I’ve given quite a list of things we are taking on and some of you will ask how we can afford to do them, said Mr Ellison. Scalability is very important in the software business. We have a $2bn R&D budget. As we get larger we are able to invest more money. Scale is extremely important in the software business.
First on the list of priorities is open systems, he said, during his keynote address at the Oracle OpenWorld show in San Francisco.
They are important because they give customers’ choices, he said. They enable applications to work nicely with each other and for middleware components to be plugged in and out. Middleware incorporates many components he said – portals, Java containers, security management, and identify management.
So long as you build products on standards you should be able to unplug our Java container and plug in the Java container from WebSphere. You should be free to choose whatever container you want, Mr Ellison said.
Open standards is a popular message and the reality can be vastly different from the company line, but Oracle appears to doing enough to make its customers believe in the message and the decision to provide native support for IBM’s WebSphere has helped boost confidence.
Some users were happy to hear that Oracle was to continue its relationship with IBM.
We are greatly encouraged by the commitment to WebSphere and the relationship with IBM. We were concerned that we would be rushed into another implementations. We feel we have the flexibility to move to Fusion later, without damage to the business, said Phil Walton of Spirent Communications, a JD Edwards user and a big Siebel shop.
The second theme is SOA of course, with all Fusion applications being built on a service-oriented architecture on Fusion Middleware.
Once again the notion of standards [applies]. SOA, Java and the Internet gives choice to preserve existing and investments and makes easier the choices for the future, said Mr Ellison.
However, the openness of standards and SOA only goes so far in the Oracle house. While Oracle is trumpeting its certification of WebSphere it has not decided whether to extend that to IBM’s DB/2 database. Mr Ellison said the decision as to whether to certify Fusion applications with non-Oracle databases is pending.
This is a major issue because of the large proportion of DB/2 users with in the PeopleSoft, JDE Edwards and Retek user camps. In addition, I-flex, Oracle’s recently acquired financial software company has just ported its previously Oracle-only application to DB/2. While Oracle says it is committed to continuing support for DB/2 and other databases where they already exist, the question of Fusion remains open.
I think choice is a good thing. Everything else being equal I would like to give you choice but we have yet to make that decision, said Mr Ellison. He said Oracle is talking to customers about why they chose other databases and what database issues they will have going forward.
As far as Mr Ellison is concerned there are two issues: portability and choice or a little extra security.
Security was his next major theme, based on the idea that security issues and risks are increasing the more organizations use the public Internet to allow their customers, partners and employees to access their systems.
Oracle is very focused on security and managing risks across the stack, he said, emphasizing the need to encrypt data not just in the database but as it goes out over the internet, as it comes off drives and into backup devices.
There is a debate within Oracle as to whether it should be possible to have unencrypted data: I vote No. It takes longer but it is nice to have a failsafe system. If you lose a tape, no-one can get access to the data, Mr Ellison said.
Within the security umbrella there is also a focus on intrusion detection, especially given the move to VOIP.
Business intelligence remains a key area of activity as Oracle, in common with most business applications vendors, continues to pump out the message that automating processes it not enough, they have to be combined with intelligence. Process automation cannot be separate to business intelligence. They have been separate worlds until now but that has got to change, Mr Ellison said.
Deep industry functionality is another major theme, but he assured customers that it means more than adding functionality at the application level, the intention is to build deep industry functionality throughout the stack.
For instance he said Oracle has altered the database to build algorithms to meet requirements within the biotech industry and has built VOIP capabilities into Fusion Middleware for the telco industry.
Instead of altering just the application for vertical industry needs, Oracle intends altering the applications, middleware and database where appropriate. It is no easy to do unless you have your hands on all three tiers Mr Ellison says.
Another focus area is automation because of its ability to drive down cost and reduce error. This focus is driven in part by the need to promote grid technology as Mr Ellison says one of the barriers is making the management of 63 computers look and feel as easy as managing one through automation and cloning.
The final area is on demand, where he said Oracle would redouble its efforts, acknowledging that Salesforce.com and NetSuite will be threats for the future. Oracle will aim to provide everything from full on premise to full one demand and everything in between.
