Business · Cloud

Oracle works toward capturing enterprise Cloud IaaS demand

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The enterprise cloud market is still shows a widely untapped potential. A significant portion of this potential comes from the demand generated by the legacy applications that are sitting in the myriad of corporate data centers. The footprint from these legacy workloads alone is staggering. Start adding in the workloads that sit in secondary data centers that often do not get included in many metrics and one can quickly see the opportunity.

ORACLE STARTS FROM THE GROUND UP

At Tech Field Day’s Cloud Field Day 3, I had the opportunity to meet with the team from Oracle Cloud Infrastructureto discuss their Infrastructure as a Service (IaaS) cloud portfolio. Oracle is trying to attract the current Oracle customer to their cloud-based offerings. Their offerings range from IaaS up through Software as a Service (SaaS) for their core back-office business applications.

The conversation with the Oracle team was pretty rough as it was hard to determine what, exactly, that they did in the IaaS space. There were a number of buzzwords and concepts thrown around without covering what the Oracle IaaS portfolio actually offered. Eventually, it became clear during a demo, in a configuration page what the true offerings were: Virtual Machines and Bare Metal. That’s a good start for Oracle, but unfortunate in how it was presented. Oracle’s offering is hosted infrastructure that is more similar to IBM’s SoftLayer(now called IBM Cloud) than Microsoft Azure, Amazon AWSor Google Cloud.

ORACLE DATABASE AS A SERVICE

Beyond just the hardware, applications are one of the strengths of Oracle’s enterprise offerings. And a core piece of the puzzle has always been their database. One of the highlights from the conversation was their Database as a Service (DBaaS)offering. For enterprises that use Oracle DB, this is a core sticking point that keeps their applications firmly planted in the corporate data center. With the Oracle DBaaS offering, enterprises have the ability to move workloads to a cloud-based infrastructure without losing fidelity in the Oracle DB offering.

Digging deeper into the details, there were a couple interesting functions supported by Oracle’s DBaaS. A very cool feature was the ability to dynamically change the number of CPUs allocated to a database without taking an outage. This provides the ability to scale DB capacity up and down, as needed, without impact to application performance.

Now, it should be noted that while the thought of a hosted Oracle DB sounds good on paper, the actual migration will be complicated for any enterprise. That is less a statement about Oracle and more to the point that enterprise application workloads are a complicated web of interconnects and integrations. Not surprisingly, Oracle mentioned that the most common use-case that is driving legacy footprints to Oracle Cloud is the DB. This shows how much pent-up demand there is to move even the most complicated workloads to cloud. Today, Oracle’s DB offering runs on Oracle Cloud Infrastructure (OCI). It was mentioned that the other Oracle Cloud offerings are moving to run on OCI as well.

Another use-case mentioned was that of High-Performance Computing (HPC). HPC environments need large scale and low latency. Both are positive factors for Oracle’s hardware designs.

While these are two good use-cases, Oracle will need to do things that attract a broader base of use-cases moving forward.

THE CIO PERSPECTIVE

Overall, there seems to be some glimmers of light coming from the Oracle Cloud offering. However, it is hard to get into the true differentiators. Granted that Oracle is playing a bit of catch-up compared with other, more mature cloud-based offerings.

The true value appears to be focused on existing Oracle customers that are looking to make a quick move to cloud. If true and the two fundamental use-cases are DBaaS and HPC, that is a fairly limited pool of customers when there is significant potential still sitting in the corporate data center.

It will be interesting to see how Oracle evolves their IaaS messaging and portfolio to broaden the use-cases and provide fundamental services that other cloud solutions have offered for years. Oracle does have the resources to put a lot of effort toward making a bigger impact. Right now, however, it appears that the Oracle Cloud offering is mainly geared for existing Oracle customers with specific use-cases.

Business · CIO · Data

These four things will close the gap between the CMO & CIO

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The landscape for marketers is shifting dramatically. In order for marketers to be successful, they must rely on technology and data. The bottom line is that the Chief Marketing Officer (CMO) needs the Chief Information Officer (CIO) and vice versa. We have reached the inflection point where this relationship is no longer a ‘nice to have’ but a requirement for any organization serious about their marketing efforts.

THE CMO/ CIO RELATIONSHIP

The more time I spend with the Chief Marketing Officer (CMO) and marketing folks, the more I realize how how wide the gap is between CMO and the Chief Information Officer (CIO)/ Information Technology (IT) organization. That may sound dramatic. However, there is a bright opportunity that lies beyond the current state.

Make no mistake that the demand for a relationship between the CMO and CIO is stronger than ever. Companies are clamoring to better understand their customers in an effort to create stronger bonds and greater revenue streams.

THE MARKETING EVENT OPPORTUNITY

A couple of weeks ago, I spent time at Oracle’s Modern Marketing Experience (MME) in Las Vegas. In addition to the keynotes and sessions, I was invited to join the ‘CMO Experience’ luncheon. Keep in mind that this is a marketing conference and I am looking at it from the CIO’s perspective. Oracle MME was a great opportunity to learn more about today’s marketing challenges and opportunities from a marketers perspective. Unfortunately, I was one of the few CIOs there.

Instead of showcasing a number of sexy startups and their marketing efforts, Oracle presented three traditional enterprises that are all more than 100 years old: Sears, Clorox and Western Union. All of three of these enterprises leveraged technology and data to change how they engaged with customers. The not-so-subtle message here is: If a 100-year-old company can do it, so can you. But you cannot do it without technology and data. Hence where the CIO comes in.

FOUR STEPS TO CLOSE THE CMO/ CIO GAP

There are four core things that will close the gap between the CMO & CIO.

  1. Relationship: All good business relationships start with a personal relationship. The CMO and CIO must spend time and get to know each other. From this personal relationship, the collaboration between the two organizations can flourish.
  2. Understand the Business: Too many IT leaders only have a cursory understanding of what the business does, how it makes money, how it spends money. In order to truly provide value, IT needs to understand the entire value chain.
  3. Understand the Customer: Unfortunately, many CIOs and IT leaders do not have regular interactions with customers. Through regular, first hand experiences, the CIO can understand what drives the customer and how best to engage.
  4. Leverage Data: There are an increasing number of data streams that impact insights into the customer and business. Many of these streams come from outside the organization (vs. transactional data). Look for ways to integrate and correlate this data in a meaningful way to increase the value to the business and customer.

Each of these four things are both symbiotic of each other and build upon each other. For example, getting access to customers only comes after building strong relationships and trust with fellow c-suite executives. While leveraging data builds a more holistic picture of the customer.

The bottom line is that the gap between the CMO and CIO needs to close. The sooner the gap closes, the sooner the company and ultimately, the customer will benefit.

Business · CIO · Cloud · Data

Are the big 5 enterprise IT providers making a comeback?

Not long ago, many would have written off the likes of the big five large enterprise IT firms as slow, lethargic, expensive and out of touch. Who are the big five? IBM (NYSE: IBM), HP (NYSE: HPQ), Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORCL) and Cisco (NASDAQ: CSCO). Specifically, they are companies that provide traditional enterprise IT software, hardware and services.

Today, most of the technology innovation is coming from startups, not the large enterprise providers. Over the course of 2015, we have seen two trends pick up momentum: 1) Consolidation in the major categories (software, hardware, and services) and 2) Acquisitions by the big five. Each of them are making huge strides in different ways.

Here’s a quick rundown of the big five.

IBM guns for the developer

Knowing that the developer is the start of the development process, IBM is shifting gears toward solutions that address the new developer. Just look at the past 18 months alone.

  • February 2014: Dev@Pulse conference showed a mix of Cobol developers alongside promotion of Bluemix. The attendees didn’t resemble your typical developer conference. More details here.
  • April 2014: Impact conference celebrated 50 years of the mainframe. Impact also highlighted the SoftLayer acquisition and brought the integration of mobile and cloud.
  • October 2014: Insight conference goes further to bring cloud, data and Bluemix into the fold.
  • February 2015: InterConnect combines a couple of previous conferences into one. IBM continues the drive with cloud, SoftLayer and Bluemix while adding their Open Source contributions specifically around OpenStack.

SoftLayer (cloud), Watson (analytics) and Bluemix are strengths in the IBM portfolio. And now with IBM’s recent acquisition of BlueBox and partnership with Box, it doesn’t appear they are letting up on the gas. Add their work with Open Source software and it creates an interesting mix.

There are still significant gaps for IBM to fill. However, the message from IBM supports their strengths in cloud, analytics and the developer. This is key for the enterprise both today and tomorrow.

HP’s cloudy outlook

HP has long had a diverse portfolio that addresses the needs of the enterprise today and into the future. Of all big five providers, HP has one of the best matched to the enterprise needs today and in the future.

  • Infrastructure: HP’s portfolio of converged infrastructure and components is solid. Really solid. Much of it is geared for the traditional enterprise. One curious point is that their server components span the enterprise and service provider market. However, their storage products are squarely targeting the enterprise to the omission of the service providers. You can read more here.
  • Software: I have long since felt that HP’s software group has a good bead on the industry trends. They have a strong portfolio of data analytics tools with Vertica, Autonomy and HAVEn (being rebranded). HP’s march to support the Idea Economy is backed up by the solutions they’re putting in place. You can read more here.
  • Cloud: I have said that HP’s cloud strategy is an enigma. Unfortunately, discussions with the HP Cloud team at Discover this month further cemented that perspective. There is quite a bit of hard work being done by the Helion team, but the results are less clear. HP’s cloud strategy is directly tied to OpenStack and their contributions to the projects support this move.

HP will need to move beyond operating in silos and support a more integrated approach that mirrors the needs of their customers. While HP Infrastructure and Software are humming along, Helion cloud will need a renewed focus to gain relevance and mass adoption.

Microsoft’s race to lose

Above all other players, Microsoft still has the broadest and deepest relationships across the enterprise market today. Granted, much of those relationships are built upon their productivity apps, desktop and server operating systems, and core applications (Exchange, SQL, etc). There is no denying that Microsoft probably has relationships with more organizations than any of the others.

Since Microsoft Office 365 hit its stride, enterprises are starting to take a second look at Azure and Microsoft’s cloud-based offerings. This still leaves a number of gaps for Microsoft; specifically around data analytics and open standards. Moving to open standards will require a significant cultural shift for Microsoft. Data analytics could come through the acquisition of a strong player in the space.

Oracle’s comprehensive cloud

Oracle has long been seen as a strong player in the enterprise space. Unlike many other players that provide the building blocks to support enterprise applications, Oracle provides the blocks and the business applications.

One of Oracle’s key challenges is that the solutions are heavy and costly. As enterprises move to a consumption-based model by leveraging cloud, Oracle found itself flat-footed. Over the past year or so, Oracle has worked to change that position with their cloud-based offerings.

On Monday, Executive Chairman, CTO and Founder Larry Ellison presented Oracle’s latest update in their race for the enterprise cloud business. Oracle is now providing the cloud building blocks from top to bottom (SaaS PaaS IaaS). The message is strong: Oracle is out to support both the developer and business user through their transformation.

Oracle’s strong message to go after the entire cloud stack should not go unnoticed. In Q4 alone, Oracle cloud cleared $426M. That is a massive number. Even if they did a poor job of delivering solutions, one cannot deny the sheer girth of opportunity that overshadows others.

Cisco’s shift to software

Cisco has long since been the darling of the IT infrastructure and operations world. Their challenge has been to create a separation between hardware and software while advancing their position beyond the infrastructure realms.

In general, networking technology is one of the least advanced areas when compared with advances in compute and storage infrastructure. As cloud and speed become the new mantra, the emphasis on networking becomes more important than ever.

As the industry moves to integrate both infrastructure and developers, Cisco will need to make a similar shift. Their work in SDN with ACI and around thought-leadership pieces is making significant inroads with enterprises.

Summing it all up

Each is approaching the problem in their own ways with varying degrees of success. The bottom line is that each of them is making significant strides to remain relevant and support tomorrow’s enterprise. Equally important is how quickly they’re making the shift.

If you’re a startup, you will want to take note. No longer are these folks in your dust. But they are your potential exit strategy.

It will be interesting to watch how each evolves over the next 6-12 months. Yes, that is a very short timeframe, but echoes the speed in which the industry is evolving.