Oracle challenges the world with 'Unbreakable' products

Lela E. Madjiah, The Jakarta Post, San Francisco, California

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, since its introduction the "can't break it challenge" has attracted 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 (RAC) 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 a 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 entire 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, during a news briefing at Oracle OpenWorld 2001.

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

John Zyskowski writes in the June 25, 2001, issue of Federal Computer Network 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.

Oracle9i RAC also offers unlimited performance and is more cost-efficient. Lower investment is a key attraction. Mark Shainman said in an article in the Nov. 14, 2001 issue of Server Infrastructure Strategies, 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 competing database vendors. The core enterprise edition of Oracle9i software costs US$40,000 per processor, not including optional modules such as the one that enables 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 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.

"I guess the key news is around the application server market. There's no sign of let up on the applications side. I wouldn't be more surprised that they want to own everything. Ellison wants to own as much of the industry as he can," said Governor.

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 RH.

Priyambodo is also concerned with service support.

"Within ASEAN, 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.

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.