The rise of cloud computing enterprises and the shaking of Oracle database market dominance

He said in an interview that ：“ Just running the channel system takes a lot of time and energy .” When evaluating other options in the market ,Shutterly Find out , Oracle system “ It doesn't meet the level of openness and flexibility we expect ”.

With the prosperity and development of database products , Many companies are exploring more options than Oracle . Due to the overall changes in the enterprise technology market , Enterprises are choosing to work with MongoDB、Databricks and Snowflake Cooperation with new manufacturers .

The migration to cloud computing is challenging the old model . New suppliers are trying to make the direct application of technology easier , So that the enterprise procurement department does not need to negotiate large contracts with the supplier's sales personnel , At the same time, it makes it easier for the final demander to choose their tools . The new company's products will not be like Oracle database , It requires a large team of database administrators to manage . therefore , Enterprises will no longer need to compete with other companies for these sought after engineers , And save a lot of cost .

This shift in the industry is taking place on a very wide scale . JPMorgan Chase has chosen Cockroach Labs As a database supplier , Support its new retail banking business in Europe . NASDAQ is working with the private sector Databricks And Amazon AWS Wait for suppliers to cooperate , Upgrade on the basis of Oracle database deployed locally .AWS competitors Microsoft Azure And the database products provided by Google cloud are also developing rapidly . JetBlue and Automatic Data Processing Many enterprises are using Snowflake To store and analyze company data , Used to support many scenarios such as the sales console .

Nicholas, senior vice president of cloud computing strategy and enterprise architecture at NASDAQ · La bastier （Nikolai Larbalestier） Express ：“ actually , We are rapidly reducing our reliance on Oracle . There are many good choices at present .”

overall , These changes are on a scale 1550 Only a small part of the $billion database market , However, it also clearly shows that , Great changes are taking place in the industry . Since Oracle co-founder Larry · ellison （Larry Ellison） And his team have brought the first relational database to the market , Oracle in the past 43 The leadership established in the middle of the year is under threat . Relational databases can organize distributed information 、 Put it in a table , So that it can be accessed more easily 、 Operation and Analysis .

For all that , Oracle is still the industry leader , And achieved sustained quarterly profit growth . The Austin, Texas based company will report its fourth quarter results on Monday , Analysts expect revenue to grow year-on-year 4%, to 117 Billion dollars , Much higher than those of emerging competitors . Besides , Oracle has just completed the 283 $billion acquisition of electronic medical record services Cerner Transactions , Opens up an important area of potential growth .

Morgan Stanley analyst Keith Weiss stay 6 month 6 In a research report on the th ：“ Oracle brings interesting opportunities , Better than expected EPS growth in volatile markets .”

Database is very important to modern life . today , All online services 、 Both retail transactions and medical procedures are supported by databases , These databases record users' choices and results . The enterprise dashboard that executives use to manage their day-to-day operations is also supported by Oracle and other companies' database technologies .

The influence of Oracle in the development of database technology is needless to say . Although cloud computing has developed rapidly and attracted a lot of attention , However, many large enterprises still use databases deployed in internal data centers , It was founded on 2000 Companies almost certainly used mainframes before . Technology transformation from local data center or mainframe is very difficult , Large enterprises will not make such changes easily . however , Many companies are beginning to choose a step-by-step approach ： Maintain the operation of old systems based on Oracle technology , At the same time, find new technology suppliers for new projects .

MongoDB CEO Dev Ittycheria In an interview ：“ Users don't wake up and say , They need to replace existing Oracle data . Although many new applications are exploding , But that's not a big part of our business . At the same time, we see , Customers who migrate from traditional relational databases such as Oracle have a very high conversion rate .”

So at least for the foreseeable future , Oracle will continue to play an important role in the industry . According to market research company Gartner The data of , Oracle's database business 2020 Annual revenue is estimated to be 156 Billion dollars . Oracle did not specifically disclose the financial performance of its database business , Most of the company's revenue comes from providing support and maintenance to existing customers , Not new sales .

However , Oracle's influence is slowly declining . according to Gartner The data of ,2019 In, Oracle's share in the database market was about 27%, But to 2020 Years down to 24%. meanwhile , Amazon AWS Its market share is from 17% Up to near 21%.

Oracle declined to comment on the report .

Competitors are rising rapidly . for example ,MongoDB Revenue growth in the last quarter 57%, to 2.85 Billion dollars . Analysts and company executives believe that , This result shows that , Enterprises are putting MongoDB For larger and larger projects .

Part of the reason for this change is the rise of Cloud Computing . Cloud computing enables enterprises to get rid of traditional suppliers , Choose a more professional system . Such systems support specific applications or work tasks through customized development .

HashiCorp Help customers manage applications across cloud computing platforms , The company's chief technology officer Dave McJannet Express ：“ Whenever infrastructure is transformed , The core market will readjust . Customers no longer deploy Oracle systems .”

The products of other companies have advantages in some specific aspects . for example ,Timescale And other suppliers' databases are good at capturing information within a specified time range , For example, a user in the past 5 The number of times you log in to a game platform in a day .Redis Labs The memory database can scan data , Complete the data query in a few milliseconds , Without having to store data in a separate data center . therefore , Customers can easily analyze data from networked sensors , To determine whether the machine needs maintenance .

The transformation to cloud computing and the transformation of database working methods have increased the demand for technology developers , Relevant developers are gaining greater influence in the organization . In the past , Application development requires a database administrator team . They are responsible for managing the standard database , And make it meet the needs of the company . The salary of this kind of talents is very high , For many enterprises, they can't afford .

for example , Anderson, a well-known venture capitalist - Horowitz invested in video game developers Mythical Games Although the valuation is as high as 12 Billion dollars , But the CEO John Linden Think , It is impossible to recruit the engineers needed to support Oracle database . He said ：“ Oracle calls us every week , But we have to build a huge team , To run Oracle's database normally .”

Mythical Games Then I chose Cockroach Database products , On this basis, the application will be developed and operated quickly . For start-ups and large enterprises , This can save a lot of costs .

JLL Technologies Chief data Officer Yao Morin said ：“ If I tell a job seeker , We mainly use Oracle system , I can't even get people . People crave better tools .”

however , Although some companies have left Oracle , However, many customers continue to use Oracle products for various reasons .

First , Oracle has very powerful and reliable technology . A spokesman for pharmaceutical company Modena confirmed , When the company conducts clinical trials of novel coronavirus vaccine , partners Medidata Solutions Oracle's database is used to manage and analyze billions of records . Oracle has a long history of cooperation with many large enterprises around the world . Although many companies are clearly aware of , We should invest in technological development , But still want to avoid risk , Stick to traditional systems , Instead of starting a large-scale 、 Complex technical transformation .

Oracle has good business reasons to continue to emphasize the database business ： A large part of the company's revenue comes from existing customers . Working for Oracle 16 year 、 Consultancy, Palisade Compliance Co founder and CEO Craig Guarente Express , Every few years , When the customer has to renew the contract , Oracle will raise the price of maintenance and technical support . The profit margin of this business has been maintained at 95% about .

He said ：“ All the profits of the company come from maintaining Oracle's database .” At each contract negotiation ,“ You never have to pay for a year 2000 Thousands of dollars , To a year 3000 Thousands of dollars , Another year 5000 Thousands of dollars .”

Oracle's dominance has also raised questions among analysts , That is, when smaller competitors persuade customers to abandon Oracle products , How much success can be achieved , Especially in the most critical business areas .

however , The competition is still getting fiercer . When American Tire Distributors When seeking to upgrade a locally deployed database to a cloud computing database , The company chose MongoDB. Although declined to disclose which supplier's products were used before , But the company's chief information and digital Officer Murali Bandaru Express , The leading industry relational database no longer has the ability to handle most digital priority businesses .

“ Our system is for the past 10 Built for the development of .” He said ,“ We must liberate these data into a more modern system .”