Cloud Computing, Smaller Players & Oracle

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Cloud Computing, Smaller Players & Oracle

July 16, 2010

GLG Expert Contributor
Get Off Of My Cloud
fudge.org

Summary

Though size may matter in winning large enterprise’ business through an end to end solution, the competition is still open for medium to smaller size enterprise’ business.   . 

After the Sun acquisition, Oracle is now in a good position to offer comprehensive cloud solutions to service providers. It has a play in all three service models (SAAS, PAAS, IAAS) and products to satisfy all the key components that a service provider needs to offer cloud services. 
Analysis

In the last few years, especially since the introduction of web 2.0, a new trend in technology has taken off where the enterprises in the need to cut cost move their onsite computing to a shared off-site datacenter location. This new trend is called Cloud computing. According to IDC, the demand for Cloud computing services will be $44.2B by 2013 and will outpace traditional IT spending. Still the industry is in early stages and the adoption for cloud service by enterprises is ramping up. Cloud Computing technology has become popular in recent economic tumultuous times with both large and small enterprises, where due to slow down in business spending, corporations are reducing budgets wherever they can, and one such area is in IT spending. The CIOs want to get more bank for their buck and at the same time run a smooth business operation, and this can achieved through Cloud computing. There many services provider who are now offering pay as you go services and many vendors have the opportunity to sell their hardware and software solutions to the service providers. There are two main options available, either an enterprise can share the datacenter with other enterprises and be on a public cloud or they can have their own datacenter to have a private cloud. Though public clouds are a new phenomenon, private clouds have existed for quite some time. There are also hybrid solutions available between private and public cloud but that depends on service provider’s solution offering.

Though size may matter in winning large enterprises’ business through an end to end solution, the competition is still open for medium to smaller size enterprises’ business.   The key differentiators between the cloud service providers will be their ability to address customer need around ease of operation, provisioning and engineering services, performance of services, addressing securities issues and perhaps the most important will customer service and turnaround time of customer issues. 
Providing end to end services can be quite Capex intensive for a smaller size service provider. This cost includes managing a data center, hardware (network equipment, storage, servers, etc.), Software (Operating systems, apps, virtualization software, etc.).   Smaller size service providers should offer niche customized services that addresses the needs of smaller to medium size enterprises in the public cloud, these enterprises are looking for top notch service that won’t disrupt their operations but cannot afford the pricing structure of a large service provider. Though maintaining the network is the key service that won’t disrupt enterprises operations, providing enhanced security services, value added software and middleware that can help enterprises launch and maintain their apps faster and more efficiently, and a exceptional customer service can also help the smaller players in winning business against the larger providers.
As for Oracle’s play in Cloud market, after the Sun acquisition, Oracle is now in a good position to offer comprehensive cloud solutions to service providers. It has a play in all three service models (SAAS, PAAS, IAAS) and products in house to satisfy all the key components that a service provider needs to offer cloud services. It partners with Amazon, which is the largest service provider and also partners with VMware, in addition to the products that it acquired from Sun acquisition on virtual solutions. Oracle has many partners and the more information is available on (http://www.oracle.com/technology/tech/cloud/index.html). Oracle launched a cloud computing tour earlier this year and is getting serious about going after the cloud computing market. So based on a high level analysis, Oracle looks to be well positioned to play in the Cloud market, though the competition is also big and is the like of IBM, HP, Cisco and many others. Oracle has a history of acquiring companies that it deems will add value to the overall solutions, so as the adoption for cloud services from enterprises grow in coming future, look out for Oracle to acquire smaller companies in the Cloud Industry. 

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