Amazon controls close to one-third of public cloud market
Now that we’ve introduced Oracle’s (ORCL) recent acquisition of Ravello Systems, let’s examine how Oracle intends to strengthen its position in the public cloud space with the new buyout.
According to Synergy Research Group recent report, Amazon’s (AMZN) AWS (Amazon Web Services) controlled 31% of the public cloud market in 2015. This market share was distantly followed by Microsoft (MSFT), which holds 9%. IBM (IBM), Google (GOOG), and Salesforce (CRM) commanded 7%, 4%, and 4%, respectively, of the market share. RightScale likewise identifies Amazon and Microsoft as the top two players in the public cloud space, and so it’s safe to assume that these players have some of the largest data centers, servers, storage, and networking architectures in the business.
But how much can Ravello boost Oracle’s public cloud presence?
By acquiring Ravello Systems, Oracle now has its hands on the Ravello’s “nested virtualization” technology as well as on its software-defined networking SaaS (software-as-a-service). SDN (software-defined networking) is a trend of moving from a hardware-centric approach for networking to a virtualized network made to facilitate flexible and application-driven customization of networks. This kind of virtualizing in computing, storage, and network equipment is also considered to be the foundation of IT investment.
By employing Ravello’s virtualization technologies and innovations, Oracle clearly plans a breakthrough into the closely knit public cloud space.
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Keep reading for a deeper look into Oracle’s master plan for the cloud space.