Light Reading

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
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.

 

 
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
Que Sera Sarah
Growth of the 5G Ecosystem

3|6|15   |   1:15   |   (1) comment


Use cases and industry collaborations dominated 5G discussions during Mobile World Congress 2015. For what the road to 5G means for operators and their partners, head to the Building America's 5G Ecosystem event in New York on April 14.
LRTV Custom TV
Sonus NaaS IQ Real-Time Demo

3|6|15   |   4:03   |   (0) comments


Compass Networks Chairman and CEO Matt Bross and Ray Dolin, CEO of Sonus Networks, demonstrate their Sonus IQ SDN solution using a live video conference connection.
LRTV Custom TV
LRTV Talks Carrier WiFi & WiFi Calling With Aptilo Networks

3|6|15   |   4:53   |   (0) comments


We stopped by Aptilo Networks, a market leader in WiFi service management and offloading, to discuss the new possibilities with next-generation WiFi calling and why WiFi should be a natural part of any operator strategy.
LRTV Interviews
NGMN Chairman Outlines His 5G Vision

3|6|15   |   5:10   |   (1) comment


Bruno Jacobfeuerborn, chairman of the NGMN Alliance and Deutsche Telekom CTO, shares his thoughts on the challenges, opportunities and costs of 5G.
LRTV Interviews
In the Cloud With Telecom Italia

3|5|15   |   7:10   |   (0) comments


Light Reading CEO Steve Saunders sits down with Telecom Italia's Simone Battiferri at Mobile World Congress to discuss virtualization, agility and the economic advantages of the cloud.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Alibaba 'Planting a Flag' in US Cloud Market
Mitch Wagner, West Coast Bureau Chief, Light Reading, 3/4/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.