Larry Ellison opens Oracle's OpenWorld 2016 with the bold declaration that "Amazon's lead is over," and announces plans to go after the Infrastructure-as-a-Service (IaaS) market next year.
Currently, Amazon Web Services (AWS) leads the cloud infrastructure market, with Microsoft Azure, Google Cloud Platform, and IBM trailing behind. Oracle’s public cloud didn't have enough market share to even be included the most recent version of Gartner’s cloud infrastructure as a service (IaaS) Magic Quadrant.
Amazon launched the EC2 service for renting out VM instances by the hour in 2006, and, in the most recent quarter, the AWS portfolio earned Amazon $2.88 billion in sales and $718 million in operating income.
“But now we’re aggressively moving into infrastructure, and we have a new generation of data centers that we’re building around the world,” Ellison says.
For one example, Oracle is making available the Dense IO Shape (a virtual-machine type in this Oracle second-generation of cloud) which offers 28.8TB, 512GB, and 36 cores-- at a price of $5.40 per hour. More than 10X the input-output capacity of Amazon AWS, specifically the i2.8xlarge, says Ellison.
The founder-turned-CTO also says Oracle currently faces two main competitors-- Amazon for infrastructure and Workday for applications. This represents what Ellison describes as a "breathtaking change," since historically the two main Oracle rivals were IBM and SAP.
How will Oracle rival Amazon? First off, the Oracle Cloud Platform public cloud and virtual cloud network offerings get bare metal servers, providing means for customers to step to the cloud without moving away entirely from on-premises infrastructure. The Oracle Cloud Platform also gets support for Oracle MySQL Cloud Service, Oracle Big Data Cloud Service and Oracle Event Hub Cloud Service, alongside other Oracle PaaS offerings.
In the meantime the Ravello Cloud Service allows organisations to run enterprise VMware and kernel-based virtual machine workloads in a public cloud without need for changes or reconfiguration, the Oracle Container Cloud allows the deployment of application stacks through Docker compatibility and OracleFastConnect helps the connection of datacentres to the cloud.