Summary: You cant fault Oracle  for consistency in its cloud messaging, going back five years and  more. But does CEO Larry Ellison still have his heart in it?
    With this weeks announcement of Oracle Cloud, the vendor has    finally reached the halfway stage in the journey that former    company president     Charles Phillips outlined to me at Oracle OpenWorld five    years ago. Oracle was helping its customers take stair-steps    to on-demand, Phillips told me then. Five years later, Oracle    has finally managed to climb halfway up the ladder. Lets hope    the rest of the ascent will be faster.  
    Unfortunately, today Oracle remains stuck at the middle rung    with its stubborn insistence on dedicating individual database    instances  and sometimes entire application stacks  to    individual customers. These dilutions of the multi-tenant ideal    serve the database vendors self-interest, because it gets to    sell more licenses, but in cloud terms     its half-baked. Interestingly, the arguments in favor of    this approach have not advanced since Phillips conversation    with me back in 2007. He even used the same word,    co-mingling, that Ellison used this week to imply that    full-stack multi-tenancy is somehow less safe than confining    customers to separate databases or servers.  
    In one of my     frequent displays of inadvertent clairvoyance, this is a    line of argument I already dealt with last week, but since its    been trotted out again, Ill reiterate what I said then:  
      Do you worry about your data co-mingling with others when      the packets pass through the networks routers? You know that      the headers on the packets make sure that your data wont      accidentally go to someone elses endpoint. Cloud vendors use      exactly the same logical separation to keep your data from      co-mingling with anyone elses. The fact that it may be      stored on the same disk or go through the same processor chip      is as irrelevant as worrying about sending your physical mail      through the same postal system as your competitors.    
    Recommending single tenancy as a way of keeping your data safe    from co-mingling in a cloud environment is akin to    recommending abstinence as a means of avoiding teenage    pregnancies. Its somewhat old-fashioned given the better    targeted methods of protection available today; but worse than    that its doomed to failure because it ignores the realities of    how the world works. In a cloud environment (even Oracle    Cloud), co-mingling is the norm and your data is going to run    through the same cables, routers and management servers as    everyone elses even if it resides on separate databases. Your    employees logins are going to be co-mingling with those of    partners, customers and suppliers that they collaborate with as    part of their day-to-day projects. Youre going to need a more    sophisticated form of security than merely cloistering your    data in a dedicated instance.  
    But at least Oracle has been consistent in its messaging, not    merely five years back but all the way back to 1999, when it    launched its Business OnLine application hosting operation    (later renamed Oracle OnDemand). My report of the New York    launch is no longer online, but according to my archive copy,    Ellison then predicted, The software business is on its way to    becoming a service business  If you dont understand this [as    a software vendor], youre going to be in a lot of trouble.  
    Given that background and my conversation with Phillips five    years ago, Im more inclined than     some of my analyst colleagues to give credence to Ellisons    claim this week that Oracle Cloud is the result of a seven-year    development project. Back in 1999, Jonathan Lee, the founding    CEO of Corio, one of the earliest ASPs or application service    providers, was warning that vendors like Oracle would have to    fundamentally rearchitect their products to survive the shift    online. Project Fusion had many objectives, of course, and    presenting it as primarily focused on a cloud future is a    substantial reslanting of history. But one of its benefits was    the implementation of a service-oriented application platform    that is capable of operating in a cloud environment far more    efficiently that what went before. Indeed, looking at the        architecture slide of Oracle Cloud presented this week, the    main difference I can see from slides of the Business OnLine    and Oracle OnDemand architectures ten years back is that the    applications have become services  a prerequisite for the    transformation Lee had been calling for.  
    The problem for Oracle Cloud is that the majority of the    vendors customers still want to host their applications    on-premise and therefore the Fusion applications can never be    tuned to operate efficiently as massively scalable multi-tenant    instances. As pureply cloud providers gain the upper hand, that    will put the product set at a massive competitive disadvantage.    But thats for the future. For now, in view of the far higher    license revenues that Oracle can achieve so long as its    customers are confined to single-tenant instances, there is no    way Oracles president and CFO Safra Catz would allow Ellison    to talk up multi-tenancy even if he wanted to. So instead hell    continue to trot out the co-mingling claptrap and     all the other received wisdoms that enterprise IT buyers    continue to lap up because neither do they     want the disruption that a full embrace of cloud would    cause their own empires.  
    As a majority owner of NetSuite and a significant minor    investor in Salesforce.com, Ellison has hedged his personal    bets on cloud in any case. If Oracle can remain plump on the    ingrained buying habits of dyed-in-the-wool CIOs by continuing    to sell them on-premise implementations and single-tenancy    cloud, hes merely discharging his fiduciary duty as Oracles    CEO in encouraging them to do so. Why should he care? Perhaps    in his heart, though, hes irritated at the shortcomings of    Oracles middle-rung cloud and thats why his claims of Oracle    superiority     are starting to lose their edge.  
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Does Larry believe in Oracle's middle-rung cloud?
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