Oracle not to rent commodity cloud space

Oracle has ruled out following Amazon’s strategy of renting out commodity space on hardware farms as part of its cloud computing strategy. “That business is not profitable and Oracle would not want to get involved until the economics change,” said Thomas Kurian, SVP of product development at Oracle. He was speaking at the London launch of Oracle Fusion Middleware 11g this morning.

Commentators have speculated that Oracle could follow in Amazon’s footsteps after its acquisition of hardware and software company Sun Microsystems announced earlier this year.

“Should the acquisition of Sun continue, we will disclose our [hardware] plans when the deal is finalised,” said Thomas Kurian. Oracle’s vision of cloud computing is about deploying information systems and applications in a virtualised environment using a pool of hardware and about processes that deliver those as services, but not necessarily together, he said.

Oracle provides its software as a service through its on-demand division as well as licensing its software for third parties using a cloud computing model.

“We do have cloud strategy, but the term is used to mean so many different things that Oracle prefers to be more specific about what is meant,” he said.

Kurian said OFM provides that functionality and is used by the top ten cloud computing providers, including Amazon

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