Thursday, October 29, 2015

Oracle Will Not Build a Giant Cloud System Like A.W.S

Oracle Will Not Build a Giant Cloud System Like A.W.S.

Contrary to what many industry watchers believed, the world’s largest business software manufacturer, Oracle, announced that it is not planning to compete against its rivals with a global cloud computing system. While they have built a large network of data centers, Oracle said that they plan to continue increasing their sales and improving their products. While their current cloud system is doing well, they also acknowledged that it is “prohibitively expensive” for them to directly compete with their rivals using a larger cloud system.

This article talks about Oracle’s announcement that they will not compete with rival cloud systems from Amazon or A.W.S. They point to efforts made to increase their salesforce, as well as a desire to follow the higher profit margin described in their current model of business, as prominent factors in the decision. Another possible reason is the high cost required to enter the same market as Amazon or A.W.S. with a larger cloud system, including the construction and growth related to building and maintaining the newer, larger cloud system. While they discussed why they are not pursuing a larger cloud system and the related market, Oracle did announce that they have streamlined their update services, and have brought about new ways to customize and utilize their products.

While this article talks about Oracle’s decision to not pursue a larger cloud system, and mentions their growth, it does not explicitly describe what the current market or cloud systems are like in any great detail. Another thing that I feel the article overlooked is the particular ways in which companies like Oracle, A.W.S., SAP, and Amazon differ in their cloud systems. Finally, I feel that the article could have been clearer overall, as not everyone will be able to understand it in its entirety.

Hardy, Quentin. "Oracle Will Not Build a Giant Cloud System Like A.W.S." The New York Times. The New York Times, 27 Oct. 2015. Web. 30 Oct. 2015.


  1. I think Oracle is smart in making the decision to not compete in a larger cloud system. Although competition is a huge part of business, it is more financially reasonable for them. It seems to me that they still have a solid plan to update their products and will still be successful. I agree that it would be useful to know how each cloud system differs for each company because then we could compare and understand the companies that we are unfamiliar with.

  2. Personally, I do not think that this is a good idea for Oracle. While I understand that this would be an expensive endeavor for them, I think they should reconsider their decision. Global cloud competing seems to be the next step in their business so to keep current costumers and attract new customers, I feel they should put some thought into incorporating some of the features that Amazon or A.W.S. has. Also, Amazon is such a widely popular brand that has insane customer loyalty. If Oracle did not do something to match their features, I feel that customers would abandon Oracle's cloud system. Therefore, for I feel the only way for Oracle to even somewhat keep up with Amazon or A.W.S. they must do more than improve their products and instead innovate and create something new.


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