Success in old it was a big reason why Oracle was late to the new sort: cloud computing. Mr Ellison long dismissed it as a faddish label for existing technology. By the time he realised it was an epochal shift in it, Oracle had fallen behind. Oracle Cloud Infrastructure (oci), as it calls its offering, is said to have sales of less than $2bn annually, compared with more than $40bn for Amazon Web Services (aws). The e-commerce titan’s market-leading cloud unit is valued at several times Oracle’s market capitalisation of $178bn. Cloud-based rivals of the sort that Mr Ellison once dismissed, such as Adobe and Salesforce, are worth around a quarter more than his firm.
Even in databases, Oracle’s core business, the world has moved on. For many new applications, such as customer-facing websites, its tools are too expensive and inflexible. Recent years have seen the rise of more specialised digital repositories, many of them in the cloud and based on malleable “open source” software. According to Gartner, a research firm, Oracle’s share of the database market fell from nearly 44% in 2013 to 28% last year. And it has yet to shake off a reputation for antagonising clients with things like audits to verify their use of software by workers—and hefty charges for firms that exceed licence limits. Brent Thill of Jefferies, a bank, echoes other Oracle bears when he says that the company has been stuck for years even as “we are living in the data age, the biggest tech-boom ever.”
I'm not sure you can avoid open source destroying a closed source market. Oracle does have MySQL, but can revenue from a “free” piece of software replace Oracle DB losses?
Original source: Can TikTok help Oracle stay relevant in the cloud-computing age?