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"Amazon's lead is over” - Why Oracle is off-target in cloud

James Henderson | Sept. 21, 2016
Larry Ellison seeks headline moment at Oracle OpenWorld, but facts get in the way.

“Oracle’s investments in IaaS, including virtualizing network resources, were also highlighted as an alternative to AWS during a Cloud Platform Analyst Summit as part of the first day of Open World,” Madden added.

“Oracle’s IaaS offerings will be under a large spotlight throughout Open World, as Oracle shows what it sees as the synergies and advantages of linking Oracle IaaS with its PaaS and SaaS - and tries to convince customers that AWS, Microsoft and Google are not the only IaaS players in town.”

To Ellison’s credit, in designing its next generation IaaS proposition, including bare metal cloud services, Oracle has rethought its proposition literally from the ground up.

Over the last two years it has been running an under the radar (or “skunkworks”) team in Seattle, involving many of the engineers and thought leaders that built the AWS cloud and also worked on Microsoft Azure.

“The team has taken advantage of the latest technology and cloud architecture to design a high-scale modern cloud, with security, SLAs and governance at its heart,” Ovum chief research officer, Tim Jennings, added.

“One of the key principles of the new architecture has been to move virtualisation to the network layer, with each tenant having a virtual private (layer 3) overlay network.

“This provides the customer with the cleanest possible bare-metal service, and allows complete choice over the stack that sits on top, right down to the hypervisor layer, in effect delivering a complete software-defined data centre.”

Whilst Oracle has first and foremost designed the service to meet the long-term needs of its large installed customer base, Jennings said the efficiency of the new physical infrastructure on which it is built, makes it cost effective for some large cloud workloads that might currently be running on AWS, Azure or Google.

“But there is still plenty of work required to roll all of this out, including the transition of its existing data centres to the new infrastructure, and the migration of customer workloads from the old to the new, all of which will have to be done step by step,” he cautioned.

“Once complete though, the new service will be well placed to help customers “lift and shift” their existing workloads to the cloud, which represents a sizeable opportunity for Oracle.”

 

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