Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Oracle's Exalogic box: Cloud washing at its best?

By | September 20, 2010, 3:45am PDT

Summary: Unless Oracle takes away the Exalogic capacity you spent a few million dollars for and gives you your money back, the true cloud elasticity of the Exalogic box is a bit fuzzy.

Oracle CEO Larry Ellison acknowledged that every tech vendor has its own definition of cloud computing so instead of mocking cloudwashing—a term that refers to slapping the word “cloud” in front of everything—he decided to join the party.

At a keynote that was largely panned across Twitter, Ellison took shots at most software as a service vendors, notably Salesforce.com. Ellison argued that Salesforce.com does on-demand software, but not really cloud computing. He neglected to mention the Force.com platform. Ellison also gave props to Amazon Web Services as a fine example of cloud computing.

From there, Ellison moved to put Oracle’s spin on cloud computing. Oracle’s cloud entry is an integrated hardware/software box dubbed Exalogic Elastic Cloud. The idea here is that the Exalogic box provides cloud infrastructure in one stop. Ellison said Exalogic includes “the fastest Java performance, elastic capacity on demand and a completely fault tolerant system.”

Kind of like, well, a mainframe? Now you can’t blame Oracle for putting its own spin on cloud computing, but it does muddy the waters a bit. Every hardware vendor has some spin on cloud computing, but usually preface the effort as the “private cloud.” The private cloud essentially refers to your data center. Under this scenario, you buy servers and deliver services to your company. Its hybrid cloud, but the capital expense is still there.

Sam Diaz sums it up:

His pitch was that Exalogic, like Amazon, is a flexible and elastic platform, a hardware-software device that can meet the needs of any company. He went to great lengths to play up the ability to issue patches for bugs that might be found in a faster and more efficient way. He talked about standardization, easy manageability and cost savings.

What’s funny is that, as Oracle talks up the cloud and the SaaS applications, it almost begs the question: If that’s where things are headed, why would I need all of this hardware?

Indeed, cloud computing is supposed to turn capital expenses into operating expenses. Exalogic looks like more capital spending. With Exalogic, Ellison is pitching a box that accelerates Oracle’s software lineup, notably middleware. But is Exalogic really elastic? Is it really cloud?

NIST has put a lot of time in defining cloud computing. One core tenet of cloud computing “rapid elasticity,” where capacity can be provisioned and scaled up and down at will. Think Amazon Web Services.

Does the Exalogic box meet that criteria? Will Oracle take a box back if you don’t need the computing power?

Probably not. Simply put, Oracle’s Exalogic box gives you capacity on demand because you’re still buying more capacity than you need. It’s a nice box, but to the IT buyer Exalogic may not be all that elastic when it hits your budget.

Unless Oracle takes away the Exalogic capacity you spent a few million dollars for and gives you your money back, the true elasticity of the Exalogic box is a bit fuzzy.

Also:

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

Talkback Most Recent of 9 Talkback(s)

  • RE: Oracle's Exalogic box: Cloud washing at its best?
    Gotta love those clean clouds LOL

    www.online-privacy.eu.tc
    ZDNet Gravatar
    ReeTung
    20th Sep 2010
  • ZDNet Gravatar
    PB_z
    20th Sep 2010
  • ZDNet Gravatar
    terry flores
    20th Sep 2010
  • ZDNet Gravatar
    roodyg
    20th Sep 2010
  • Elasticism
    Exalogic is completely and fully elastic. But, only in one direction.
    ZDNet Gravatar
    pwatson
    20th Sep 2010
  • RE: Oracle's Exalogic box: Cloud washing at its best?
    I deemed Blueberry Girl from Willy Wonka as Oracle's new cloud mascot: http://oracleoptimization.com/. Until Oracle enables customers to reduce-maintenance-fees-as-you-shrink, Larry is not in the cloud business.
    ZDNet Gravatar
    eguyer@...
    24th Sep 2010
  • Oracle success with
    Oracle's success with "Cloud" it's spin means that many Large Corporations and Enterprises still are not confident in real cloud offerings.

    I am sure there several reasons that could be listed.
    The main reason is that once committed to a "Cloud" implementation, there will be no tolerance for the kind of outages that many "free" cloud customers put up with on Live.com, Google or Facebook.

    Consider the firms we are talking about here, BANKS, national and international corporations, like UPS, Utilities companies like PG&E. Who really thinks that these Enterprise-level corporations are going to commit to true "Cloud" infrastructure. I am sure on some level it makes sense, but key production systems will remain tightly controlled, locked-up, in-house operations.

    For now, Oracle is betting that at the Enterprise-level, CTO's and CFO's just are not ready to commit to having all their resources on true "Cloud" implementations, even if that means some higher expenses. Oracle bets that they can add enough value to their offerings to warrant the extra cost.

    For now that bet may payoff, until "Cloud" offerings can guarantee 100% up-time, and scale up to what Enterprise-level Corporations need.

    Cloud Computing for now remains a Medium to Small business option. There is where all the growth for "Cloud" computing really is.
    ZDNet Gravatar
    daniel.pereznet
    24th Sep 2010
  • RE: Oracle's Exalogic box: Cloud washing at its best?
    Oracle is betting that enterprise-class customers will want the same benefits of standardization, rapid provisioning, low-cost high-availability - as a service to internal customers. And that is a sound business bet.

    Yes, companies are still absorbing the capital costs, however if these enterprise class IT organizations learn how to provision PHYSICAL capacity just-in-time onto their data center floor using lean-provisioning, (see a company ravelloanalytics.com), they will not be paying Oracle huge amounts of upfront capital.

    The issue is whether big enterprise class IT departments can overcome the lack of in-house strategic financial and capacity management skills to deliver real savings to their internal customers. Simply building a private doesn't solve those problems, nor will it automatically produce savings. And if they cannot deliver real value, they are setting themselves up for being replaced. With virtualized stacks in their private clouds, the switching costs to a public cloud will be much easier. And companies like Oracle will be waiting to catch the failures!
    ZDNet Gravatar
    danky1005
    6th Oct 2010
  • RE: Oracle's Exalogic box: Cloud washing at its best?
    Great to acquire gonna your internet site 2012 nfl jerseys nonetheless all over again, it is really acquired been months for me.
    ZDNet Gravatar
    jackson1984-24316069205748857739440257893812
    10th Oct

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