Sunday, May 15, 2016

Oracle runs to Cloud, where will DBA go? (2)

As an Oracle DBA, you might think why Oracle cares so much about "CLOUD". For years, Oracle has been the No.1 RDBMS in the market.

RankDBMSDatabase ModelScore
1.1.1.OracleRelational DBMS1462.02-5.51+19.93
2.2.2.MySQL Relational DBMS1371.83+1.72+77.56
3.3.3.Microsoft SQL ServerRelational DBMS1142.82+7.77+11.79
4.4.4.MongoDB Document store320.22+7.78+42.90
5.5.5.PostgreSQLRelational DBMS307.61+3.89+34.09
6.6.6.DB2Relational DBMS185.96+1.87-15.09
7. 8. 8.Cassandra Wide column store134.50+4.83+27.95
8. 7. 7.Microsoft AccessRelational DBMS131.58-0.39-14.00
9.9. 10.Redis Key-value store108.24-3.00+13.51
10.10. 9.SQLiteRelational DBMS107.26-0.70+2.10

Source: DB-Engines Ranking (as of May 2016)

Source: Gartner (October 2015)

However, when you scrutinize the latest company financial report (March 15, 2016), you will know why Oracle worries about its existing database business and cares more about "CLOUD".
  • Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were$583 million, up 57% in U.S. dollars and up 61% in constant currency. 
  • Cloud infrastructure as a service (IaaS) revenues were $152 million, down 2% in U.S. dollars and up 2% in constant currency. 
  • Total Cloud Revenues were $735 million, up 40% in U.S. dollars and up 44% in constant currency. 
  • Total On-Premise Software Revenues were $6.3 billion, down 4% in U.S. dollars and unchanged in constant currency. 
  • Total Hardware Revenues were $1.1 billion, down 13% in U.S. dollars and down 8% in constant currency. 
  • Total Services Revenues were $793 million, down 7% in U.S. dollars and down 2% in constant currency.
According the report from Fortune, "as for Oracle’s third quarter, sales of new software licenses for products that run on-premises fell 11% year over year. That on-premises category makes up 70% of Oracle’s overall revenue, so there’s reason for concern there." 

Also, when you check the above Gartner Magic Quadrant figure, you will find out Gartner placed Microsoft ahead of Oracle within the LEADERS's quadrant. It is not because of the market share of RDBMS, but the result of Microsoft's recent investments in its data platform, including Azure DocumentDB, the managed NoSQL database in the cloud. Microsoft SQL Server is also popular not only on-premises but in the cloud. In May, Microsoft also announced the SQL Server will soon be available on Linux.

On the other front,  Amazon which is considered as the absolute leader of cloud computing also grabs huge database market share and is surprisingly in the LEADERS's quadrant just below Oracle. As we all know, AWS offers Amazon RDS and Amazon DynamoDB. Last year, Amazon also launched its own database engine called Aurora as a new database service on the AWS cloud.

We don't even mention the competition from IBM (DB2) and SAP (SAP HANA) as well as other vendors like Teradata and tons of open source or NoSQL databases (MongoDB, Cassandra, CouchDB, etc.).

Oracle might still have years to collect money from its traditional RDBMS product and service, but Larry has to fight in the CLOUD. It matters.

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