Oracle exec calls Amazon’s cloud model 'unprofitable'

Cloud computing models from companies like Amazon and Google are “unprofitable,” according to a senior executive from Oracle.

Thomas Kurian, senior vice president of Oracle Fusion Middleware, said he believed the company’s style of cloud computing is not economically viable - but still would not rule it out for Oracle’s future.

At the launch of Fusion Middleware (OFM) 11g today, Kurian said: “Amazon is a different player than us. It offers you hardware and space. We don’t think the economics of this sector is profitable and we are not focused on just renting hardware.”

However when IT PRO asked Kurian to confirm Oracle would not go down this route, he refused.

Oracle’s products are cloud compatible and it does offer space in its Texas data centre, but its “cloud strategy,” as Kurian referred to it, for now is making compatible products rather than creating a cloud of its own.

The mention of hardware led to many questions surrounding the company’s impending acquisition of Sun Microsystems but again, Kurian kept quiet and insisted on questions focused around the launch of OFM.

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