As you all know, I’m a huge advocate for Oracle’s database technologies and Amazon Web Services IaaS platform. There is no denying that these two corporations have built awesome systems that can be leveraged to support enterprises of all sizes – it’s like a perfect relationship. However, there is trouble in tech paradise. AWS CEO Andy Jassy says Amazon will be off Oracle databases by the end of 2019. What does this breakup really mean and why should you be excited about it?
It makes business sense for AWS to move their internal business from Oracle database technology onto their own platform. If AWS wants to be a competitor in the database market, then this move is not only sensible, but it is also necessary. Being able to run on Redshift or Aurora will allow AWS to enhance their database platform, strategically market their services, and become a key competitor in the database sphere. AWS is attempting to market their database services as a competitor to Oracle, however, they are having a hard sell because they are running on Oracle platform. AWS is looking to change this dynamic in order to get a bigger piece of the pie.
Both AWS and Oracle have huge egos. They are two tech giants that share a common interest, notably database platforms and public cloud offerings. The problem is Oracle’s CTO Larry Ellison just can’t help but yap about how the biggest cloud providers run on Oracle. Ellison’s frequent quotations about how rivals are running on Oracle blends sales pitch and taunting. The problem with repeated taunting is that eventually somebody gets punched. AWS is at the point where they are looking to deliver a huge blow to Oracle’s bottom line by first becoming independent of Oracle and also proving to consumers that Oracle is not the golden standard for complex data management solutions. At this point it’s not only about business, but it’s also about bragging rights.
As companies grow they form new business partnerships and dissolve old ones. That’s just how it is in the corporate world. Partnerships have many advantages: they allow businesses to negotiate below market rates, pool complementary skill sets, etc. That makes them one of the most common ways of achieving success in business. Unfortunately, many of the advantages of partnerships can also be disadvantages, especially when the parties involved in the partnerships start competing for the same market space. Inorder to become an industry leader and turn profit, corporations have to brand and promote their services as the best in the market. It is very difficult to accomplish this if they are relying on support from competitors. Clashes between two tech giants such as AWS and Oracle are unavoidable. There is only one seat for first place and both companies are fighting for that seat.
Customers stand to benefit from this break-up. Both Oracle and AWS are working hard to get the customer’s business. This means that they are innovating their platforms and also re-thinking their product fees. I think that such corporate competition is healthy because it results in a more efficient and cost-effective product. The real winner in this break-up is the customer.