The Six Five team discusses Oracle Database @AWS News
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Transcript:
Patrick Moorhead: So a little background here. AWS has been around for 15 years. They invented cloud computing as a service. And for about 10 years, they have been trying to kill off the Oracle database. And you might say, oh Pat, that’s such a strong comment. Why would you say something like that? Well, maybe it’s because AWS has a database called Redshift and Oracle’s primary color is red and they might want customers to shift from Oracle to Redshift. And I would say the last seven reinvents that I’ve either watched online or attended, maybe not last year, there were direct swipes at Oracle, particularly when Andy Jassy was delivering the message.
So hopefully you believe me that they were trying to kill Oracle. Well, here’s the deal. AWS did a deal where it is going to put Exadata racks. So literally, non-AWS infrastructure inside of an AWS hyper scaler data center. Let that sink in. Even in video with DGX cloud are not DGX boxes. I believe this could be the only non-AWS infrastructure inside an AWS hyper scaler data center. So why on earth would AWS do this? So, it’s because first of all, they’re not going to kill off the Oracle database. We always talk about the 80% of data that’s on prem for 15 years into the cloud. A lot of that data is sitting inside of an Oracle database. AWS wants to wrap every ancillary service, whether it be Bedrock, machine learning, 100 services around that, and they need Oracle data to light that up and that’s why they want to do this. Why does Oracle want to do that? What’s the benefit? Oracle database can be the lingua franca. Sorry, speak German, not French. It essentially becomes my favorite term, Dan, what am I going to say? Multi-cloud fabric.
Daniel Newman: Oh, I thought you were going to say connecting the back to the front. With multi-cloud fabric.
Patrick Moorhead: Yeah, the multi-cloud fabric. Essentially, if you standardize an Oracle database, you can access services from Google Cloud, AWS, Azure, and of course inside OCI and baby, on-prem. Pretty cool. What is the biggest inhibitor right now to enterprise data? Sorry, enterprise AI, it’s getting your data act and gear. So I brought this up on Yahoo Finance. Essentially this puts Oracle in the position to be the AI data broker for those very large, very regulated and highly secure organizations. My final comment’s going to be on security, where you know what, every vendor out there says they’re the most secure. And I’ve had a couple of vendors do the wink, wink, nudge, nudge to me on we do the three-letter acronym agencies out there. Freaking Oracle got the CIA on stage to talk about how secure Oracle was. I’m going to read this quote from La’Naia Jones, the CIO of the CIA. Say that 10 times fast. The CIO of the CIA, I can barely say it twice. She said, “We appreciate that Oracle cares as much about security as us.” Dan, does it get any better than that? Any bigger?
Daniel Newman: What customer number was the CIA for Oracle?
Patrick Moorhead: Number one, thank you for asking me. Anyways, there was a lot of stuff that went on. I mean, we talked to Steve Miranda, who runs Oracle Fusion. We talked to leadership, CEO, Evan Goldberg of NetSuite. And maybe one of the topics you might want to talk about is AI pricing.
Daniel Newman: Yeah, well that’s a really interesting one as well, Pat. I mean, you hit the database news really. Look, so Pat, this is a bit of an inflection on our whole hybrid and lots of workloads are on-prem. All these companies that have sort of leaned hard on that. A lot of the conversations about repatriation interesting here. What’s the biggest on-prem workload for most enterprises today? It’s their ERP. It’s going to be their core enterprise data workloads. That’s ERP CRM workloads sometimes if you have older systems, but those are often in the clouds already. Supply chain data, HR data, other things that you’ve run on-prem. And of course you have different analytics platforms, long and longer has been not having AWS and Oracle synced up has been sort of a boondoggle for some of the on-prems now you suddenly have a situation where no matter which public cloud provider you use, you get Exadata Oracle in the cloud in their data center, fast speed, low latency, high quality.
You said hell had frozen over. I mean, look, I just saw that as a partnership that would never happen. And now this happened and I think it really changes the trajectory, Pat, of everything in that particular space right now. It also really positioned Oracle well, Oracle liked to say that it was kind of the only full stack we know and we agree that that’s not necessarily the case. Microsoft has a very full stack hardware database, software application. But having said that, there really are only a couple. And when it comes to the volume of the workload, the ERP database workloads, Oracle’s the dominant SAP, the biggest too in that particular workload. So all of a sudden you’ve really changed the trajectory of the whole business, any cloud. And of course it runs incredibly well on its own cloud and its own cloud grew really quickly. So Pat, this was good news, big news. I think it sort of stole the show at Oracle Cloud world, and I think this really sets us up pretty well to flow into the topic.
Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
