Oracle vs. Amazon
BUZ INVESTORS Oracle vs. Amazon Cloud computing is one of those emergent industries that gets a ton of play in the press, and for good reason. The ability to greatly magnify your computing power by using the increased connectivity that our modern Internet provides is a surefire way to get the most out of your business.
As more companies begin to realize that the future is in the cloud, others have begun to develop the platforms, software, and infrastructure that powers cloud computing. And this leads us to the cloud computing leaders: Amazon.com, Inc. (NASDAQ:AMZN) and Oracle Corporation (NYSE:ORCL). Or, more importantly for investors, Oracle vs. Amazon stock.
Even though these two companies have become cloud computing leaders in their own right, they are not comfortable sharing that mantle with each other.
Oracle vs. Amazon
Cloud Computing Leaders
It’s important to understand the cloud computing industry and where Oracle and Amazon stand before you go and start buying up shares.
First, the industry as a whole is growing rapidly. Parsed out into three distinct offerings—Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS)—this is one of those sectors that sees strong growth in the coming years, which is great for both companies, no matter where you fall in the Oracle vs. Amazon divide.
AWS vs. Oracle IaaS
The two companies have not been shy in making their rivalry in the IaaS space very public. Oracle Executive Chair Larry Ellison fired shots at Amazon, claiming that Oracle’s overhauled cloud service is better and cheaper compared to AWS, during a conference call with analysts.
AWS CEO Andy Jassy did not take the comments lying down. Jassy called the database market (Oracle generates the bulk of its sales through the vending of databases) a “lonely place for customers.” He went on to say that businesses “have been locked into companies that aren’t so customer friendly.”
With the addition of 2,225 cloud databases, application development, business intelligence, integration, and other PaaS customers in Q2, revenues jumped approximately 600%, according to Oracle co-CEO Mark Hurd.
While the newest addition to its cloud business, IaaS, grew six percent to $175.0 million, the company plans for much bigger gains in the future.
You see, the difference between Oracle cloud and Amazon cloud is mainly one of technology, at least according to Oracle.
Oracle vs. Amazon Stock: Where to Invest?
The final, all-important question for investors is where to put your money.
Well, here’s the thing: Oracle is poised for huge growth in the cloud computing sector. The company might even be able to catch up to Amazon Web Services, although that is by no means a given.
But here’s what is a given: AWS is the dominant cloud computing service, continues to grow, and is connected to one of the greatest tech companies of all-time.
While Oracle is no slouch, Amazon has so many things going for it besides AWS growth, it would be hard to recommend Oracle stock over Amazon stock.