How Is Amazon Threatening Oracle in the Database Space?
Customers’ vendor lock-in dilemma
Commenting on the dominance and competition Oracle poses to other players, Dave Bartoletti, a principal analyst at Forrester Research, said, “Every year one goal for most companies is to reduce spending on Oracle and VMware, and every year IT comes back and say ‘we didn’t do it’- that’s because, to reduce spending on Oracle and VMware requires risk and money.”
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Client stickiness owing to dependence on its database and the associated costs in shifting to another database gives Oracle the benefit over its peers.
Amazon aims to limit database dominance of selected vendors
However, this doesn’t mean that customers like the lock-in experience they experience with Oracle’s, VMware’s (VMW), SAP’s (SAP), Microsoft’s, and IBM’s databases. Given more feasible options, they could want to switch.
Amazon (AMZN) has acknowledged this opportunity in the database space and has strategically launched new offerings for the broader IT (information technology) demographic. It’s targeted Oracle with Aurora in database space.
Aurora is a database migration tool that automates the migration of on-premises Oracle SQL or Microsoft server databases to Amazon Web Services. In 2016, Amazon launched its own managed version of PostgreSQL. PostgreSQL is an open-source database that’s enterprise-oriented.
By launching specific offerings, Amazon aims not only to reduce competition but also to provide an appealing option to customers looking for ways out of vendor lock-in situations.