Why Is Oracle Losing Cloud Computing?
The cloud computing landscape is dominated by a few giants; Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP). While Oracle cloud computing has made significant investments to enter the race, it continues to lag behind the market leaders. But why is Oracle losing ground in the cloud computing space?
Let’s take a closer look at the challenges Oracle faces, the shifting market dynamics and what businesses should consider when choosing a cloud provider.
Late Entry into the Cloud Market
Oracle was slow to pivot from its legacy software model to the cloud. By the time Oracle launched its serious cloud offerings, AWS and Azure had already captured significant market share, built large customer bases and refined their platforms through years of iteration and innovation. Catching up in such a fast-moving industry has proven difficult.
Complex Licensing and Vendor Lock-In
One common criticism of Oracle cloud computing is its licensing complexity. Customers often cite concerns around being locked into Oracle’s ecosystem, which can drive up long-term costs and reduce flexibility. In contrast, competitors like AWS and Azure offer more modular, pay-as-you-go pricing models that appeal to businesses of all sizes.
Perception of Legacy Infrastructure
Despite launching Oracle Cloud Infrastructure (OCI) to modernise its cloud stack, many still associate Oracle with traditional, on-premises enterprise databases. This legacy perception can be hard to shake, especially when newer tech companies prefer cloud-native, open-source or containerised alternatives.
Limited Ecosystem and Developer Support
Another major drawback is Oracle’s relatively smaller developer ecosystem. AWS and GCP have fostered enormous communities, tools and integrations, making it easier for developers to build, test and deploy applications in their environments. Oracle cloud computing has struggled to gain similar traction in the open-source and startup communities.
Competition and Customer Loyalty
With fierce competition from AWS, Azure and Google, Oracle finds itself in a defensive position. These platforms offer wider global infrastructure, more services and broader adoption. As a result, many organisations don’t even consider Oracle cloud computing as a top-tier option; unless they’re already heavily invested in Oracle databases.
What This Means for Businesses
Oracle may still be a strong choice for specific enterprise workloads, particularly those already running Oracle databases, but its struggles in the broader cloud computing arena raise important considerations.
For businesses looking for scalability, developer-friendly tools and market-leading innovation, Oracle cloud computing may not be the best fit. Choosing the right cloud provider requires a balance of performance, pricing, flexibility and long-term strategy.
Ready to Choose the Right Cloud Platform?
At NetVector IT, we help businesses evaluate cloud providers and make informed decisions that support long-term growth and security. Whether you’re migrating to the cloud or optimising an existing setup, we provide expert guidance and hands-on support.
Get in touch with NetVector IT today to discuss your cloud computing strategy and explore options that deliver real results, without compromise.
