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 Death of the Corporate Data Center

NEW YORK (TheStreet) -- The big (CRM) Dreamcast conference, co-starring Green Day, Huey Lewis and a host of other celebrities (including our own Jim Cramer), had this message for the market:

Fake cloud is beating private cloud and, in the process, killing the corporate data center.

For the last several years the cloud industry's assumption was that once big enterprises finished experimenting with the public cloud, they would want to put their crown jewels -- the database-driven applications that run big business -- into private clouds under their control.

But that's not what is happening.

Businesses are putting those applications into Software as a Service (SaaS) offerings like those of Salesforce and NetSuite (N), which offer some of the savings of cloud but aren't really based on cloud hardware, rather than hosting high-end servers from Oracle (ORCL).

At stake is the future of key enterprise applications. These include Customer Resource Management, or CRM, which describes both customers and prospects; Enterprise Resource Planning, ERP, which shows what you have available to get the job done, and Human Capital Management, HCM, used to get and keep the best employees.

These are the kinds of database-driven applications Oracle made its living on in the old client-server world through data centers located on the premises of its customers. Cloud technology, in which racks upon racks of commodity hardware are turned into a single virtual computer with infinite scale and at modest cost, was an existential threat to this business model.

Oracle's response is called Oracle Cloud, but it mainly consists of its own Exadata servers along with Oracle software, at an Oracle price.

1 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
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs