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!
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