(continues below, source below) Oracle customers and partners say that Larry Ellison may never achieve his dream of toppling Amazon, but the future of its cloud looks bright anyway
BENJAMIN PIMENTEL SEPTEMBER 21, 2019
Oracle founder Larry Ellison sees the tech giant eventually beating Amazon in the cloud, given its tech arsenal and huge customer base.
We talked to some customers and partners who believe Oracle could play a bigger role in the cloud, but faces an uphill fight against Amazon.
"Oracle is late to the game," one partner told Business Insider. "They're playing catch up and it's really, really hard to play catch up."
So while Oracle may never topple Amazon in the cloud infrastructure market, there's still a silver lining for the database giant: Its cloud applications are growing fast, and it has a huge amount of existing customers who haven't necessarily even begun moving to the cloud.
A few days before Oracle began its OpenWorld event in San Francisco, Larry Ellison, the tech giant's founder, acknowledged that building a cloud system is hard — and grudgingly admired the way rival Amazon has shown rivals how it's done.
"A lot of people have tried to build cloud systems," Ellison told analysts during Oracle's earnings call. "It's not easy. I can attest to that. I have lots of scars...Our approach, I mean, sometimes they're critical of Amazon. Sometimes I try to learn from what they do. I mean, they were the innovator in cloud, and I give them credit for that."
But Oracle is fighting back, Ellison has said, painting a future when his company would one day play a much bigger —, if not dominant — role in a market now dominated by Amazon, Microsoft and Google.
That message reverberated at the convention where Ellison pivoted back to a more combative tone against Amazon, reminding attendees of the Capital One data breach believed to have been caused by user error that allowed an attacker to breach an Amazon cloud server and steal personal information from millions of customers.
Ellison takes aim at Amazon
"Clouds are complicated," Ellison said in his speech, in which he again touted Oracle's cloud platform as being far more secure than Amazon's. "The Amazon data breach where Capital One had 100 million of their customers lose their personal information happened because of a mistake...In the AWS cloud, if you make an error, and it leads to a catastrophic data loss, that's on you."
At the conference, some customers and partners expressed optimism about Oracle's chances in the battle against Amazon, even as they pointed to hurdles and some serious baggage the company brings to the fight.
Christian Primeau, global CEO of Syntax, a cloud management services company that works with Oracle, Amazon and Microsoft, said he definitely sees Oracle eventually joining the top tier of the cloud market.
But beating Amazon is another story, he said.
"I think Oracle is going to make it into that quadrant," he told Business Insider. "Are they going ahead of Amazon and, if so, how long is it going to take? Your guess is as good as mine...Oracle is late to the game. They're playing catch-up and it's really, really hard to play catch-up."
Amazon last year owned nearly half of the $32 billion cloud infrastructure market, which covers basic components of a cloud platform including access to servers and storage, according to Gartner. It was followed by Microsoft with 16%. Oracle was not in the top 5, though Google, Alibaba and IBM were.
Oracle was fifth-place in platform services, the segment that makes it easier for customers to create and run applications with programming tools and processes. It is in cloud applications, also known as software-as-a-service, where Oracle is strongest, coming in behind only Microsoft and Salesfore, according to Gartner.
SOURCE: https://www.businessinsider.com/oracle-customers-partners-larry-ellison-amazon-web-services-fight-2019-9