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Larry Ellison delivered his Oracle Openworld Oracle speech on Monday and of course he took several shots at AWS. According to him, his company's cloud products were cheaper, better and faster than AWS, but what would you expect from him then?
He unfolded a slide with all the facts and figures in case you had doubts. He summed it up in a nice little marketing package with a view of the whole world. Oracle has a self-repairing standalone database. AWS? Nope. That, he is right.
Slide: Oracle
He claims that his cloud computing products are faster and cheaper, claims that are difficult to justify given the difficulty of setting prices and cloud speeds of all providers. He says that they have no disaster recovery when they do it. Nothing of that
It was about the staging. It was about beating the chest and attacking the market leader because frankly, the man had little choice. Now, it is well established that Oracle was late in the cloud. Larry Ellison has never been a fan and he has explained it over the years, but today, as the world moves towards a cloud model, his company has had to evolve.
The transition was not easy. The company has required substantial investments to build its infrastructure and support a cloud model. It took a big change in the way sellers sell the product. The cloud is based on a subscription model and requires more of a partnership approach with customers. Oracle does not exactly have the reputation of playing well.
Even worse, the late start of Oracle puts it far behind the market leader, AWS. For example, Ellison shouted at the rooftops how much better his company's solutions were and how uncertain the competitors were. Synergy Research, which closely follows the cloud market, has set Amazon's cloud market share at around 35 percent. Oracle is one-digit in the most recent data from last summer (and the market has not changed dramatically since the release of this data).
At the time, Synergy had identified the four biggest players like Amazon, Microsoft, Google and IBM, and Alibaba would soon see the light of day. Synergy's chief analyst, John Dinsdale, said that Oracle was lagging behind. "We have seen Oracle lose market share over the last few quarters with IaaS, PaaS and the managed private cloud," he said. "In a growing market of 50% per year, Microsoft, Google and Alibaba are all gaining market share, while the market leader AWS remains stable," he added.
To his credit, the company recorded gains via its SaaS business. "While Oracle is striving to convert its vast customer base of on-premise SaaS software, Oracle has increased its market share in the SaaS markets in 2016 and 2017. Its share of market is then maintained in the first half of 2018, "said Dinsdale.
However, the company stopped announcing its revenue in the cloud last June. As I wrote at the time, this is not usually a good sign:
The fact that Oracle chose not to generate revenue in the cloud this quarter can not be considered a positive sign. To be honest, we did not see Google go out of business in the cloud, with one exception in February. But when the most prominent market players talk about their growth and those who are lower do not, you can draw your own conclusions.
In addition, Oracle protested the Pentagon's $ 10 million JEDI contract, saying it had been written to favor Amazon over other providers, which the Pentagon denied. This did not prevent Oracle from filing claims or even bringing his case directly to the President.
At least Ellison might have had some good news yesterday. CNBC reported that Amazon's big blackout in July may have been related to the abandonment of Oracle's current Oracle databases. (Werner Vogels of Amazon has strongly denied this statement Twitter.)
Anyway, Oracle is in an unknown position. After years of domination, he is stuck in the pack. When you find yourself in such a position, you have to have a loud bark and Ellison attacks AWS fiercely. As the undisputed market leader, it has few other options at the moment.
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