Oracle's Database Future Could Be Dimming
We believe customer switching costs are decreasing.
On Jan. 2, technology news outlet The Information published a report suggesting that hyperscale cloud vendors Amazon (AMZN) and Salesforce (CRM) are aggressively moving down the path of migrating operations off Oracle’s (ORCL) database technology and onto open-source and/or internally developed solutions. The Information’s report cites sources with knowledge of the projects underway at Amazon and Salesforce to overhaul their technology stacks, though neither company had directly commented on the story as of this writing.
While the news of Salesforce’s efforts to move off Oracle are not necessarily new (the rumored Project Sayonara has been a relatively open secret for some time), the news of Amazon potentially shifting its internal operations would lend credence to our belief that Oracle’s database business faces a murkier future than consensus believes.
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