Larry Ellison Still Hates "Cloud Computing Nonsense" (Video)

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According to Wikipedia, cloud computing is a paradigm of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet. According to Larry Ellison, it’s nonsense and water vapor.

The chief executive of Oracle last week at the Churchill Club sat down with former Motorola CEO Ed Zander for a fireside chat about the future of the company he co-founded, the pending acquisition of Sun and the implications thereof, and the state of the economy in general.

Most amusing however, was his ranting on cloud computing, captured on video by TechPulse360. Of course, we’ve heard his refreshingly critical take of the buzzword du jour before, but he continues to make it a valid point:

(Via Dvorak Uncensored)

  • http://www.binfire.com david Robins

    With all due respect to Larry Ellison, he is wrong!!! More and more people are using cloud computing services and loving it. At my company http://www.binfire.com we are doubling our user base every three months!

    • fireashes

      He does not hate cloud computing. He just hates the use of hte word cloud computing. He makes money by selling his software to the people who sell his softwares to the people who sell services termed as cloud computing. He is just laughing at the fact that people are confusing a server with cloud computing.

      If he hates cloud computing then he would be out of business.

      • Ersatz

        +1

        Also, OP, “Most amusing however,”. You think Ellison and Zander discussing “the state of the economy in general” is amusing? Tell us what you really think.

      • northernlight

        This is potentially the dumbest commentary I’ve ever heard on TC.

      • northernlight

        And yes, I am definitely talking about Larry Ellison’s comments. Who gave him a mic in the first place?!

      • http://www.oracle.com/technology/tech/cloud/index.html Oracle Cloud

        If he hates the term “cloud” so much, he must also understand what a powerful marketing tool it is for his “Oracle Cloud Computing Center”

        http://www.oracle.com/technology/tech/cloud/index.html

      • http://alyssamyers.com Alyssa Myers

        That cloud is going to rain on his parade.

      • sponge j

        Is that a blonde wig?

    • blah

      Great you are doubling your user base every 3 months… So what is cloud computing?

      After you define that, and then define the “internet” or “server” or “network” you will see what he is talking about in the video…

      Cloud is the Web2.0, its just marketing crap.

      • http://www.binfire.com david Robins

        Doubling our user base is not cloud computing, but the fact the software runs on our servers and users’ files and information are saved on multiple servers with mirror disks and the fact that the user only needs a browser to run our tools and no installation and maintenance are needed, in my mind is cloud computing. It seems a lot of people like this approach!

      • http://www.facebook.com/people/Lee_Lloyd/1526897028 Lee Lloyd

        Yes, people like this client/server model so much, that they’ve been using it since before the invention of personal computers. That is the whole point. “Cloud” computing is in fact the oldest form of computing, making it kind of silly to give it a special name.

      • http://lewiscollard.com Lewis

        So what you’re saying is that cloud computing means putting stuff on the Internet?

        What a fucking cool idea. Dude.

      • Darren

        Sure the technology isn’t new but it *is* a paradigm shift. For the last 15 years, if the average user wanted to write a documnent, they would buy a PC running Windows, a copy of Office, write the doc and then save it on their PC. If they wanted to edit that doc on another computer, they would save it to a floppy/USB or, if they were feeling clever, email it to themselves. Now the time is approaching where if the average user wants to write a doc, they just boot up a browser on any internet-enabled device, use a web-based Word equivalent like Google Apps (or Office Live) and all their docs are already available. Don’t you think such a fundamental shift in the behaviour of the average user has any relevance? Sure it’s just a marketing term but it represents avery real and important change in the way people use computers. So yes, Larry has missed the point.

      • Your Mom

        If you think that what you have described is a ‘fundamental shift’, then you should get into another line of business. Not that much difference between the two, kind of ellisons point, don’t believe the hype, or in your case, the simpletons.

    • Bob M

      David, the term Cloud is just another stupid buzzword for internet. That’s what Larry is talking about. My company has been offering internet based services for 12+years. Now it’s called the Cloud and everybody thinks it’s cool. I vote we call it the “European Cloud”. If it’s from Europe it must be twice as cool.

      • http://www.binfire.com david Robins

        Bob-
        I loved the “European Cloud” part :)
        I get your point, but the term internet services or SaaS over internet is coined as cloud computing. Makes it easier for people to get it.
        By the way what is your company?

  • http://www.binfire.com david Robins

    With all due respect to Larry Ellison, he is wrong!!! More and more people are using cloud computing services and loving it. At my company http://www.binfire.com we are doubling our user base every three months!

    • fireashes

      He does not hate cloud computing. He just hates the use of hte word cloud computing. He makes money by selling his software to the people who sell his softwares to the people who sell services termed as cloud computing. He is just laughing at the fact that people are confusing a server with cloud computing.

      If he hates cloud computing then he would be out of business.

      • Ersatz

        +1

        Also, OP, “Most amusing however,”. You think Ellison and Zander discussing “the state of the economy in general” is amusing? Tell us what you really think.

      • northernlight

        This is potentially the dumbest commentary I’ve ever heard on TC.

      • northernlight

        And yes, I am definitely talking about Larry Ellison’s comments. Who gave him a mic in the first place?!

      • http://www.oracle.com/technology/tech/cloud/index.html Oracle Cloud

        If he hates the term “cloud” so much, he must also understand what a powerful marketing tool it is for his “Oracle Cloud Computing Center”

        http://www.oracle.com/technology/tech/cloud/index.html

      • http://alyssamyers.com Alyssa Myers

        That cloud is going to rain on his parade.

      • sponge j

        Is that a blonde wig?

    • blah

      Great you are doubling your user base every 3 months… So what is cloud computing?

      After you define that, and then define the “internet” or “server” or “network” you will see what he is talking about in the video…

      Cloud is the Web2.0, its just marketing crap.

      • http://www.binfire.com david Robins

        Doubling our user base is not cloud computing, but the fact the software runs on our servers and users’ files and information are saved on multiple servers with mirror disks and the fact that the user only needs a browser to run our tools and no installation and maintenance are needed, in my mind is cloud computing. It seems a lot of people like this approach!

      • http://www.facebook.com/people/Lee_Lloyd/1526897028 Lee Lloyd

        Yes, people like this client/server model so much, that they’ve been using it since before the invention of personal computers. That is the whole point. “Cloud” computing is in fact the oldest form of computing, making it kind of silly to give it a special name.

      • http://lewiscollard.com Lewis

        So what you’re saying is that cloud computing means putting stuff on the Internet?

        What a fucking cool idea. Dude.

      • Darren

        Sure the technology isn’t new but it *is* a paradigm shift. For the last 15 years, if the average user wanted to write a documnent, they would buy a PC running Windows, a copy of Office, write the doc and then save it on their PC. If they wanted to edit that doc on another computer, they would save it to a floppy/USB or, if they were feeling clever, email it to themselves. Now the time is approaching where if the average user wants to write a doc, they just boot up a browser on any internet-enabled device, use a web-based Word equivalent like Google Apps (or Office Live) and all their docs are already available. Don’t you think such a fundamental shift in the behaviour of the average user has any relevance? Sure it’s just a marketing term but it represents avery real and important change in the way people use computers. So yes, Larry has missed the point.

      • Your Mom

        If you think that what you have described is a ‘fundamental shift’, then you should get into another line of business. Not that much difference between the two, kind of ellisons point, don’t believe the hype, or in your case, the simpletons.

    • Bob M

      David, the term Cloud is just another stupid buzzword for internet. That’s what Larry is talking about. My company has been offering internet based services for 12+years. Now it’s called the Cloud and everybody thinks it’s cool. I vote we call it the “European Cloud”. If it’s from Europe it must be twice as cool.

      • http://www.binfire.com david Robins

        Bob-
        I loved the “European Cloud” part :)
        I get your point, but the term internet services or SaaS over internet is coined as cloud computing. Makes it easier for people to get it.
        By the way what is your company?

  • http://www.bionicdreamer.com Geoffrey Lee

    Cloud Computing is just another buzzword, like AJAX.

    • http://feedsmanagement.com/uk/ marcin

      but AJAX is powerful and commonly used and its more then just the buzz word now…

      • TimT

        +1

        Ajax and Cloud are both overly abused but extremely powerful technologies.

  • http://www.bionicdreamer.com Geoffrey Lee

    Cloud Computing is just another buzzword, like AJAX.

    • http://feedsmanagement.com/uk/ marcin

      but AJAX is powerful and commonly used and its more then just the buzz word now…

      • TimT

        +1

        Ajax and Cloud are both overly abused but extremely powerful technologies.

  • http://www.encontrado.es Encuentra

    Ellison hates cloud computing because it will imply:
    – Concentration of computing services with the pricing negotiation power that these providers will get with Oracle.
    – More usage of Open Source software in detriment of Oracle’s products.

    Ellison prefers to deal with a fragmented market in which he has an advantage.

    More and more big companies are abandoning their own infrastructure and moving to the cloud. Its a fact. Nothing to discuss about it really.

    • marc

      +1

    • vlad

      +1
      For big shots like Larry what he thinks and what he “hates” are always two diff things. Thats just a rule for all public ppl.

      Of course he understands what ist all about and why its is dangerous for oracle. And i am 100% sure that his corporation is already workin on some cloud things while he “hates” all that

    • Pete Austin

      +1. Cloud Computing commoditizes part of his market, and NoSQL implementations make Oracle’s technology less relevant.

  • http://www.encontrado.es Encuentra

    Ellison hates cloud computing because it will imply:
    – Concentration of computing services with the pricing negotiation power that these providers will get with Oracle.
    – More usage of Open Source software in detriment of Oracle’s products.

    Ellison prefers to deal with a fragmented market in which he has an advantage.

    More and more big companies are abandoning their own infrastructure and moving to the cloud. Its a fact. Nothing to discuss about it really.

    • marc

      +1

    • vlad

      +1
      For big shots like Larry what he thinks and what he “hates” are always two diff things. Thats just a rule for all public ppl.

      Of course he understands what ist all about and why its is dangerous for oracle. And i am 100% sure that his corporation is already workin on some cloud things while he “hates” all that

    • Pete Austin

      +1. Cloud Computing commoditizes part of his market, and NoSQL implementations make Oracle’s technology less relevant.

  • Frank W

    I think he is wrong, too. The cloud services are more about scaling and easy to manage services, instant processing power and seamlessly booting instances. Pay for the real used bandwidth and power rather than a monthly fee.

    • tim

      +1

      I agree. Some of the earlier comments about it being a buzz word or overly used are off base. I’ve had colocs, VDS, and finally moved to a cloud service last year because it provided everything you mentioned. Without the things that you mentioned I would not consider a service “cloud computing.” I think some of comments reveal that many do not know what to consider cloud computing or are upset that the term is used too broadly.

      • http://www.robodance.com/ Robert Oschler

        Every time something new comes out their is resistance to it. This is pretty much a human trait. 2 years from now no one will even raise an eyebrow to the use of the term “cloud computing”. There will be too many new ones to get angry about. :)

      • Wali

        umm…that’s virtualization on steroids

  • Frank W

    I think he is wrong, too. The cloud services are more about scaling and easy to manage services, instant processing power and seamlessly booting instances. Pay for the real used bandwidth and power rather than a monthly fee.

    • tim

      +1

      I agree. Some of the earlier comments about it being a buzz word or overly used are off base. I’ve had colocs, VDS, and finally moved to a cloud service last year because it provided everything you mentioned. Without the things that you mentioned I would not consider a service “cloud computing.” I think some of comments reveal that many do not know what to consider cloud computing or are upset that the term is used too broadly.

      • http://www.robodance.com/ Robert Oschler

        Every time something new comes out their is resistance to it. This is pretty much a human trait. 2 years from now no one will even raise an eyebrow to the use of the term “cloud computing”. There will be too many new ones to get angry about. :)

      • Wali

        umm…that’s virtualization on steroids

  • http://www.uptomark.com janes

    i am also think that cloud computing is necessary these days and we have to work our it.

  • http://www.uptomark.com janes

    i am also think that cloud computing is necessary these days and we have to work our it.

  • Joe

    I love Larry Ellison’s candor, and he’s right..thats all it really is.Yes some of the business model changes here and there but what it really is renting software vs owning it.

    I’ve found the whole cloud computing push funny, nothing has really changed, but some people really think this is new.

    • Mike

      +1

  • Joe

    I love Larry Ellison’s candor, and he’s right..thats all it really is.Yes some of the business model changes here and there but what it really is renting software vs owning it.

    I’ve found the whole cloud computing push funny, nothing has really changed, but some people really think this is new.

    • Mike

      +1

  • http://www.sashsavic.com Sash

    i also don’t see a difference between cloud computing and SaaS

  • http://www.sashsavic.com Sash

    i also don’t see a difference between cloud computing and SaaS

  • http://VybeAlert.com Sean Mahoney

    For the geeks, Cloud Computing is nothing new. The center of where the power exists has shifted back and forth between the client side and the server side many times.

    The real key for Cloud Computing is obscuring the actual technology from folks who don’t need to know /worry/care about it. Cloud Computing allows someone with negligible hardware knowledge to build and run a system. It is outsourced hardware.

    And I love Larry’s response. It would be like asking a farmer if he is worried about the new trend of “restaurants”. People still eat, even if they consume in a different way.

  • http://VybeAlert.com Sean Mahoney

    For the geeks, Cloud Computing is nothing new. The center of where the power exists has shifted back and forth between the client side and the server side many times.

    The real key for Cloud Computing is obscuring the actual technology from folks who don’t need to know /worry/care about it. Cloud Computing allows someone with negligible hardware knowledge to build and run a system. It is outsourced hardware.

    And I love Larry’s response. It would be like asking a farmer if he is worried about the new trend of “restaurants”. People still eat, even if they consume in a different way.

  • Don Rocin

    I am not a technology professional, I’m a business guy, so…. My fascination with the idea of Cloud is the thought that, armed essentially with a super browser, I will be able to interact with real-time technologies, data, and applications, on a scale that I could never possibly hope to achieve on my current internet desktop. Like going from using generators to linking to a grid. Is this what Cloud is about? If it is, then this is truly a change in technology architecture.

    • http://alexvalentine.org Alex

      @Don

      Thats web services not cloud computing.

    • http://www.robodance.com/ Robert Oschler

      Actually cloud computing is more likely outsourcing your IT department in a massive way rather than utilizing services from a rich client. With cloud computing you still provide the code that performs the services, but you are free from having to maintain a data center.

      • http://www.smallfish-bigpond.com Kerensky97

        Actually what you’re describing is Colocation, renting space at a centrally managed data center that many others rent from. I guess one could argue that it’s slightly different since you rent a “server” to put your code on rather than provide a “server” with your code on it.

        But the fact remains that “Cloud Computing” is not a technological shift or innovation, it’s simply a business structure shift for Datacenter companies. Your code is still sitting on a server providing the same services it did before.

        The datacenter just charges you for renting equipment now in addition to renting the space and connection like it did before.

  • Don Rocin

    I am not a technology professional, I’m a business guy, so…. My fascination with the idea of Cloud is the thought that, armed essentially with a super browser, I will be able to interact with real-time technologies, data, and applications, on a scale that I could never possibly hope to achieve on my current internet desktop. Like going from using generators to linking to a grid. Is this what Cloud is about? If it is, then this is truly a change in technology architecture.

    • http://alexvalentine.org Alex

      @Don

      Thats web services not cloud computing.

    • http://www.robodance.com/ Robert Oschler

      Actually cloud computing is more likely outsourcing your IT department in a massive way rather than utilizing services from a rich client. With cloud computing you still provide the code that performs the services, but you are free from having to maintain a data center.

      • http://www.smallfish-bigpond.com Kerensky97

        Actually what you’re describing is Colocation, renting space at a centrally managed data center that many others rent from. I guess one could argue that it’s slightly different since you rent a “server” to put your code on rather than provide a “server” with your code on it.

        But the fact remains that “Cloud Computing” is not a technological shift or innovation, it’s simply a business structure shift for Datacenter companies. Your code is still sitting on a server providing the same services it did before.

        The datacenter just charges you for renting equipment now in addition to renting the space and connection like it did before.

  • Joe

    Cloud computing refers to technical services (such as databases, file storage, web services) that are accessible only via web APIs. He’s right that companies are misusing the term, and it seems to have everyone confused. A lot of Web-based software companies use cloud services and thus call themselves cloud-based, which is not really true. They’re consumers of cloud services, not providers of it.

  • Joe

    Cloud computing refers to technical services (such as databases, file storage, web services) that are accessible only via web APIs. He’s right that companies are misusing the term, and it seems to have everyone confused. A lot of Web-based software companies use cloud services and thus call themselves cloud-based, which is not really true. They’re consumers of cloud services, not providers of it.

  • http://ikillbadness.com Jason Denizac

    Well sure, he’s right, technically – afterall, what’s all this “JavaScript” nonsense I keep hearing? Afterall, it’s all just ASM, which is really all just electrons jumping around on semiconductors, which are really just sand, anyway.

    He’s missing the point. The cloud means higher-level abstraction. It means separation of concerns. It means that I, as a developer, no longer have to worry about the lower-layer infrastructure of my application and can instead focus on the core value-adding business layer. This is a good thing.

    • http://www.robodance.com/ Robert Oschler

      Well said. Whether you hate new industry terms or not, they do make conversations about the technology easier and faster to refer to. Sometimes of course they are created just to push a weak product that really doesn’t do anything new and that annoys people. But “cloud computing” isn’t one of those and is a valid new term (IMHO).

  • http://ikillbadness.com Jason Denizac

    Well sure, he’s right, technically – afterall, what’s all this “JavaScript” nonsense I keep hearing? Afterall, it’s all just ASM, which is really all just electrons jumping around on semiconductors, which are really just sand, anyway.

    He’s missing the point. The cloud means higher-level abstraction. It means separation of concerns. It means that I, as a developer, no longer have to worry about the lower-layer infrastructure of my application and can instead focus on the core value-adding business layer. This is a good thing.

    • http://www.robodance.com/ Robert Oschler

      Well said. Whether you hate new industry terms or not, they do make conversations about the technology easier and faster to refer to. Sometimes of course they are created just to push a weak product that really doesn’t do anything new and that annoys people. But “cloud computing” isn’t one of those and is a valid new term (IMHO).

  • J.C. MacClore

    The Internet is the cloud. Stupid.

    • dave

      everytime I’ve drawn the internet on a whiteboard, that’s how I drew it.

  • J.C. MacClore

    The Internet is the cloud. Stupid.

    • dave

      everytime I’ve drawn the internet on a whiteboard, that’s how I drew it.

  • wwall

    LOL – I like Larry’s sarcasm. And he is quite correct in what he is saying.

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