You would expect that a 90% reduction in usage would result in a 90% reduction in Oracle support costs. Let’s say an Oracle customer can reduce their Oracle database usage from 1000 licenses to 100 licenses. Oracle has also locked in customers through onerous contractual terms. In many cases they can move everything away from Oracle except those databases “running Oracle eBusiness Suite”. If you want to move away from Oracle database, you have to move away from Oracle ERP, and that’s where there is a huge cost. We’ve helped many clients analyze their Oracle database usage as they are attempting to move off Oracle. Even if the application can technically run on a non-Oracle database, Oracle terms and conditions require the Oracle database to be licensed as well. Pretty much all the applications they’ve acquired now have to run on an Oracle database. Oracle has made well over 100 acquisitions over the years. These include Oracle Financials, Peoplesoft, Siebel, Hyperion, etc, etc. Many Oracle customers use Oracle applications. So why is Oracle database so sticky? Two reasons – applications and contracts. This is very different from 30 years ago when Oracle software was a must for any company looking to grow. In almost all circumstances, a non-Oracle database is sufficient for a customer’s application. Today, new companies have a choice in databases: open source databases, Sql Server, DB2, and others can do 95% of what Oracle’s database does. While the article is (still) an interesting read, it completely missed the point of why customers really can’t get off Oracle. Later that year, an article came out on CNBC detailing Amazon’s move away from Oracle, and Oracle’s response – basically saying that it was never going to happen. Oracle’s stock took a hit when this news broke, and Oracle’s senior vice president of investor relations, Ken Bond, sent a note to investors calling the report “stupid stuff”. This news story became a bit of a firestorm for Oracle. In a 2018 article by Kevin McLaughlin at The Information, picked up by outlets including CNBC, Marketwatch, and Yahoo, it was reported that Amazon and Salesforce had major initiatives in place for moving off Oracle products and services.
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