Buy Up The Companies That ‘Get’ The Cloud
Oracle’s (ORCL) earnings bombshell yesterday is the first indication that cloud computing is hitting enterprise IT.
Regardless of what it may say publicly, Oracle is not a cloud company. It sells big iron, Sun servers and Exadata data systems. It sells big software, in the Oracle database and all the applications around it. It needs people to write big checks every year for its licenses, and bigger checks whenever they want to grow.
But something has changed. Cloud has changed.
Cloud is not based on expensive servers, but commodity hardware. Cloud is based on open source, not vendor lock-in. Cloud is based on Software as a Service (SaaS), not enterprise IT as it has existed in the past. With cloud, you pay for what you use, not what you need…

