Welcome!

@CloudExpo Authors: Liz McMillan, Pat Romanski, Elizabeth White, Gopala Krishna Behara, Sridhar Chalasani

Blog Feed Post

IBM vs. Oracle, NAD intervenes, again

IBM vs. Oracle, NAD intervenes, again

By Greg Schulz

StorageIO industry trends cloud, virtualization and big data

With HP announcing that they were sold a bogus deal with Autonomy (read here, here and here among others) and the multi billion write off (loss), or speculation of who will be named the new CEO of Intel in 2013, don't worry if you missed the latest in the ongoing IBM vs. Oracle campaign. The other day the NAD (National Advertising Directive) part of the Better Business Bureau (BBB) issued yet another statement about IBM and Oracle (read here and posted below).

NAD BBB logo

In case you had not heard, earlier this year, Oracle launched an advertising promotion touting how much faster their solutions are vs. IBM. Perhaps you even saw the advertising billboards along highways or in airports making the Oracle claims.

Big Blue (e.g. IBM) being the giant that they are was not going take the Oracle challenge sitting down and stepped up and complained to the better business bureau (BBB). As a result, the NAD issued a decision for Oracle to stop the ads (read more here). Oracle at 37.1B (May 2012 annual earnings) is about a third the size of IBM at 106.9B (2011 earnings), thus neither is exactly a small business.

Lets get back to the topic at hand the NAD issued yet another directive. In the latest spat, after the first Ads, Oracle launched the 10M challenge (you can read about that here).

Oracle 10 million dollar challenge ad image

Once again the BBB and the NAD weighs in for IBM and issued the following statement (mentioned above):

For Immediate Release
Contact: Linda Bean
212.705.0129

NAD Determines Oracle Acted Properly in Discontinuing Performance Claim Couched in ‘Contest’ Language

New York, NY – Nov. 20, 2012 – The National Advertising Division has determined that Oracle Corporation took necessary action in discontinuing advertising that stated its Exadata server is “5x Faster Than IBM … Or you win $10,000,000.”

The claim, which appeared in print advertising in the Wall Street Journal and other major newspapers, was challenged before NAD by International Business Machines Corporation.

NAD is an investigative unit of the advertising industry system of self-regulation and is administered by the Council of Better Business Bureaus.

As an initial matter, NAD considered whether or not Oracle’s advertisement conveyed a comparative performance claim – or whether the advertisement simply described a contest.

In an NAD proceeding, the advertiser is obligated to support all reasonable interpretations of its advertising claims, not just the message it intended to convey. In the absence of reliable consumer perception evidence, NAD uses its judgment to determine what implied messages, if any, are conveyed by an advertisement.

Here, NAD found that, even accounting for a sophisticated target audience, a consumer would be reasonable to take away the message that all Oracle Exadata systems run five times as fast as all IBM’s Power computer products. NAD noted in its decision that the fact that the claim was made in the context of a contest announcement did not excuse the advertiser from its obligation to provide substantiation.

The advertiser did not provide any speed performance tests, examples of comparative system speed superiority or any other data to substantiate the message that its Exadata computer systems run data warehouses five times as fast as IBM Power computer systems.

Accordingly, NAD determined that the advertiser’s decision to permanently discontinue this advertisement was necessary and appropriate. Further, to the extent that Oracle reserves the right to publish similar advertisements in the future, NAD cautioned that such performance claims require evidentiary support whether or not the claims are couched in a contest announcement.

Oracle, in its advertiser’s statement, said it disagreed with NAD’s findings, but would take “NAD's concerns into account should it disseminate similar advertising in the future.”

###

NAD's inquiry was conducted under NAD/CARU/NARB Procedures for the Voluntary Self-Regulation of National Advertising. Details of the initial inquiry, NAD's decision, and the advertiser's response will be included in the next NAD/CARU Case Report.

About Advertising Industry Self-Regulation: The Advertising Self-Regulatory Council establishes the policies and procedures for advertising industry self-regulation, including the National Advertising Division (NAD), Children’s Advertising Review Unit (CARU), National Advertising Review Board (NARB), Electronic Retailing Self-Regulation Program (ERSP) and Online Interest-Based Advertising Accountability Program (Accountability Program.) The self-regulatory system is administered by the Council of Better Business Bureaus.

Self-regulation is good for consumers. The self-regulatory system monitors the marketplace, holds advertisers responsible for their claims and practices and tracks emerging issues and trends. Self-regulation is good for advertisers. Rigorous review serves to encourage consumer trust; the self-regulatory system offers an expert, cost-efficient, meaningful alternative to litigation and provides a framework for the development of a self-regulatory to emerging issues.

To learn more about supporting advertising industry self-regulation, please visit us at: www.asrcreviews.org.

Linda Bean Director, Communications, Advertising Self-Regulatory Council

Tel: 212.705.0129
Cell: 908.812.8175
[email protected]

112 Madison Ave.
3rd Fl.
New York, NY
10016

Not surprisingly, IBM sent the following email to highlight their latest news:

Greg,

For the third time in eight months Oracle has agreed to kill a misleading advertisement targeting IBM after scrutiny from the Better Business Bureau's National Advertising Division.

Oracle's '$10 Million Challenge' ad claimed that its Exadata server was 'Five Times Faster than IBM Power or You Win $10,000,000.' The advertising council just issued a press release announcing that the claim was not supported by the evidence in the record, and that Oracle has agreed to stop making the claim. '[Oracle] did not provide speed performance tests, examples of comparative systems speed superiority or any other data to substantiate its message,' the BBB says in the release: http://bit.ly/UGokRw The ads ran in The Wall Street Journal, The Economist, Chief Executive Magazine, trade publications and online.

The National Advertising Division reached similar judgments against Oracle advertising on two previous occasions this year. Lofty and unsubstantiated claims about Oracle systems being 'Twenty Times Faster than IBM' and 'Twice as Fast Running Java' were both deemed to be unsubstantiated and misleading. Oracle quietly shelved both campaigns.

If you follow Oracle's history of claims, you won't be surprised that the company issues misleading ads until they're called out in public and forced to kill the campaign. As far back as 2001, Oracle's favorite tactic has been to launch unsubstantiated attacks on competitors in ads while promising prize money to anyone who can disprove the bluff. Not surprisingly, no prize money is ever paid as the campaigns wither under scrutiny. They are designed to generate publicity for Oracle, nothing more. You may be familiar with their presentation, 'Ridding the Market of Competition,' which they issued to the Society of Competitive Intelligence Professionals laying out their strategy.

The repeated rulings by the BBB even caused analyst Rob Enderle to comment that, 'there have been significant forced retractions and it is also apparent that increasingly the only people who could cite these false Oracle performance advantages with a straight face were Oracle's own executives, who either were too dumb to know they were false or too dishonest to care.'

Let me know if you're interested in following up on this news. You won't hear anything about it from Oracle.

Best,

Chris


Christopher Rubsamen
Worldwide Communications for PureSystems and Cloud Computing
IBM Systems & Technology Group
aim: crubsamen
twitter: @crubsamen

Wow, I never knew however I should not be surprised that there is a Society of Competitive Intelligence Professionals.

Now Oracle is what they are, aggressive and have a history of doing creative or innovative (e.g. stepping out-of-bounds) in sales and marketing campaigns, benchmarking and other activities. On the other hand has IBM been victimized at the hands of Oracle and thus having to resort to using the BBB and NAD as part of its new sales and marketing tool to counter Oracle?

Does anybody think that the above will cause Oracle to retreat, repent, and tone down how they compete on the field of sales and marketing of servers, storage, database and related IT, ICT, big and little data, clouds?

Anyone else have a visual of a group of IBMers sitting around a table at an exclusive country club enjoying a fine cigar along with glass of cognac toasting each other on their recent success in having the BBB and NAD issue another ruling against Oracle. Meanwhile perhaps at some left coast yacht club, the Oracle crew are high fiving, congratulating each other on their commission checks while spraying champagne all over the place like they just won the Americas cup race?

How about it Oracle, IBM says Im not going to hear anything from you, is that true?

Ok, nuff said (for now).

Cheers Gs

Greg Schulz - Author Cloud and Virtual Data Storage Networking (CRC Press, 2011), The Green and Virtual Data Center (CRC Press, 2009), and Resilient Storage Networks (Elsevier, 2004)

twitter @storageio

All Comments, (C) and (TM) belong to their owners/posters, Other content (C) Copyright 2006-2012 StorageIO All Rights Reserved

Read the original blog entry...

More Stories By Greg Schulz

Greg Schulz is founder of the Server and StorageIO (StorageIO) Group, an IT industry analyst and consultancy firm. Greg has worked with various server operating systems along with storage and networking software tools, hardware and services. Greg has worked as a programmer, systems administrator, disaster recovery consultant, and storage and capacity planner for various IT organizations. He has worked for various vendors before joining an industry analyst firm and later forming StorageIO.

In addition to his analyst and consulting research duties, Schulz has published over a thousand articles, tips, reports and white papers and is a sought after popular speaker at events around the world. Greg is also author of the books Resilient Storage Network (Elsevier) and The Green and Virtual Data Center (CRC). His blog is at www.storageioblog.com and he can also be found on twitter @storageio.

@CloudExpo Stories
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.