Ellison back to Benioff: Salesforce.com's clouds are in a box

September 22, 2010, 4:35pm PDT | Length: 00:04:28
At the OracleWorld Open conference in San Francisco, Oracle CEO Larry Ellison responds to remarks made by Salesforce.com's Marc Benioff, who criticized Oracle's new Exalogic machine with the statement that "clouds aren't in a box." Ellison says, "Salesforce.com runs on 1,500 Dell servers...which are boxes."

Transcript

Ellison back to Benioff: Salesforce.com's clouds are in a box

>> Larry Ellison: I'm going to be very brief, but I just want to repeat a little bit of my presentation on Sunday, which is the Exalogic cloud on the box. I have to chuckle a little bit about the phrase cloud in a box, because I know that the CEO of Salesforce.com says, Larry just doesn't get it. Clouds don't run in a box. Okay? So what does he think Salesforce.com runs on, if not on a box? Doesn't run on a box. Actually Salesforce.com runs on 1,500 Dell servers, which are boxes. One thousand five hundred of them. Now, he really got upset because we don't have an Exalogic box here on stage, but the Exalogic box is about this tall. And he was really offended the box was taller than he was. And he said, clouds especially don't run on boxes that are tall. I mean, please look this -- you can't make this stuff up. Okay. Do you think those 1,500 Dell boxes are all really like low to the ground? You'd need acres and acres. You put them -- you stack them up, could you use less floor space? Unless you have really low ceilings. Applause

>> The thing that's interesting -- let's look at the next slide about this. What the Exalogic machine is, it's 30 servers, InfiniBand networking, a lot of storage, a virtual machine, operating system, middleware, that runs all of your applications, including Salesforce.com. This is actually kind of the ideal box. If you wanted to go say from 1,500 servers to 400 or whatever -- I don't know what the right number is, but certainly a lot less than he's got, he would pick Exalogic. It's kind of the ideal machine to run an application like Salesforce.com. But somehow I go back to the phrase, "Larry, you don't get it. A cloud does not run on a box." And this is the problem I've had with the term cloud computing. I think we made a big point of defining what we mean by cloud computing. We mean what Amazon means by cloud computing. We mean it's a platform; that means hardware and software; that's right, a box in software -- I'm sorry. It's a computer. It really is a computer. A cloud, by the way, folks, is a lot of computers on the network. It's a lot of boxes and a lot of software. Now, we think the software has to have certain characteristics. We think it has to be virtualized. It has to be elastic. I made a bunch of statements what we think cloud is, but our view and Amazon's view are pretty much the same. So we kind of took what Amazon had, put it -- had an Oracle flavor to it, and put the hardware and the software. So our customers can build private clouds out of this box, or a company like Salesforce or NetSuite or Oracle Corporation, can use these boxes for building public clouds. But I'm sure when Mark gets back and talks to his technical people, they'll let him know in fact, that you do need boxes. You really do. And what we're doing is we think the box should be efficient. It should be fast. It should be reliable. And if you combine the hard -- if you engineer the hardware and the software to work together in the box, you're going to get a much better experience, and I think the Salesforce customers and Salesforce.com would both benefit if they took a close look at Exalogic and got Exalogic and Exadata to run their cloud. And okay, I'll stop right there.

==== Transcribed by Automatic Sync Technologies ====

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RE: Ellison back to Benioff: Salesforce.com's clouds are in a box
snoop0x7b 30th Sep 2010
@Caffeinated85 Depends. If you mean cloud computing in terms of on-demand virtualization and not necessarily on demand virtualization from someone outside of your organization you can build what's referred to as a private cloud.
"At the OracleWorld Open conference in San Francisco, Oracle CEO Larry Ellison responds to remarks made by Salesforce.com's Marc Benioff, who criticized Oracle's Exadata machine with the statement that 'clouds aren't in a box.' Ellison says, 'Salesforce.com runs on 1,500 Dell servers...which are boxes.' "

Not gonna watch the video - but this is so very silly and stupid.

Yeah, DUH. "the cloud" has to run in a box somewhere. Information isn't magical - it doesn't appear out of nowhere.
This is marketing spin at its best (or worst).

Both CEOs are right. The difference comes from an end user use case. Of course companies in the business of cloud computing like Amazon and Salesforce.com would need boxes to create clouds. However, a regular corporation trying to truly leverage the full benefits of cloud computing would not want anything to do with boxes. That is the cloud service provider's responsibility.

Cloud computing is similar to how the mortgage industry separated admin roles of a mortgage between service providers, securing capital, and origination.
@Caffeinated85 Depends. If you mean cloud computing in terms of on-demand virtualization and not necessarily on demand virtualization from someone outside of your organization you can build what's referred to as a private cloud.
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He is the biggest ****face in the World. Makes for a good dart board target. Maybe even better than Steve Monkeyboy Balmer or Steve iHitler Jobs (alias Steve & Steve iDiot Dolls)!!! grin
I was at this one. It was certainly childish, but Larry is talking about enterprise (private) clouds. Companies like mine most certainly do need a $1m 'cloud in a box'. The average small-medium enterprise does not. So a cloud provider could use Exalogic, but a cloud consumer will not. A large corporation would provide the cloud capability (ie dynamically scalable - 'elastic' - services) to deliver up all or part of its functionality.
So @Caffeinated85, you are correct. Both CEOs are right - it was just a p!ssing contest, and Larry absolutely hates to lose.

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