Oracle Corporation (NYSE:ORCL) Has Revamped Its Legacy Database Products
Oracle Corporation (NYSE:ORCL) recently announced the launch of its 18c database product, which is a major improvement from the company’s legacy database products give that it is entirely cloud based. The new database is billed as a “self-driving” database in that once a problem is identified, the database can repair itself through its artificial intelligence systems.
Oracle has recently launched its new cloud-based database.
The new database operates using artificial intelligence, which is new to the market.
The company might have an opportunity to reclaim some of its lost market share.
The company claims that its new database is superior to all the other enterprise database systems offered by its two main competitors Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN). The company has been losing market share in the database industry to Microsoft and Amazon, but the new database system might be critical in the company’s expectation to continue dominating the database industry.
Oracle’s new database offering will operate using machine learning with the company offering it as a complete end-to-end product, which will handle all errors and failures, while at the same time optimizing, tuning and securing itself. The company will not have access to the database as it can only access the database through a “break glass” procedure with the customer’s authorization.
The above features indicate that indeed Oracle’s new database might be much superior to the current products on the market. However, given that this is the first release, it is highly likely that the products will have some issues, which are likely to be resolved much sooner given that it is a machine learning product.
On the financial side, it remains to be seen whether Oracle’s new cloud-based database products shall allow it to claw back some of the market share that it has previously lost to its competitors. Given that the database is a B2B product, it might take a while before a significant increase in its adoption is witnessed given that most businesses have high switching costs, which makes the process of switching to a new database quite tedious and expensive.
Some analysts believe that Oracle’s new database will infuse the company with renewed growth potential that could see its rally much higher despite currently trading near its 52-week highs. Other analysts and investors are of the opinion that it will take much longer for Oracle to record the massive growth that had characterized it during the dotcom boom.
However, one thing is certain, Oracle’s new database is an innovative product that might just catapult the company to new levels of success.
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