Oracle CEO rips Salesforce.com, announces public cloud

- Thursday, October 6, 2011

Oracle CEO rips Salesforce.com, announces public cloud

Oracle (Nasdaq: ORCL) has launched the Oracle public cloud to run Fusion applications and platform as a service based on open industry standards and interoperability, company CEO Larry Ellison announced at the Oracle OpenWorld conference.

The chief executive also strongly criticized US on-demand services provider Salesforce.com's (NYSE: CRM) vendor proprietary standards. There apparently is no love lost between Ellison and head honchos at Salesforce.com, including CEO Marc Benioff, who came from Oracle.

"Salesforce.com is the roach motel of clouds. You can check in but you can't check out," Ellison said, underlining that with Oracle's cloud, any existing database can be moved to the cloud, between clouds, and back on premise. But with Salesforce.com, "you're committing yourself for life to that application. You can't run that anywhere else. Ever."

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The company has spent six years on re-building Fusion applications, with more than 100 software products that are now generally available throughout the world. Until now, Oracle had about 200 early adopter customers. The modules were designed to run both in the cloud and on premise and have security built into the middleware, database and OS.

Security is an issue with other cloud providers that host their clients on the same database, he said. "That's called multi-tenancy; it worked 15 years ago but now we're in 2011. This isn't a good idea.... it puts your data at risk." Oracle's cloud security solution provides a separate virtual machine and database for each customer.

The services and apps available on the cloud are elastic, Ellison added, with capacity on demand and not rate limited; as such, the customer only pays for what he or she uses.

The Fusion applications offer a user interface with built-in BI and analytics, available for customers from the moment they turn on their computers or mobile devices, and also now include the new Oracle Social Network, which helps users define not only what they need to do and know, but also with whom they have to work in developing business.