst and Cloud Practice Lead at Crisp Research, Principal Analyst at New Age Disruption and member of the worldwide Gigaom Research Analyst Network. Rene is considered as top cloud computing analyst in Germany and one of the worldwide top analysts in this area. In addition, he is one of the world’s top cloud computing influencers and belongs to the top 100 cloud computing experts on Twitter and Google+. Since the mid-90s he is focused on the strategic use of information technology in businesses and the IT impact on our society as well as disruptive technologies. Rene Buest is the author of numerous professional technology articles. He regularly writes for well-known IT publications like Computerwoche, CIO Magazin, LANline as well as Silicon.de and is cited in German and international media – including New York Times, Forbes Magazin, Handelsblatt, Frankfurter Allgemeine Zeitung, Wirtschaftswoche, Computerwoche, CIO, Manager Magazin and Harvard Business Manager. Furthermore Rene Buest is speaker and participant of experts rounds. He is founder of CloudUser.de and writes about cloud computing, IT infrastructure, technologies, management and strategies. He holds a diploma in computer engineering from the Hochschule Bremen (Dipl.-Informatiker (FH)) as well as a M.Sc. in IT-Management and Information Systems from the FHDW Paderborn. .

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