Intel thinks hybrid clouds matter based on the combination of data centers built out for public clouds and the expectations for workload traffic in private clouds. I've been watching the hybrid cloud evolution since 2011 and some data sets simply belong in private clouds for security reasons. Public cloud providers have fallen down on their promises of security and this month's numerous high-profile data breaches are the data sector's indictment.
Intel's enthusiasm for new modalities in data transfer and virtualization gave me an insight. Data centers that add virtualization into their cloud services should see higher ROIs as their costs come down. Cloudonomics metrics should prove my theory. The enhanced ROI relationship should also hold for the addition of remote resources and non-volatile memory.
Larry's Coke bottle on stage looked like it had an import sticker on the side. I have only seen those square white stickers on bottles imported from Mexico. Die-hard Coca-Cola aficionados prefer Mexican Coke because its use of cane sugar makes the taste more palatable compared to US-bottled coke, which uses beet sugar. This has nothing to do with enterprise computing but I notice all kinds of little details wherever I go. Knowing a key leader's biography down to minute personal preferences helps illuminate their leadership style.
Oracle is entering a price war with Apple, Amazon, and Google over cloud services at the same time it is moving its entire app family into its own cloud. The other players either already had their cloud capability before they built their app product lines or built both capabilities out simultaneously. They could build apps with no concern for legacy integration with on-premise products that had not yet migrated to their clouds. Oracle has the more difficult road to pave as it must preserve support for on-premise legacy products while it builds out its cloud. The competitor with the deepest pockets always wins a price war. Let's compare the cash positions of these four giants to see who starts off ahead.
Cash positions, from Yahoo Finance . . .
Oracle (ORCL): $24.2B (August 31, 2014)
Apple (AAPL): $13B (June 28, 2014)
Amazon (AMZN): $5B (June 30, 2014)
Google (GOOG): $19.6B (June 30, 2014)
Please note that these figures do not necessarily include the huge amount of cash Apple has sequestered in a separate entity named Braeburn Capital. I don't have time tonight to dig through Apple's financials to see how they distinguish their various cash management programs. Apple's massive cash hoard probably places it in the leading position to win a cloud service price war, assuming nothing else changes.
I noticed that I was the only audience member in sight who was taking notes. I was nowhere near the section reserved for press, analysts, and bloggers so I can't tell which among them took notes or blogged live. A few news outlets published their stories ahead of mine, but I caught a couple of interesting quotes. I'm pretty sure Larry said "think different" (a Steve Jobs quote from his resurrection of Apple) and "at the speed of thought" (a Bill Gates quote). Larry obviously admires his competitors. I admit that I admire this guy too after seeing him on stage.