& cplSiteName &

Verizon Scores Oracle Cloud Breakthrough

Carol Wilson
1/10/2014
50%
50%

Verizon Enterprise Solutions today announced what appears to be something of a cloud breakthrough -- an agreement with Oracle to allow its Oracle Database and Oracle Fusion Middleware to be distributed via the Verizon cloud platform, on a pay-by-the-hour basis. (See Verizon Delivers Oracle Apps on Demand .)

The deal is significant on multiple fronts. It represents the first major move by Oracle Corp. (Nasdaq: ORCL), a key provider of enterprise apps, to engage in distribution via a cloud service provider, rather than via its more typical software licensing arrangement. It's also a major coup for Verizon Enterprise Solutions in its efforts to attract major business apps to its new cloud platform. (See Verizon: Major Apps Move Cloud-ward in 2014 and Why Verizon Needed a Cloud Reboot.)

"This is a really big deal," says Melanie Posey, vice president of the Hosting and Managed Network Services program at IDC . "It is the most comprehensive set of Oracle software licensed to a cloud provider, and while that is not to say this is exclusive to Verizon, Oracle has chosen Verizon as its first partner," she notes.

Posey believes Oracle's move follows Verizon's announcement last October of a new cloud platform specifically designed to support enterprise apps.

Amy DiCarlo, principal analyst, Managed IT Services, at Current Analysis , sees the Verizon-Oracle deal as a potential roadmap for how other large enterprise apps move into the cloud, because of the flexibility built into the deal. According to Verizon, Oracle customers can bring their existing Oracle licenses to the Verizon platform or purchase Verizon cloud services that already include Oracle licenses. Customers of Verizon's eCloud and Managed Hosting services can also use the Oracle software on a per-hour basis, without buying Oracle licenses.

"It's a very practical approach," DiCarlo notes. "Companies like Oracle have had a lot of trepidation about moving to the cloud, but this agreement lets them do it on physical servers via managed hosting, as well as by the Terremark cloud and the newer Verizon Cloud. It's a good bridge for the Oracle Database and a good way for organizations to start slowly, not even virtualizing things right way if they don't want to."

Choice, flexibility, and cost savings are the primary advantages to enterprises considering moving these two Oracle apps to a cloud approach, which lets them use what they want and pay for what they use, notes Posey. But some customers -- either those needing more customized deployment or those using Oracle apps in more testing and development approaches -- would likely still buy directly from Oracle in the traditional software-licensing mode or through Oracle's own cloud offers.

Verizon deliberately negotiated a range of cloud options for Oracle customers, says Verizon Terremark CTO John Considine. It did this in part because the company continues to view cloud as part of its broader network-security-service portfolio, and in part to ensure that all existing customers of cloud and hosted services have a shot at the new Oracle offers. At the same time, the company ensures that no one is stranded because of not moving to the newer Verizon cloud.

Admitting that the Oracle negotiation and development process was a long one, Considine says he believes this deal will put pressure on other major enterprise app vendors to move more aggressively into the cloud, which would benefit Verizon in the process.

"This underscores the fact that cloud is big and it's happening," he says. "We think as a partner, Verizon is well-aligned for a company like Oracle because we serve all the top customers and we are bringing our core network, data center, and cloud capabilities together to give the Oracle customer base more outlets and more capabilities for getting their work done."

— Carol Wilson, Editor-at-Large, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
1/13/2014 | 11:41:59 AM
Re: Verizon and Oracle
Carol,

Thanks for the clarification.  Do you/LR go to folks like Rackspace or Amazon and go after what they are doing in their business?  They are non-traditional "competitors" to the carriers.  One could certainly compare the use of those type of companies (as well as somebody like Equinix) and compare it to what you could do with a carrier.

seven

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
1/13/2014 | 10:33:21 AM
Re: Verizon and Oracle
If the story says or implies that this is the first time you can rent Oracle apps by the hour, that's wrong and not what I intended. What BOTH Oracle and Verizon are saying is that this is significantly different from what is available to date and is a first for Oracle with a telecom cloud service provider.

What the analysts are saying is that this is the most comprehensive set of Oracle software to be licensed to the cloud. I don't have personal knowledge of that fact, which is why I quoted them, but there seems to be general agreement on this point. 

Ponnn's comment and questions are well-taken - it would be good to compare a Verizon customer experience to that of an AWS user but since this is brand new, I think it's early days for that. 
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
1/13/2014 | 10:28:18 AM
Expect On Demand to Grow
This fits into Infonetics analyst's Shira Levine prediction of more ad hoc provisioning of services, as discussed at sister publication Service Provider IT Report. I would expect to see others in this space following Oracle's lead.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
1/13/2014 | 9:44:16 AM
Re: Verizon and Oracle
Did everyone ignore ponnn's comment?

http://aws.amazon.com/rds/oracle/

Been there for some time.  Definitely NOT the first time that you can rent an Oracle DB by the hour.

seven

 
C Chappell
50%
50%
C Chappell,
User Rank: Blogger
1/13/2014 | 6:18:21 AM
Verizon and Oracle
Interesting that Oracle has at last chosen to go direct - some of its distribution partners have already made their cloud moves. Interoute bought Quantix Oracle database-as-a-service provider back in 2011, for example. 
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/12/2014 | 2:58:15 PM
Long negotiation
I wonder how many hoops Verizon had to jump through, and how much Oracle ws holding out to wait and see how ready and committed Verizon was for the cloud business.
ponnnn
50%
50%
ponnnn,
User Rank: Lightning
1/10/2014 | 4:20:45 PM
AWS
It sounds like this is a closer relationship and potentially better offering then AWS has, but then again AWS had this 3 years ago. I have never tried RDS for Oracle, so I can't say how well it works.  I would love to read some reports from users comparing the Amazon and Verizon offerings.  Let me know if anyone finds one.  Even a write up from a Verizon user would be cool to read.  Amazon's offering is really bolstered from mypersepctive by having someone like Netflix who is so open about their experience on AWS.

 

 
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 28, 1:00PM EDT
Gigabit 101
Will Barkis, Senior Technology Analyst, Orange
UPCOMING COURSE SCHEDULE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
LRTV Custom TV
Huawei Optical Innovation 2016

9|6|16   |     |   (0) comments


Highlights of the 2016 Huawei Optical Innovation forum.
LRTV Huawei Video Resource Center
Are You Ready for Huawei Connect 2016?

8|31|16   |     |   (0) comments


Join us for an exclusive sneak peak of Huawei Connect, an integrated conference for the global ICT ecosystem taking place in Shanghai.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Keeping Your Tech Career Going After 50
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/21/2016
Time to Shut Up About 'Dumb Pipes'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
Comcast Will Go Wireless in 2017
Mari Silbey, Senior Editor, Cable/Video, 9/20/2016
Sprint CEO: We'll Lease Spectrum as Soon as Possible
Dan Jones, Mobile Editor, 9/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
You Thought Your Customer Service Was Unreliable... Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.