Welcome!

@CloudExpo Authors: Jyoti Bansal, Liz McMillan, Elizabeth White, Mehdi Daoudi, Christopher Harrold

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
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, drew upon his own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He also discussed the implementation of microservices in data and application integrat...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix ...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices 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 business opportunity. Submit your speaking proposal ...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...