Amazon plans to completely abandon the Oracle database in early 2020
Amazon’s development in the data center technology provider has gradually transformed many of its long-standing suppliers into competitors that are difficult to be inclusive. Oracle is one of them. Recently, Amazon is considering a new round of attacks on Oracle. According to people familiar with the matter, the e-commerce giant has moved most of its internal infrastructure to Amazon Web Services (AWS) and plans to completely remove Oracle’s proprietary database software in the first quarter of 2020.
This shift also marks the rapid rise of Amazon in the enterprise computing arena and further demonstrates the hard struggle of Oracle in the process of continuously shifting its work to the cloud platform and abandoning the traditional data center. Thanks to the development of AWS (the business grew by 49% in the second quarter), Amazon surpassed Alphabet at the beginning of this year to become the world’s second-largest listed company.
At the same time, Oracle’s size is roughly the same as it was four years ago, and its share price is slightly higher than the rate at the end of 2014. When the report first came out, Oracle’s share price fell 1%.
Five years ago, Amazon began planning to remove Oracle, an insider who asked for anonymity. Some of Amazon’s core shopping business still relies on Oracle, and the entire migration process takes about 14-20 months. Another person said that in the first few years of the transfer, Amazon had begun to consider giving up Oracle, but the decision at the time was that early action might require more engineering work and had little effect.
Informed sources said that when Amazon faced a significant problem with Oracle, the latter’s database technology could not be extended to meet Amazon’s performance needs. Another person said that the move might be completed in mid-2019, adding that the new technology that relies on the Oracle database has not been developed for quite some time.
Amazon’s infrastructure is not foolproof. During the Amazon Prime Day shopping spree last month, the company’s continued demand for capacity upgrades almost caused a crisis, and the company’s system proved unable to handle the sudden surge in traffic.
The shopper reported many attempts to access the site, and it is said that this issue is related to the collapse of the internal program Sable, which uses Sable to provide storage and services for retail and digital businesses.
The Information reported in January that Amazon is working to reduce its reliance on Oracle. Dr. Brian White, an analyst at Drexel Hamilton, stated to refute the report and cited Oracle Chairman Larry Ellison at the company’s teleconference meeting in December last year. Ellison said, “A company you’ve heard of just gave us another $50 million this quarter to buy Oracle database and other Oracle technologies. That company is Amazon.”
An Amazon spokesperson declined to comment. Oracle spokesman Amazon has spent hundreds of millions of dollars on Oracle’s technology.
The two companies have been in a fierce war of words. Last year, Oracle executives boasted about the cost advantages of using company database software. AWS CEO Andy Jassy retaliated that Oracle “has insufficient strength in the cloud computing space.”
In 2014, after AWS launched the Aurora Guanxu database service, competition became more and more intense. This service straightens the core market of nails. Amazon also provides a tool to help companies move their databases to the cloud.
But in 2016, Ellison told analysts that Amazon’s cloud services are still not ready for prime time. “Our database customers have no way to run important machine jobs on Amazon.”
Since then, however, Oracle has not been able to achieve the significant market share in cloud infrastructure. AWS leads the market, followed by Microsoft, Google, Alibaba, and IBM.
Since the company no longer disclosed the benefits of cloud services in the last quarter, investors have now abandoned speculation about the scale of Oracle cloud services.
Via: CNBC
