JP/14/Oracle

JP/14/Oracle

Oracle challenges the world
with unbreakable products

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Lela E. Madjiah
The Jakarta Post
San Francisco, California
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Oracle picked the perfect time when it launched its latest
technological development, the Unbreakable Oracle9i Internet in
early December. It's a complete, simple Internet application
infrastructure featuring Oracle9i Database (Oracle9i DB),
Oracle9i Application Server (Oracle9i AS) and Oracle Development
Tools.

The theme "Unbreakable" is both catchy and challenging,
especially in a world still astounded by the Sept. 11 terrorist
attacks on the World Trade Center and the Pentagon. Even Oracle
chairman and CEO Larry Ellison admitted in his presentation at
Oracle OpenWorld 2001 that he was quite stunned by his marketing
team's choice of campaign word.

"Are you guys crazy?" he had asked, fearing attacks by
hackers.

As if to fulfill his prophecy, the "can't break it challenge"
attracts 1,000 attacks per day to Oracle's website. The site is
still running without any interruption of service, though.

Oracle senior vice president, product and services marketing,
Jeremy Burton, explained that the theme was chosen to enable
businesspeople, who make purchasing decisions, know what clusters
is.

"The word 'Unbreakable' is so Oracle. If we had said clusters,
no one would understand it," added Mark Jarvis, Oracle senior
vice president and chief marketing officer.

The real application clusters is among the most significant
features of the more than 400 new features in Oracle9i DB.
Clustering allows technology departments to increase application
performance by adding new servers as transaction volumes grow. It
also improves overall application reliability by directing other
computers in the cluster to take over if one node in the cluster
fails.

"Oracle9i RAC is fault-tolerant, that is why it's
unbreakable," Ellison said, adding that its security is fully
proven, having been approved by 14 independent security
evaluations.

"You can't break it, you can't break in."

The Oracle9i DB with RAC is a result of 12 years of
development. Based on Oracle Cache Fusion Architecture, Oracle9i
RAC delivers nearly linear scalability and unbreakable
reliability for all applications. It provides transparent
application scalability by quickly and efficiently sharing
frequently accessed data across all the computers in the cluster.

Transparent scalability means Oracle9i RAC behaves exactly
like the Oracle9i Database on a single server. Scalability with
availability means all machines in the cluster act as backup for
all the other machines in the cluster. The more machines you add
to the cluster, the more reliable the system becomes.

"Oracle9i Real Application Clusters is a breakthrough
technology. The ability to dramatically scale application without
modification is an invaluable new proposition for customers,"
said Carl Olofson, IDC program director.

"High availability is a key factor, with demands for database
centers to operate 24 hours."

John Zyskowski writes in Federal Computer Network (June 25,
2001) that one of the key tests for the new Oracle database will
be the ease with which users can add servers to the cluster.
Current approaches to clustering typically involve time-consuming
efforts, such as reprogramming software and redistributing data
across the cluster, when adding new servers. Oracle claims the
process with Oracle9i will be far easier.

"It's going to be a straightforward process," said Orin
Merrill, vice president of Science Applications International
Corp. Company officials have done a "pretty close technical
examination" of Oracle9i and plan to upgrade the software in the
next three months for a transportation-management application.

SAIC also sells a traditional license for the same software to
the Energy Department and will recommend that the agency upgrade
to Oracle9i, he said as quoted by Zyskowski.

Oracle9i RAC also offers unlimited performance and is more
economical. Lower cost is a key attraction. Mark Shainman said in
an article in Server Infrastructure Strategies (Nov. 14, 2001),
through 2003-2005, the continued externalization of corporate
information will cause exponential growth in database management
system (DBMS) user volumes. Escalating internal access to
information (e.g. packaged applications, analytic tools, customer
relationship management) will further expand data access avenues.

"This rapid growth of users is driving demand for cost savings
and simplification through the use of capacity-based pricing
models. By 2004/2005, 90 percent of customer database licensing
demand will be for cost-efficient, capacity-based licenses. With
the release of Oracle9i Database, Oracle announced a cheaper and
simplified capacity-based pricing model," he writes.

Oracle will charge customers a per-processor fee for database
licenses, similar to the pricing model used by other database
vendors. The core enterprise edition of Oracle9i software costs
US$40,000 per processor, not including optional modules such as
clustering. The standard edition, excluding support options such
as clustering, will cost $15,000 per processor.

The previous pricing plan that drew the ire of some customers
used a measurement called Universal Power Unit to determine the
license price. With UPU, the price was related to the number and
speed of the processors in the servers that ran the Oracle
database.

Oracle developed the revised pricing model in response to
customer pressure and to make it easier to compare it and its
competitors' prices.

Comparing Oracle9i to a Mercedes Benz, Ellison said good
things didn't come cheap.

However, buyers should be careful when comparing costs.

"Users should not assume that everything they need is part of
that $40,000 (Oracle9i core license). It's not," Mike Schiff, a
vice president with the market research firm Current Analysis,
said as quoted by Zyskowski. "The clustering option, for example,
costs an additional $20,000 per processor. That said, you're
probably still getting good value. The headroom that clusters get
you is significant. And when you come right down to it, you're
trying to get the job done. Price isn't the key factor."

Burton shared Schiff's view, saying (cheap) price is not on
everyone's list.

"People look for security and reliability," he said.

"Security will always be at the top of people's minds post-
Sept. 11," confirmed James Governor, analyst and IT advisor with
UK-based Illuminata, Inc.

Jarvis said there had been a boom in database storage
management following the attacks.

"Remember, information is the enemy of the terrorists."

The company's decision to make Oracle9i application server its
third line of business has raised eyebrows, for Oracle has been
traditionally a database company. Since its release in October,
Oracle9i AS has 8,300 new customers and confirms Oracle's place
in the application server market.

Some users might feel frustrated with Oracle's fast move,
Governor said, but Jarvis said Oracle plans to launch new
database software every 18 months and new applications every 18
months to two years.

Although Oracle claims its software runs on Java-based,
standard-based technology, there is the question of pricing.

For a country like Indonesia, where Oracle has around 450
customers, Oracle remains an exclusive brand. Price, for example,
is a key factor, given the current economic situation.

"It's too expensive for most local companies because the kind
of databases here don't need such sophisticated software as
Oracle provides as yet," said IT analyst Priyambodo.

Priyambodo is also concerned with service support.

"In ASEAN (Association of South East Asian Nations), probably
only Singapore is ready for such high technology. Our human
resources are not prepared to handle such high technology."

"The prospects are there, it's a matter of convincing people
of the importance of a secure database," he said, adding that
Oracle could concentrate on factories that need a 24-hour link
with their headquarters for data exchange and monitoring.

Chris Hummel, vice president for marketing of Oracle Asia
Pacific Division, admitted the shortage of skilled engineers.

To fill the gap, Oracle provides education and training in
various countries, including Indonesia, through cooperation with
the academic world and the government.

"This academic initiative helps build Internet skills from
primary schools to university level," he said.

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The writer was one of 100 journalists invited to cover the sixth
Oracle OpenWorld 2001, held by Oracle Corporation, from Dec. 2
through Dec. 7.
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