Niche technologies eroding Oracle Corporation (NYSE:ORCL)’s base

Posted by Nathan Alexander July 29, 2013 0 Comment 1566 views


Oracle Corporation (NYSE:ORCL) is nothing less than a mammoth in its field. But to a certain extent, this also means that the company may be undermining the threat that it faces from numerous upstarts in the business. Niche technologies are putting in a tough fight and luring the company’s present and prospective customers. Of course, it is a well-known fact that ORCL boasts of a very high-end clientele and its customers are some of the biggest corporations in their respective fields. In addition, the company also has a big chunk of the private sector business.

So what is it that is bringing about a change in the landscape? The fact is that with the current economic condition across the world, longtime existing customers are looking for means of cutting-costs and breaking free of the overtly priced licensing that comes with the territory. On the other hand, comparatively younger companies are not really well-acquainted with Oracle’s technology and efficacy and will settle for services that upstarts provide, if the price is right.

Trending away from the biggie

Customers are migrating away from ORCL and heading for lesser-known companies. The Postgres company CEO, Ed Boyajian said that that over the past 2-3 years, 20-30 migrations from Oracle have moved to them. Datastax is a company that assists in the development of Cassandra. This is a “NoSQL” data-store that is based on various technologies that are based on Facebook and Google. It has seen more than 30 migrations from Oracle.

Ellis, the Datastax CEO said that the primary motivation is scale and the second main affecting factor is that some people are being motivated by geographic redundancy. They prefer keeping the data updated in more than one data center. At the moment, the shift seems to be a significant one and will be more noticeable over the next few years.


About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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