{"id":2241,"date":"2021-12-12T05:10:44","date_gmt":"2021-12-12T04:10:44","guid":{"rendered":"http:\/\/roglacup.com\/klaus62\/?p=2241"},"modified":"2022-05-03T05:00:54","modified_gmt":"2022-05-03T04:00:54","slug":"larry-ellison-knocks-aws-over-outage-oracles-cloud-never-ever-goes-down","status":"publish","type":"post","link":"https:\/\/roglacup.com\/klaus62\/2021\/12\/12\/larry-ellison-knocks-aws-over-outage-oracles-cloud-never-ever-goes-down\/","title":{"rendered":"Larry Ellison Knocks AWS Over Outage: Oracle\u2019s Cloud \u2018Never, Ever Goes Down\u2019"},"content":{"rendered":"

Oracle CTO Larry Ellison criticizes AWS, Workday and SAP in quarterly earnings call.<\/p>\n

Oracle Chief Technology Officer and Co-Founder Larry Ellison took swipes at Amazon Web Services just days after\u00a0network issues<\/a>\u00a0caused a vast array of AWS-powered websites and services to become inaccessible, saying that a customer told him that Oracle\u2019s cloud \u201cnever, ever goes down.\u201d<\/p>\n

During Austin, Texas-based Oracle\u2019s earnings call Thursday for the second quarter of fiscal year 2022, Ellison outlined \u201cfundamental differences\u201d in how Oracle and Seattle-based Amazon approach data center construction \u2013 saying that Oracle\u2019s strategy prevents major outages.<\/p>\n

\u201cOne of the fundamental differences in our strategy versus their strategy \u2013 they are building a small number of very, very large data centers,\u201d Ellison said during the call. \u201cOur strategy is to build a large number of smaller, less expensive data centers. We think that improves reliability dramatically. We won\u2018t have this giant data center going down. It reduces the blast radius of what happens when things go down. Less goes down.\u201d<\/p>\n

Ellison said that one customer in particular \u2013 only described as a large telecommunications company that uses Oracle, Google, Amazon and Microsoft\u2019s clouds \u2013 complimented Oracle\u2019s cloud resiliency in a note.<\/p>\n

\u201cThe note basically said, \u2018The one thing we\u2019ve noticed about Oracle\u2019s cloud is that it never, ever goes down \u2013 We can\u2019t say that about any of the other clouds,\u2019\u201d Ellison said. \u201cWe think this is a critical differentiator \u2013 availability.\u201d<\/p>\n

Coming For Microsoft<\/b><\/p>\n

On the earnings call Thursday, Ellison went on to describe how he sees Oracle\u2019s cloud offerings besting the competition, even though most reports put AWS first in terms of market share, followed by Microsoft and followed by Google.<\/p>\n

\u201cWe think we have a bunch of differentiators and we\u2018ll be able to compete very, very effectively with security, reliability, combination of apps and infrastructure, autonomy, and a bunch of other other things the other guys just will not be able to do,\u201d Ellison said.<\/p>\n

On the call, Oracle CEO Safra Catz referenced a Gartner report this year that put Oracle\u2019s cloud offerings ahead of Google in terms of technical ability.<\/p>\n

\u201cWe actually passed Google this year, and are higher than where Microsoft \u2013 who has been in this longer than us \u2013 was a year ago,\u201d Catz said. \u201cBut in addition, that scorecard doesn\u2018t even measure the capabilities we have in handling very large databases, which of course, we do uniquely of all the other hyper scalers. It\u2019s all very interesting, but we have things in addition to application in the infrastructure world that they can not handle.\u201d<\/p>\n

Amazon, SAP Targeted<\/b><\/p>\n

Ellison also took the time to criticize Amazon\u2019s database offerings, longtime competitor SAP and younger upstart Workday.<\/p>\n

\u201cOur version of MySQL is much better than Amazon\u2019s version \u2013 much faster,\u201d Ellison said on the call. \u201cI mean, more than 10 times faster because of HeatWave. We have this query optimizer they don\u2019t have at all.\u201d<\/p>\n

Ellison labeled SAP and Workday his company\u2019s biggest competitors. He continued his line of attack on SAP cloud products, saying they are not \u201ctrue cloud\u201d products and saying that SAP too infrequently updates its cloud products.<\/p>\n

\u201cThey bought some edge products around the cloud, but they didn\u2018t actually rebuild their software for the cloud. That\u2019s the same old 35 year old software they\u2019ve been installing forever,\u201d he said. \u201cTheir goal is simply to hold on to their installed base. But they are losing customers to us.\u201d<\/p>\n

Ellison said FedEx and the Petronas gas company are examples of SAP customers Oracle has recently taken. \u201cWe\u2018re taking customers from SAP\u2019s install base,\u201d he said. \u201cThey\u2019re still holding on to more of their base than we\u2019re taking, but we\u2019re making inroads.\u201d<\/p>\n

Ellison said that Workday has done well in human capital management (HCM) but not in enterprise resource planning (ERP). \u201cTry to go out and find live Workday ERP customers. Try to find any. So we\u2018re winning almost everything in cloud ERP. Ninety eight percent of the time we beat Workday,\u201d he said.<\/p>\n

The Oracle co-founder did pay Microsoft a compliment during the call, saying that the company has been able to convert on-premises customers to cloud customers before Oracle. \u201cA lot of companies like Microsoft did a great job of moving their entire Microsoft Office install base into the cloud to dramatically increase the size of their cloud business,\u201d Ellison said. \u201cUnfortunately, we didn\u2018t have the same option or opportunity.\u201d<\/p>\n

But Oracle\u2019s large on-premises customer base is actually an opportunity more than a hindrance, Ellison said.<\/p>\n

Oracle has 7,500 customers in on-premises ERP and only 1,000 of them have moved to Fusion Cloud ERP, presenting an opportunity for migration.<\/p>\n

What\u2019s more, Fusion has 8,500 customers, only 1,000 of them from the on-premises business, Ellison said. Adding in new customers from Oracle subsidiary NetSuite, Ellison estimated a total of 35,500 cloud ERP customers new to Oracle.<\/p>\n

\u201cWhether it\u2018s a small company like Infor or a large company like SAP, or a variety of other companies, the vast majority of our cloud ERP customers are not coming from our install base. They\u2019re coming from someone else\u2019s install base,\u201d he said. \u201cEighty-five percent of them that we currently have are from someone else\u2019s install base. \u201c<\/p>\n

\u201cWe are not on our way to building a $20 billion cloud ERP business in five years \u2013 I think it\u2018s going to be a lot bigger than that,\u201d he said.<\/p>\n

Partner Comment<\/b><\/p>\n

Ron Zapar, CEO of Naperville, Ill.-based Oracle partner Re-Quest, told CRN in an interview that he hears more demand from Oracle on-premises customers to move workloads to the cloud.<\/p>\n

\u201cPeople have let the early warriors fight the battle, and now they feel like it (OCI) is a little bit more mainstream,\u201d Zapar said. \u201cWe\u2019re seeing everything from Oracle Database workloads, traditional things like backup and DR (disaster recovery), which we\u2019ve kind of always done. But we\u2019re seeing a lot more people look at it to do IAS, moving application workloads to the cloud. We have one customer right now that we\u2019re working with that\u2019s virtualizing their entire data center in the Oracle Cloud.\u201d<\/p>\n

Zapar said provisioning and implementing Oracle\u2019s cloud products continues to simplify over time, and he looks forward to more investment in simplifying deployment in the new year. He would also like to see more training and certification resources for Oracle partners, he said.<\/p>\n

Hurd Lawsuit Hurt Oracle<\/b><\/p>\n

Despite\u00a0the usual tough talk<\/a>\u00a0from Oracle\u2019s executives, the company reported a net loss of $1.25 billion for the quarter, blaming a one-time payment related to \u201ca 10-year old dispute surrounding former CEO Mark Hurd\u2018s employment,\u201d according to a company statement.<\/p>\n

Hewlett-Packard Co.\u00a0sued<\/a>\u00a0Oracle in 2010 to try to stop the company from hiring Mark Hurd after HP dismissed Hurd following\u00a0a sexual harassment investigation<\/a>. Hurd served as president and then co-CEO of Oracle alongside Catz. He\u00a0died<\/a>\u00a0in 2019 at age 62.<\/p>\n

Oracle reported $10.4 billion in total quarterly revenue, up 6 percent year over year. Cloud services and license support revenues increased 6 percent to $7.6 billion, according to the company. Cloud license and on-premises license revenues increased 13 percent to $1.2 billion.<\/p>\n

The company reported 22 percent growth in its infrastructure and applications cloud businesses, approaching $11 billion in annualized revenue.<\/p>\n

Oracle\u2019s stock traded at $98 in after-hours trading Thursday, up about 10 percent from $89.14 at market open.<\/p><\/blockquote>\n

Source: Larry Ellison Knocks AWS Over Outage: Oracle\u2019s Cloud \u2018Never, Ever Goes Down\u2019<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Oracle CTO Larry Ellison criticizes AWS, Workday and SAP in quarterly earnings call. Oracle Chief Technology Officer and Co-Founder Larry Ellison took swipes at Amazon Web Services just days after\u00a0network issues\u00a0caused a vast array of AWS-powered websites and services to become inaccessible, saying that a customer told him that Oracle\u2019s cloud \u201cnever, ever goes down.\u201d… Read More »Larry Ellison Knocks AWS Over Outage: Oracle\u2019s Cloud \u2018Never, Ever Goes Down\u2019<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[6,35],"tags":[],"class_list":["post-2241","post","type-post","status-publish","format-standard","hentry","category-cloud","category-oracle"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/posts\/2241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/comments?post=2241"}],"version-history":[{"count":2,"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/posts\/2241\/revisions"}],"predecessor-version":[{"id":2245,"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/posts\/2241\/revisions\/2245"}],"wp:attachment":[{"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/media?parent=2241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/categories?post=2241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/roglacup.com\/klaus62\/wp-json\/wp\/v2\/tags?post=2241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}