Math Shows Amazon AWS Aurora Could Shrink Oracle Business By 6%

Global Equities Research’s Trip Chowdhry said that investors were mainly concerned about 90 percent of the world data being created in the last couple of years, while less than 1 percent finding its way into the Oracle Corporation ORCL Database.

Oracle Database versus the Amazon.com, Inc. AMZN AWS Aurora was “the fight between "Scale-¬Up" Apps Vs. "Scale¬-Out" Apps,” Chowdhry commented. Although Oracle has been dominating the Scale¬-Up apps category, this is the past, and now has zero growth.

AWS Aurora, on the other hand, is very strong in the Scale¬-Out apps category, which is the future, and “is experiencing hyper growth,” the analyst said, while adding that Oracle was not even a player.

Terming AWS Aurora as a “serious threat to Oracle,” Chowdhry explained that this was not because of direct competition, but because Aurora was making Oracle’s products obsolete “in this new world of Scale-¬Out Apps.” He added that enterprises were changing their IT Scale-¬Up architectures to capitalize on Scale¬-Out architectures, which was shrinking the Oracle Database market.

“Oracle generates about 35% of its revenues from its Databases; 6% of Oracle deployed instances don't use PL/SQL, and is primed for migrating into Aurora AWS,” Chowdhry mentioned.