NEW YORK ( TheStreet) -- Salesforce.com (CRM - Get Report) CEO Marc Benioff is trying to pull off one of the greatest tricks in tech, convincing customers he has the platform of the future while at the same time trying to build it.
Salesforce.com has long sold itself as "cloud," and had its system ranked among major cloud vendors. This despite the fact it runs, and has run, on Oracle (ORCL - Get Report) all this time. Nothing dishonest -- "cloud" didn't exist as a thing in 1999, when the company was founded.
By renting its Oracle-based software as a service, on its own hardware, CRM delivered value for money. As the cloud metaphor emerged, first from Yahoo! (YHOO) and Google (GOOG), then through Amazon.Com (AMZN) to Rackspace (RAX), CEO Benioff saw he was delivering the end result of cloud -- applications you rent and host elsewhere -- way ahead of the pack.
But Oracle client-server is not a cloud. Real cloud services cost a tiny fraction of what Oracle charges for the software and hardware needed to host scaled applications. As Oracle CEO Larry Ellison recognized this and began developing his own cloud strategy, Benioff saw it would be natural for Oracle to then start hosting its own applications, and squeeze his company out.Does Oracle have cloud today?