Amazon & Salesforce Moving Away From Oracle
Amazon.com Inc. and Salesforce.com Inc., two of Oracle Corp.’s biggest customers, are actively working to replace Oracle software running on crucial business systems with lower cost open-source database software.
The two companies have long searched for alternatives to Oracle's technology — and now, the pair has made "significant progress" toward that goal.
They have ample motivation to do so: While Oracle’s database is widely considered the world’s most advanced, it’s also expensive compared with the competition.
Salesforce is developing its own alternative to Oracle's database, while Amazon is moving toward open-source technology called NoSQL, sources told The Information. If Amazon and Salesforce could move away from Oracle, it could be proof that other big businesses could, too.
Salesforce, which uses Oracle’s database in its customer management and marketing automation software, has also been developing a database replacement, code-named Sayonara -- Japanese for “goodbye” -- and is now ready to deploy it internally. Salesforce expects to be completely weaned from Oracle by 2023.
Oracle's database technology, as well as the coding language Java, has been the market standard in many industries since at least the 1990s, as one of the first databases to support "http" technologies online.
Oracle, Salesforce and Amazon declined to comment on the Information.
Redwood City, California-based Oracle had almost $38 billion in revenue in the fiscal year ended in May. The company co-founded by Larry Ellison sells a variety of business software applications and hardware products, but its database software -- used by most of the Fortune 500 companies -- is its flagship product.
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