Why Oracle Corporation (NYSE:ORCL) Is In Microsoft (MSFT)’s And Amazon (AMZN)’s Crosshairs?
Oracle Corporation (NYSE:ORCL) has increasingly come under the attack of Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN) in recent months. The two are not particularly working on concert, but they have a common agenda – to weaken Oracle’s database business. But why are they doing that? Oracle’s cofounder, Larry Ellison, recently tried to explain the war and it is amusing.
According to Ellison, Oracle Corporation (NYSE:ORCL) is the database company for all to beat. There is nowhere else Microsoft and Amazon can look to grow their database operations than to try and steal customers from Oracle. Ellison puts it as though Oracle sets the standards for rivals to struggle to meet.
Oracle Corporation (NYSE:ORCL) claims to be so successful in database business that Microsoft and Amazon will have a tough time in attempting to shrink its market share. For example, Ellison explains that Oracle’s database environment is so sticky that customers face high barriers when they attempt to leave. He says that any customer seeking to ditch Oracle’s database will have to rewrite their applications, which is a daunting task for anyone to attempt.
Ellison says Oracle is not worried at all about Microsoft’s or anyone else’s attempt to steal their database customers. He even thinks it is Microsoft and Amazon that should be very afraid if they have to face Oracle in the contest for database market.
Rivals don’t believe Ellison
Ellison can downplay the threat of Microsoft and Amazon as much as he wants, but the writing seems to be on the wall. These rivals are steadily finding a way around Oracle Corporation (NYSE:ORCL)’s walls and they could trigger a massive outflow of its database customers. For example, Microsoft is not only presenting itself as the best alternative to Oracle when it comes to database offering, but it is also enticing Oracle’s customers with free migration. Additionally, the company is simplifying the process for customers seeking to ditch Oracle environment.
On its part, Amazon claims it stole at least 1,000 Oracle database customers with its own database offering which was still in beta phase.
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