Larry Ellison on Cloud Computing
For those of you who haven't seen this, Oracle founder and CEO Larry Ellison breaks his usual stoic form to explain why he hates cloud computing. In his own words, "they change a term and say they invented technology; forget about innovation." He goes on to say that "the cloud" is water vapor, but rather it's just a computer attached to a network and the delivery of applications over networks -- even on a recurring fee structure -- has been going on for a long time. He may be right about the shifting of terms and everyone trying to be a "cloud computing" provider. But did he have to call cloud advocates "nitwits"? |

Comments (12)
Finally, a video I can show my wife to prove that I'm not the only sane person in the world! Some innovators like to actually create products and services that make life easier for others. Then there are the "nitwits" who just repackage everyone else's hard work with terms to confuse the very users we are attempting to help. Maybe we should create a new term for those type of "nitwits" like "clouder heads".
Thanks for clearing the air Larry.
Gary Lesperance
Posted by Gary Lesperance | December 10, 2009 3:25 PM
I agree with you Gary...
This motion of "Cloud" computing has been around forever and someone, sitting on the toilet, had an epiphany and thought... "I will run in to Balmer and YELL... Cloud Computing, Cloud Computing, Cloud Computing, Cloud Computing; jumping up and down like a monkey and all and we can sell this old technology, with a new name, as "Cloud Computing."
Its a shame that IT has become so stagnant in this era that it has to come to this...
Hey, I want to coin a new phrase... How about "Hardware-Challenged Computing"... Think about it... It could fly... An OS running on a central server, feeding applications and data to machines that consist of nothing but a monitor and keyboard... Hmmm.. No one EVER thought of that one before :-D.
Posted by Joe | December 10, 2009 4:08 PM
I disagree with Ellison, but I sure enjoyed his humor in this video!
Most cloud computing proponents would say it is more than just "a computer attached to a network," as Larry Ellison describes it. Among other things, it offers a level of abstraction and auto-scalability not typically seen on networked computers. The idea of being able to rent computer resources by the hardware utilization (CPU time, disk I/O, network I/O, etc.) instead of by the physical machine is also fairly new.
Nonetheless, I see his point that cloud computing is often hyped as a revolution in technology. I agree and would say that it would be better described at mostly being a new usage model built on top of existing technology.
(I am contracted by M80, working with Microsoft to promote Windows Azure)
Posted by JasonM80 | December 10, 2009 6:11 PM
Very funny video. It was more entertaining than some late night show hosts.
I'm pretty sure Larry and other infrastructure (server and database) CEOs are fearful of cloud computing (aka, SaaS or multi-tenant computing), because fundamentally it represents a 1000-to-1 compression ratio for their customer base, i.e. a multi-tenant app running on a few servers, databases, and internet (er, I mean cloud) connection can service 1000s of customers. In the on-premise world those customers represent sales of 1000s of servers and databases. Even when you factor in that customers run 5-10 apps per server/database, you're still looking at compression ratios in the 100s.
To date the computer industry has had to deal with compression resulting from Mooore's law. Cloud computing will multiply that by 100.
If Larry is not fearful, then it reminds me of when Ken Olsen questioned who really would need a PC. I see the impact of cloud computing growing day by day.
Regardless thanks for the laugh Larry. He's done a masterful job thus far, so I'm pretty sure the last laugh won't be on him. I look forward to see what he (Oracle) does next.
Posted by Poul Nielsen | December 10, 2009 6:35 PM
Paul,
I just wonder what the name will be after Cloud computing... Space computing or Nuclear Computing?
Yes the Cloud business model does have advantages in scaling up or down as needed, the problem is legacy applications and how they can work with this type of business model. Some applications are not built to work well in the cloud business model. Licenses are another issue. Most software is sold on a one license per server. How does a software company figure out how many licenses you are using? Today it was two processors, yesterday it was 14 (got slash dotted) and tomorrow I think I will need 4 Processors. How do you pay for the licenses for this varied of use?
Lastly do you want to put mission critical data on the cloud? Just look to the right of here on the Microsoft/Danger lost of data, Connectwise outage, or Gmail outages.
Lastly the long term advantage of the Cloud Business Model is not in compression like you seem to see it, but helping manage the boom of computers and internet useage. I still remember back in 1993 I could go to Mosaic's home page and see the one or two new websites that launched that day. Now there is so much content being added that the cloud computing model can help forestall the need for even more computers and servers.
Just needs to be more reliable.
I am sorry but I would rather keep mission critical applications (with off site backup) where I know it is and have access to it. If my server goes down I have access to it and the ability to get it back up and running without having to connect to the internet.
Posted by Jim Louis | December 11, 2009 3:51 PM
I've been in the 'IT' world since, 1958. Back then, it was EAM and punched cards, EAM (Electric Accounting Machines) were the bulwark of major businesses and government. Then, in the mid 1950's came the era of the mainframe computers of Sperry Rand, IBM, GE, Honeywell, RCA, Burroughs, NCR, and so forth. The reasons they were all competing, were simple, it was to enable people to do more arithmetic, faster, more accurately, at less cost. It was pure, plain and simple, How many clericals can you replace, with these machines? It was like the Industrial Revolution all over again, except faster and faster, and cheaper and cheaper.
It went through vogues of the 'Service Bureau' to 'Data Center' to 'Departmental' to 'My Company's Computer' and then the ultimate shift in IT, COMPLETE FREEDOM,,, the 'PC ERA',,,,,, Nirvana!!!!!
This was and IS a great, and swift evolution of modern science, logic, mathematics, and physics. The impact on mankind is immeasurable, both beneficial and harmful, simple fact is that none of the 'hard sciences' care much about people. So where does that leave us (people) in this ever accelerating IT world? And right now, it is not a happy answer.
IT (Information Technology) has taken such giant leaps ahead of the 'Social Technology' and the 'Human Technology' that this time, most individuals today are at best a little confused, as to what they have as a future, or what was their past, or what it is that they are today!
Getting back to the 'Cloud' topic,,, my simple point is this. We are forever re-describing the IT problem, and migrating to 'Cloud Computing' is but one more iteration in this ongoing process. In of itself, it does not change the problem.
BUT, the GREAT thing about change is that it makes PEOPLE THINK. And that is what is important, to make change successful and people evolve.
Posted by Dick B | December 12, 2009 3:15 AM
Ellison doing what Ellison does best: lie and misrepresent. Oracle Cloud = Oracle Hot Air.
A delightful misdirection. Try to redefine cloud to be what "we" have been doing for years, accept the redefinition and "we" are doing cloud. Oracle still can't get hosting even remotely right, so how could they be even remotely "cloud"? Because the IP address isn't on prem? Ah, that means all the hosting providers are cloud providers, right?
Reminds me of how Oracle put Sybase out of business: Sybase had referential integrity, Oracle had "notational" referential integrity (translation: programmer commented the code). But most of the decision makers were "high level" managers who did not (still don't) understand that technology is their business differentiator.
Lies, damned lies, and Oracle Marketing.
Would I be correct in concluding that, By LE's definition, MySQL has been "in the cloud" for LONGER THAN ORACLE?
Posted by Daemeon | December 13, 2009 2:49 PM
I just wonder how Oracle, SAP and Microsoft plan to upgrade their thousands and thousands of customers on varying platforms, db's, versions and os's 'overnight' like Salesforce.com and Netsuite do...? How do you like them clouds?
Posted by James | December 15, 2009 6:51 AM
I'd like to address a couple of comments:
Jim Louis wrote:
> I am sorry but I would rather keep mission
> critical applications (with off site backup)
> where I know it is and have access to it. If
> my server goes down I have access to it and
> the ability to get it back up and running
> without having to connect to the internet.
Good point. However, anything that can happen to servers in the cloud can also happen to an on-premises server. In fact, if it happens in the cloud, it is even less to have an impact since an important value proposition of cloud computing is server-failover (if one server goes down, a second server is automatically deployed to continue hosting your applications, uninterrupted). Even if that procedure somehow fails, IT staff are on-hand and available 24/7 to monitor the servers and get them back up and running immediately as well.
James wrote:
> I just wonder how Oracle, SAP and Microsoft
> plan to upgrade their thousands and thousands
> of customers on varying platforms, db's,
> versions and os's 'overnight' like
> Salesforce.com and Netsuite do...?
I can't speak for Oracle and SAP, but Microsoft offers both cloud computing services, such as Windows Azure and SQL Azure, and locally-installed software products, such as the various flavors of the Windows OS and SQL Server. One is not meant to replace another.
(I am contracted by M80, working with Microsoft to promote Windows Azure)
Posted by JasonM80 | December 15, 2009 3:59 PM
Ellison is correct in that the buzzword has little substance beyond some new entities thriving with a shared/hosted approach.
As to comments here...
- do ya think maybe we could put "Internet2" (snicker) on SNA/SDLC?
- 'locally run' may or not mean 'more reliable' but the sad fact is most provders with a clear cost advantage are slow to remedy problems meaning locally run can at least be addressed (as opposed to waiting and hoping when renting)
- makes people think?!? no way. While new technlogy and/or terminology might make we techs think, the sad reality is the majority of users shut off their basic thought processes when faced with a technical issue. Ignorance is bliss and our (tech services providers) mere existence is testament. The 'iterations' contention is indeed valid - across most IT disciplines you could follow a similar path of 'evolution'. Either argument is valid. Afterall, it is still all 1s and 0s.
- as to 'lie and misrepresent' - you're a marketing person attending week-long conferences debating the next term, aren't you?
Posted by Paul G | December 16, 2009 3:51 PM
to JasonM80
renting computer resources new??? try early 80's time share ... cloud is simply a re-branding of time share ...
Posted by Jmb | December 25, 2009 2:37 PM
I remember using a system that provided a platform where you could abstract hte physical layers of storage, memory and O/S, choose your allowed language(s) and code for the platform approrpiately. It scaled nicely in an organized and well understood and controlled fashion, it told you when your app or system was about to breach a limitation offering the developer/owner/stakholder the opportunity to acquire more room for the system. It was fast, you could re-allocate resources with a couple of keystrokes.
Some of you might even remember this innovative and stable environment. We called it time-sharing, it ran on maniframes and mini-computer platforms, and it still does if you use a z-system from IBM and host guest O/Ses you can do it too v- or more likely your large company already is.
Just sayin'. Everything old is new again.
Cloud, SaaS, Colo, Provisioning, Time-Sharing - it's all the same under the hood - like VMWare, logical partitioning and tele-processors.
Posted by SaS | January 4, 2010 3:31 PM