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Oracle's founder and CTO, Larry Ellison, has been talking for two years about its largest database, but on Thursday, the company took stock of sales of the newly introduced cloud version.
Oracle calls this product the stand-alone database because it automatically applies security patches and "self-regulates" itself to improve performance. The database was first announced in 2017, but a new service called Gen2 by Oracle, which offers the database in the Oracle cloud with a set of special security features, was announced in October.
As part of its third quarter fiscal year 2019 earnings report, Ellison said Thursday that the database now has close to 1,000 customers and is currently undergoing testing. 4,000 users elsewhere.
"We're still in the early stages, but it's the most successful introduction of a new product in forty years, Oracle," Ellison said.
During the quarterly conference call with analysts, he also explained that the database was essential for the future of Oracle.
"The future of Oracle is based on two strategic activities: cloud applications and the cloud infrastructure," he said.
Read: How Oracle inadvertently helped Nvidia spend $ 6.9 billion to win a deal with Intel
To date, much of the revenue derived from Oracle's cloud is based on its cloud application business, which includes its financial applications (known as enterprise resource management or ERP) and its applications for cloud computing. human resources (known in the world of business applications as human capital management or HCM). ).
But the new database is one of the pillars of the cloud infrastructure component, says Ellison, and this is how the company plans to embark on gigantic Web services, Amazon Web.
AWS offers its own cloud databases, including Aurora and Redshift, and very deliberately targets Oracle customers. It even went as far as creating a tool to facilitate the switchover of your database from Oracle to AWS.
Ellison is ready for the fight. Seeking greater security and faster performance, Oracle is trying to convince businesses to connect to their cloud and not use Amazon.
"Our infrastructure technology is very different from that of AWS.Each of our cloud computers has a separate security processor and memory to prevent clients from getting lost." to intrude into each other, "he said.
Ellison likes to say that this speed and power will allow customers to save money. AWS managers say their databases work better because customers build their software in the cloud. Indeed, Amazon likes to distort Oracle's business model and the treatment it gives to its customers.
At Thursday's analyst call, Ellison spoke about a client, a university that he did not name, who dropped AWS for the cloud and the Oracle database.
"We have a customer who has done a series of tests – they are AWS users – we have these AWS ads that promise to cut your bills in half." They found that we ran 11.5 times faster than AWS and reduced their bill by 80%, "he said.
This university used an application using machine learning and computer vision to analyze tissue samples and cancer cells. It is therefore worth noting that this is not a typical way of using a database, compared, for example, to the storage of employee information lists or sales transactions.
This sunny view of the important Oracle database product was part of the third quarter results, which outperformed earnings and earnings over Wall Street estimates.
Oracle recorded a business turnover of $ 9.61 billion, down 1% from the same quarter last year, exceeding forecasts by $ 20 million. Non-GAAP earnings per share were 87 cents, exceeding expectations of 3 cents. GAAP EPS was 76 cents.
As Oracle no longer lights up its revenue in the cloud, it's hard to understand how important this business is in terms of sales. Management has discussed "double-digit" growth rates, which would be an increase in the stakes of the table for a company that is turning from an old-school software manufacturer into a cloud company.
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