Oracle Bucks the Pricing Trend in the Cloud
Oracle takes on Amazon’s AWS
A lot has transpired in the cloud computing vendor world so far this year. Oracle (ORCL), Amazon (AMZN), and Microsoft (MSFT) announced the expansion of their cloud footprints. Alphabet’s (GOOGL) Google stated that going forward, it plans to focus on competing on service value rather than pricing.
For Google, there is urgency in trying to attract customers to its cloud. The company is considered one of the cloud computing underdogs alongside Oracle. It also needs to speed up diversification of its revenue streams as it faces a growing wave of competition in its core advertising business.
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Oracle rejects underdog description
Oracle has been an active player in the cloud computing space. Its co-founder, Larry Ellison, has on several occasions claimed that Oracle is the leader of cloud vendors.
Oracle raising prices as Amazon cuts them
Oracle has been acting as if to buck cloud computing pricing trends. Amazon and Microsoft have been waging cloud pricing wars, with Amazon recently trimming AWS costs by as much as 21% on certain services.
However, Oracle has been hiking prices. Earlier this year, the company updated its licensing policy in a fashion that dramatically increased the cost of running Oracle software on AWS and Azure, Microsoft’s cloud platform. Oracle doubled the cost of running its database on these foreign clouds.