Oracle clouds never go down, says Larry Ellison
- Reference: 1670945411
- News link: https://www.theregister.co.uk/2022/12/13/oracle_clouds_never_go_down/
- Source link:
Founder and CTO of the Texas-based business, Ellison bottles the Koolaid he asks employees to drink, but last night on a conference call to discuss earning for [1]Q2 ended 30 November , he appeared to have a bellyful himself.
"Our cloud is very secure and extremely reliable," he told financial analysts. "It doesn't go down."
[2]
That's not strictly true. Britain's heatwave in the summer saw [3]servers hosted by both Google and Oracle drop offline in July , albeit on the back of record breaking temperatures, where the mercury reached 40.3˚C (104.5˚F) in east England.
[4]
[5]
Ellison was trying to explain why Tokyo Stock Exchange was among the customers to have chosen Oracle's cloud infrastructure in the past quarter, as did FedEx, Deutsche Bank, and Vodafone as well.
"In fact, my favorite quote from a big phone company in the US was the difference between Oracle's cloud and the other clouds are simply that Oracle cloud doesn't go down. I think that's a very important issue when you have enterprise applications like a stock exchange where you can't ever go down. If you're a phone company, the phone system can't go down."
[6]
For the quarter, Oracle reported total revenue of $12.275 billion, up 18 percent year-on-year, despite the strength of the US dollar. Within this, Cloud Infrastructure was up 53 percent to $1 billion – well off the pace with AWS and Microsoft.
Ellison said his business had signed infrastructure contracts with "multiple customers exceeding $1 billion… that's ben added to our backlog," he said. "We now have 22,000 infrastructure customers, we have a total of 55 regions, public regions as well as national security and other types regions. That's more than AWS or Microsoft or anybody, which may surprise some people."
For context, AWS reported $20.5 billion in sales during its most recent full quarter ended September 30, and Microsoft's Intelligent Cloud brought in $20.3 billion.
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Unperturbed, he continued to discuss the decision by Nvidia to move AI/ML workloads to Oracle's cloud in his own inimitable way, "because it turns out we're really good at that, we're better than any of the other clouds, which may surprise some people."
It almost seemed to surprise Larry himself.
If there was a theme to the Q2 numbers, it is that Oracle wants investors to know how successful it is in the cloud, and how nicely Oracle is playing with others following the tie up with Microsoft earlier this year.
"We think the future of cloud is not four-walled gardens, AWS, Microsoft, Google and Oracle. We think those clouds are all going to interconnect. And then customers will pick the most appropriate service for their particular needs and mix and match between the clouds."
After dedicating a big chunk of his speech to Oracle's infrastructure clouds, he seemed to remember that the company actually had a wider portfolio.
"In applications – I'll try to do this quickly – we're just winning in the back office. We have 22,000 customers in infrastructure and the cloud. We have 11,000 Fusion ERP and HCM customers alone in applications, just Fusion customers. We have 11,000 now. We have probably close to 30,000 NetSuite customers on top of that. So, we have a lot of customers and applications. We’ve been in the applications cloud business for longer than we’ve been in the infrastructure cloud business."
How did Oracle do elsewhere? Cloud services and license support was up 14 percent to $8.598 billion; software license and on-premises license grew 16 percent to $1.435 billion, hardware was up 11 percent to $850 million, and services jumped 83 percent to $1.392 billion.
[8]Pentagon shares nine billion cloudy dollars between AWS, Google, Microsoft, Oracle
[9]Equinix to cut costs by cranking up the heat in its datacenters
[10]US commerce bosses view EU rules as threat to its clouds
[11]AWS CEO Adam Selipsky promises 'Zero ETL' future in re:Invent keynote
[12]University orders investigation into Oracle finance disaster
Broken down by product more specifically, total cloud revenue was up 43 percent to $3.8 billion, including the $1 billion contribution from infrastructure and $2.8 billion from cloud applications, itself up 40 percent. Fusion Cloud jumped 23 percent to $600 million. NetSuite Cloud was up 25 percent to $600 million. And Cerner contributed $1.5 billion.
Oracle reported an operating profit of a little more than $3 billion versus an operating loss of $824 million a year earlier after results were adversely impacted by the payment of a judgment related to a decade-old dispute surrounding former CEO Mark Hurd's employment.
So Oracle is clearly making some headway in the cloud, but is still leaps and bounds behind its biggest infrastructure rivals, which is perhaps why Ellison feels the need to overcompensate by saying silly things. ®
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[1] https://investor.oracle.com/investor-news/news-details/2022/Oracle-Announces-Fiscal-2023-Second-Quarter-Financial-Results/default.aspx
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y5ivsE5bLmKIIa5Bwj-WnQAAABQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2022/07/19/google_oracle_cloud/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y5ivsE5bLmKIIa5Bwj-WnQAAABQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y5ivsE5bLmKIIa5Bwj-WnQAAABQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y5ivsE5bLmKIIa5Bwj-WnQAAABQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y5ivsE5bLmKIIa5Bwj-WnQAAABQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2022/12/08/joint_warfighting_cloud_capability_awarded/
[9] https://www.theregister.com/2022/12/07/equinix_hot_datacenter/
[10] https://www.theregister.com/2022/12/02/us_eu_cloud_regulation/
[11] https://www.theregister.com/2022/11/29/aws_selipsky_reinvent_keynote/
[12] https://www.theregister.com/2022/11/23/edinburgh_university_oracle_investigation/
[13] https://whitepapers.theregister.com/
just resting
Pining for the fjords - where cooling is free and inexhaustible - no doubt.
Re: just resting
'twas but a scratch!
Or
Perhaps, stunned
The sun did not set on the British empire
It was all around the globe so the sun was always shining on some part of it.
Maybe this is what Ellison means: they have many data centers, not all of them have been down at the same time.
IaaS loves to blame the customer
That's something that surprised me a lot back when I first started using cloud 12 years ago now(haven't used IaaS in a decade now). Some of their SLAs(perhaps most) are worded in ways to say, oh well if this data center is down it's not really down for you unless you can't fire up resources in another data center. If you don't have your data in multiple data centers well that's your fault and we don't owe you anything.
Which to some degree makes sense, customers using cloud and not knowing how to do it "right" (because doing it right will just make it more expensive in many cases and certainly more complex). Most traditional providers(either datacenter or network or infrastructure) will of course advise you similarly but they will often take much greater responsibility when something bad happens even if the customer didn't have better redundancy.
Myself I haven't been hosted in a data center(for work) that had a full facility failure since 2007. That's 15 years of co-location with zero facility outages. So forgive me if I'm not going to get super stressed over not having a DR site. That data center in 2007 (Fisher Plaza in Seattle, and I moved the company out within a year of starting my new position there) remains the only facility I've been with that had serious issues going back to 2003.
Of course not all facilities are the same. The facility I use for my personal co-location HAS had several power outages in the past decade(went a good 5-6 years before the first one when I became a customer). But they are cheap, and otherwise provide decent service. I can live with those minor issues(probably still better uptime than Office365 over the years even with my SINGLE server, not that I'm tracking). I need only to walk into that facility to immediately rule it out for anything resembling mission critical or anything resembling not fully active-active (across multiple facilities) operations. They don't even have redundant power(facility dates to the 90s).
I've said before I would probably guesstimate that I'd rule out 60-75% of data centers in the world for mission critical stuff(Bing tells me there are ~2500 global data centers). All of the big cloud providers design their systems so their facilities can fail, it's part of their cost model, so naturally I am repelled by that.
so how long before Oracle is taken over by Microsoft?
Not bought out but with M$ in effect being in control?
He is right!
They pour down! You cannot call that speed "go".