During the company’s most recent earnings call, Oracle CTO Larry Ellison boasted about AWS, Salesforce, and SAP using Oracle software. Now at least two of the three companies — AWS and Salesforce — are working on dumping Oracle and developing their own databases, according to The Information.
“Let me tell you who’s not moving off of Oracle,” Ellison said on Oracle’s second quarter fiscal 2018 earnings call. “A company you’ve heard of just gave us another $50 million this quarter to buy Oracle database and other Oracle technology. That company is Amazon.”
Ellison also said Salesforce “runs entirely on Oracle.”
Amazon, however, has switched two internal databases that run its e-commerce business from Oracle to NoSQL, a type of open source database software, according to The Information, citing “two people with knowledge of the change.”
Meanwhile, Salesforce plans to be completely off Oracle by 2023, according to the report, which cites a former Salesforce employee. The company has been developing its own database to replace Oracle — code-named Sayonara, Japanese for “goodbye” — and is ready to deploy it internally.
Oracle declined to comment, and AWS did not respond to requests for comment. A Salesforce spokesperson said the company doesn’t comment on rumors but added: “Salesforce is focused on delivering the most trusted, reliable and resilient infrastructure available and we do that with a multi-vendor approach.”
Will this translate to a more subdued Ellison, who loves to taunt AWS at every possible opportunity? Probably not.
Another company that stands to lose if AWS develops its own software is Red Hat.
AWS’s Jeff Barr writes about the company’s new version of its Linux operating system for enterprises, Amazon Linux 2, in a December blog post. This move could set the cloud giant up to directly compete with Linux and open-source software distributor Red Hat in the enterprise space.
But while this is “hardly a good thing” for Red Hat, according to Deutsche Bank’s Karl Keirstead, investors shouldn’t “over-react.” The AWS software is still pre-beta and the “full roll-out will take time,” Barron’s reports.