Quips: Oracle Open World 2014 - Day 1 The Larry Keynote #OOW14

September 29, 2014

Oracle Intends To Dominate Cloud From Silicon To Software

Amidst a packed standing room only crowd at Moscone North, Founder, Executive Chairman, and CTO, Larry Ellison took to the stage to clarify Oracle's company and cloud strategy. Key points from his keynote include how Oracle is:

Committing to full upward compatibility of all its database, middleware, and apps onto the cloud. After jumping into the cloud a bit late (10 years by most counts), Oracle appears determined to win the complete stack from IaaS to SaaS. Larry noted that Oracle has a one button click upgrade process to the cloud for database. Multi-tenancy has surfaced as an important feature after years of arguing about comingling databases.
Promising a one stop shop approach. Oracle intends to compete for the full stack from silicon to software and serve as the one -stop shop for the cloud. Oracle claims to be the only software company to open up the same platform used to develop its products to allow partners and customers to build on top of. New announcements on chips, storage, networking, security, and hardware show how Oracle is commoditizing technologies into the bigger RedStack. Oracle has no qualms going against Amazon on pricing, EMC on storage, and Cisco and HP on networking.
Using deployment choice and security as a competitive differentiator. Larry made a commitment to be able to offer customers the ability to buy software on-premises, hosted, or in the cloud. Security is also now "job one" for all Oracle software as he thinks he can do it from the root source at the silicon level all the way to the last mile in software.
Demonstrating market momentum. While Oracle was not the first ERP (NetSuite) in the cloud or the first EPM in the cloud (Host Analytics), Larry attempted to make the point that Oracle was gaining market share in all categories in the cloud. In classic Oracle marketing language, Larry noted that 19/20 of the major cloud vendors run on Oracle. The only exception was Workday. In any case, Oracle has moved from where they were two years ago in terms of market momentum to greater traction in the market with key wins at the high end of the Fortune 500. Constellation now sees them more in short lists than in the past.

Figure 1. The Flickr Stream From Oracle Open World 2014

A Working Guide To Where To Go For The Mini Tents

CX Mini Tent: Moscone West

Engineered Systems Mini Tent: Intercontinental Hotel

ERP Mini Tent: Westin Market Street

HCM Mini Tent: Palace Hotel

JavaOne Event: Hilton San Francisco

MySQL Mini Tent: Parc 55 Hotel

SCM Mini Tent: Westin Market Street

The Bottom Line: While Late To The Cloud, Oracle Is Doubling Down On R&D and Enablement

The Day 1 keynote with Larry Ellison shows that Oracle is still heavily investing in R&D to catch up in cloud enablement. Coming from behind in cloud adoption may not be a bad thing as existing cloud platforms are now over a decade old and cautious adopters and laggards are starting to embrace the cloud. Oracle has the R&D and tech know how to build a newer generation cloud platform. Moreover, the focus on owning the silicon to software stack, commoditizing the cost structure of technology, acquiring customer bases and technologies as needed, directly challenging competitors, and providing a one stop shop remain key pillars in Oracle's strategy.
The shift to the cloud is now top of mind for Oracle and competitors can expect fierce competition. Meanwhile, prospects, partners, and customers should look to Oracle as a provider that seeks to deliver a one -stop shop. Those that seek best of breed and avoid lock-in will cautiously consume Oracle piecemeal. In any case, Oracle will continue to be a short list option as they commoditize the marketplace. Why? Classic Oracle buyers expect simplification, a move to the cloud, and a preference to go w/ a one stop shop that drives down costs.

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