This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Audacity of Oracle Cloud

Even if you wanted to switch, who could you switch to? Microsoft (MSFT)? IBM (IBM)? OK, name three. And you're talking about a multiyear plan that might cost your CEO his job because it might not completely work. So even what looks from the outside like monopoly control looks from the inside like a devil's bargain that must be made.

Oracle has built a virtually impregnable moat around its customers. They know it, Oracle knows it. If you were Ellison, you'd laugh like Guy Fawkes too.

Real cloud threatens to destroy all this. Amazon's (AMZN) EC2 can take workloads directly off these enterprise systems. VMWare (VMW) and Red Hat (RHT) offer software that can let you do the same on your hardware, in your IT department. In many cases this is open source software. Rackspace's (RAX) sponsorship of an open source cloud infrastructure, OpenStack, has taken it from a sleepy San Antonio, Texas, Web host to an enterprise powerhouse in just three years.

The savings from real cloud are just incredible. And it practically scales to infinity. No more per-server licensing fees. No more fancy servers. No more wondering whether your systems can handle the load. Maybe, some day, no more systems.

What most big companies are doing right now with cloud is they are putting their toes in. They have their own little clouds on-premise. They may take some new customer-facing application and host it at Amazon. But they know cloud is compelling, because it scales like their enterprise systems can't. And, in comparison, it's cheap as chips.

Oracle is telling these customers that cloud is just software as a service, that it's just another way to arrange their current systems, that it's an evolutionary step rather than a revolution. That they will handle it. That you, Mr. CIO, don't have to think about cloud.

Just sign here.

I have no doubt many Fortunate 500 CIOs will buy this argument. Better the devil you know. But it's not a plan for growth. Customers who have choices now, customers just starting to scale and facing the wonders of cloud, won't be fooled.

If you can start with cloud, from a blank sheet of paper, you're going to want real cloud. You're going to want commodity hardware. You're going to want open source. You're going to demand choices. And given a choice between Oracle Cloud and real cloud, given the way corporations are evolving into it, Oracle Cloud is going to be a very hard sell.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
(I have no investments in Oracle. I do own some IBM, and some Microsoft, and some Amazon, and some Google. But no Oracle. No Red Hat either, nor VMWare. No Rackspace.)
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ORCL $39.86 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs