Lumbering sluggers come out ducking and weaving

OK – that’s as far as I intend to go with sport metaphors. I’m talking about IBM and Oracle and where their long-term war is taking them next.

You’ll remember that Oracle bought Sun Microsystems early last year for $7.4 billion. Since then, IBM has been hoovering up customers. In August, market researchers IDC were saying that IBM had grown its Unix revenues by 15 percent in the second quarter and its market share by 6 percent. Adding that Oracle had lost share.

IBM claims that in the second quarter, its Power Systems unit acquired 334 customers from competitors, with 210 of those coming from Oracle. And, just to show that they are on a war footing and it’s not just friendly rivalry, IBM says that its formal migration program, which entices customers to move to IBM systems, has gained 7,210 server and storage customers from rivals since its inception in 2006.

There is a third player on the pitch – HP – which has been experiencing pretty dire times itself recently. IBM’s saying it’s acquired 110 users from HP. HP recently announced that Meg Whitman, the former CEO at eBay, will take over from Leo Apotheker, who’s only been there a year. Why dump Apothekar? No other reason than the company losing half it’s market value in the time Apothekar has been in charge!

There were even rumours (and, who knows, it might still happen) that Oracle would scoop up HP and add it to its own portfolio. Others suggest that the problems Oracle experienced with Sun’s SPARC hardware business may convince it to keep away from HP’s Itanium. Perhaps IBM might buy HP? That last sentence should come enclosed in tags!

But after a longish period of haemorrhaging its Sun SPARC users and having to put up with IBM’s suitably smug grins, Oracle has now announced its high-end SuperCluster system powered by its new T4 SPARC chip. With an estimated 50,000 SPARC customers, it’s a business well-worth hanging on to.

The SuperCluster T4-4 is a general-purpose system offering a claimed 33 percent more price/performance than IBM’s largest Power servers and (again claimed) more than 50 percent more price/performance than an Itanium-based Integrity server from HP.

The SuperCluster is powered by Oracle’s eight-core T4 chip, which Oracle claims offers five times the performance of the current 16-core T3. The SuperCluster also includes the capabilities of Oracle’s existing Exadata database system and Exalogic cloud-in-a-box offering, both of which are powered by x86 chips from Intel.

The SuperCluster runs the current Solaris 10 operating system or the new Solaris 11, and will run any applications that its SPARC customers might run.

We can only wait and see what IBM will produce when it comes out of its corner. It certainly knows that the fight is back on.

Johnny head-in-the-clouds

Almost everyone is predicting 2011 will be the year when cloud computing becomes a reality for many organizations. CA produced surveys towards the end of last year showing this to be part of the planning of most of the organizations they surveyed. Other surveys, like BMC’s and the Arcati Mainframe Yearbook found that cloud computing wasn’t quite on the radar of many of the people who actually do the day-to-day systems work.

This week has seen a report from IBM suggesting that 70 percent of small and medium businesses – perhaps not its usual massive mainframe users – are either planning to, or already do, deploy cloud-based IT infrastructures to improve their performance and reduce costs. For the report, IBM surveyed 2,112 business and information technology decision makers at midsize businesses around the world, and the publication is called Inside the Midmarket: A 2011 Perspective.

Also in the report was a finding that these same SMBs were moving from cost control to growth in terms of cloud computing. The report says that 62 percent of surveyed organizations are planning to increase their IT budgets in the next year or so. Now one spin on that would be that the world is out of recession and all’s good with the world. An alternative way of looking at it is to say that most sites have reduced or kept spending the same for the past two years and there’s a huge amount of pressure – like a boiling kettle – to update hardware and software.

The survey also found that 70 percent of respondents are actively pursuing business analytics to help give them some kind of insights into the huge amounts of data they’ve generated. The survey also found that 66 percent of respondents say they are embracing the benefits of cloud computing to optimize costs and redundancy while increasing uptime and scalability.

Obviously cloud computing is new to so many of the organizations surveyed and perhaps not surprisingly it was found that more than 70 percent are looking for local business partners with industry expertise for more of a consultative – rather than a purely transactional – relationship.

In other news (as they say) the new CEO at HP, Leo Apotheker is looking to make his company a leader in the development of infrastructure and platform Cloud services with an open Cloud, which many people assume will compete directly with Google's similar Cloud-based offering.

My final words of ‘wisdom’ on this matter is that we all think we know what we mean by cloud, but for many organizations it might be like shopping for a ‘car’ or ‘automobile’. You could end up with a Rolls Royce or second-hand Reliant Robin! As you work your way down into the nitty gritty details of what your organization needs, you can find cloud computing to be a fairly nebulous term!