Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

12/18/2009
07:45 AM
Bob Evans
Bob Evans
Commentary
50%
50%

Global CIO: Oracle CEO Larry Ellison On The Future Of IT

Ellison speaks out on Oracle's new Sun-enabled strategy and how that points to where the entire IT industry is headed.

"Our overall strategy right now going forward is not to sell those individual industry-standard components on their own but rather group them together into machines like Exadata, where we have processors, networking, storage, storage software, database software, our Oracle Enterprise Linux operating system—all as a complete database machine for both transaction processing and data warehousing. We think that makes it much easier for the customer—they don't have to buy all the individual parts and glue them together—but instead they buy the boxes: a high-margin product for us and a high-value purchase for them because they don't have to spend a lot of money on systems integration.

"We think that's the way customers are gonna go forward as they build their data centers: not buying components but buying systems like Exadata. And one of the big reasons we bought Sun is that we want to apply that same strategy to middleware, to applications, to the operating system itself: we're not gonna sell operating systems just for an individual computer, but we're gonna sell the next generation of Solaris that's gonna be a Cloud Edition of Solaris, where it manages a group, a cloud, a cluster of these computers that we sell together as a unit.

"That's highly differentiated: high-margin for us, and no systems integration for the customer. How big is that business? We think that's what the computer business is gonna look like for the largest customers going forward, so we think that's billions and billions of dollars. That is our business in the future."

3. Fusion Applications As Components: Rip-And-Replace Not Required

"The big thing for us is we've designed Fusion applications as components: they've got a service-oriented architecture and are componentized. . . . So it's not a rip-and-replace strategy that we have with Fusion: we can go in and sell you a lot of point solutions, we can sell you a specific application like Order Orchestration that integrates your existing SAP systems and existing Oracle systems, your JD Edwards systems and your PeopleSoft systems. Though, we can do a complete replacement over time and that's our plan but that's over a long period of time.

"We want [customers] to start with some of the components, like Order Orchestration or like some of our HR Incentive-Management systems. We've got a long list of things, and they'll buy them a piece at a time but they're designed to be easily integrated with what they already have. We think that's gonna allow us to sell Fusion aggressively out of the box and allow us to increase our share over SAP over time."

So that's how Larry Ellison sees Oracle evolving, and the impact Sun will have, and how those visions represent Ellison's larger view of where the entire IT industry is headed. At this point, it's mostly speculative—mostly, but not all. The one bit of tangible evidence we do have—Exadata—sheds some light on the merits of the integrated-system strategy so passionately embraced by Ellison, so as a final thought let's take a quick look at that.

During yesterday's call, Oracle president Charles Phillips said "Exadata is on fire—it nearly tripled in sales sequentially—the pipelines are growing week to week—we're now having some of the initial customers come back and ask for multiple systems, which is always a good sign. The main constraint we have now is just production capacity, and the field [sales force] is fighting for them in each region, so it's a red-hot product and we expect that to continue to add momentum going forward." And president Safra Catz (yes, Oracle has two presidents), speaking of Oracle sales momentum, added that "there's an enormous amount of heat around the Exadata product."

Does Larry Ellison's strategy of the rise of integrated systems make sense to you? Is that the shape of things to come, or just some smooth rationale for pursuing Sun through the gates of hell (er, the EU)? Let us know at the address below.

RECOMMENDED READING

Global CIO: Oracle-Sun A Bad Deal? Only A Fool Would Say That

Oracle Sees Unconditional EU Approval For Sun

Global CIO: Why Oracle's Larry Ellison Will Tell The EU To Pound Sand

IBM CEO Sam Palmisano Talks With Global CIO

Global CIO: An Open Letter To Oracle CEO Larry Ellison

Global CIO: Where Do Oracle's Profits Come From?

Global CIO: Oracle Dumps HP After Co-Creating 'Most Successful Introduction Ever'

Global CIO: Sam Palmisano's Grand Strategy For IBM

Global CIO: In Oracle Vs. SAP, IBM Could Tip Balance

Global CIO: Upheaval In The IT Industry: The End Of The World As We Knew It

Global CIO: IBM's Game-Changing Plunge Into Predictive Analytics

Global CIO: An Open Letter To Hewlett-Packard CEO Mark Hurd

Global CIO: Hewlett-Packard CEO Hurd's Strategy: The Infrastructure Company

GlobalCIO Bob Evans is senior VP and director of InformationWeek's Global CIO unit.

To find out more about Bob Evans, please visit his page.

For more Global CIO perspectives, check out Global CIO,
or write to Bob at [email protected].

Previous
2 of 2
Next
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Zero-Factor Authentication: Owning Our Data
Nick Selby, Chief Security Officer at Paxos Trust Company,  2/19/2020
44% of Security Threats Start in the Cloud
Kelly Sheridan, Staff Editor, Dark Reading,  2/19/2020
Firms Improve Threat Detection but Face Increasingly Disruptive Attacks
Robert Lemos, Contributing Writer,  2/20/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
6 Emerging Cyber Threats That Enterprises Face in 2020
This Tech Digest gives an in-depth look at six emerging cyber threats that enterprises could face in 2020. Download your copy today!
Flash Poll
How Enterprises Are Developing and Maintaining Secure Applications
How Enterprises Are Developing and Maintaining Secure Applications
The concept of application security is well known, but application security testing and remediation processes remain unbalanced. Most organizations are confident in their approach to AppSec, although others seem to have no approach at all. Read this report to find out more.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-8860
PUBLISHED: 2020-02-22
This vulnerability allows remote attackers to execute arbitrary code on affected installations of Samsung Galaxy S10 Firmware G973FXXS3ASJA, O(8.x), P(9.0), Q(10.0) devices with Exynos chipsets. User interaction is required to exploit this vulnerability in that the target must answer a phone call. ...
CVE-2020-8861
PUBLISHED: 2020-02-22
This vulnerability allows network-adjacent attackers to bypass authentication on affected installations of D-Link DAP-1330 1.10B01 BETA Wi-Fi range extenders. Authentication is not required to exploit this vulnerability. The specific flaw exists within the handling of HNAP login requests. The issue...
CVE-2020-8862
PUBLISHED: 2020-02-22
This vulnerability allows network-adjacent attackers to bypass authentication on affected installations of D-Link DAP-2610 Firmware v2.01RC067 routers. Authentication is not required to exploit this vulnerability. The specific flaw exists within the handling of passwords. The issue results from the...
CVE-2020-9330
PUBLISHED: 2020-02-21
Certain Xerox WorkCentre printers before 073.xxx.000.02300 do not require the user to reenter or validate LDAP bind credentials when changing the LDAP connector IP address. A malicious actor who gains access to affected devices (e.g., by using default credentials) can change the LDAP connection IP a...
CVE-2020-9327
PUBLISHED: 2020-02-21
In SQLite 3.31.1, isAuxiliaryVtabOperator allows attackers to trigger a NULL pointer dereference and segmentation fault because of generated column optimizations.