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Amazon’s consumer business has turned off its Oracle data warehouse

180 points| petethomas | 7 years ago |bloomberg.com

94 comments

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[+] twblalock|7 years ago|reply
When non-traditional databases became popular, I thought it was primarily driven by people short-sightedly prioritizing development time over all of the good relational database features.

Now I see things differently -- the non-traditional databases are just better at scaling horizontally, eventual consistency, and running in cloud environments than the traditional databases. They are easier to set up and use. Some of them now have pretty good relational features and schemas.

During the past decade the Oracles of the world have continued to think dismissively of new non-traditional databases, as I did at first. The non-traditional databases got better and better while Oracle kept doing a lot of the same stuff. Oracle just didn't take the competition seriously, and that's fair enough because the competition didn't deserve to be taken seriously at first -- but now it does, and it's becoming a threat to Oracle's business.

It's obvious that Amazon would want to use their own database products -- but the impressive thing is that those products, which are not very old, are already good enough to replace Oracle for a lot of use cases at very high scale.

[+] hyperpallium|7 years ago|reply
"[N]on-traditional databases" with far better performance actually pre-date relational databases.

Relational databases solved the problem they had, of requiring much developer effort to evolve for new application needs, and re-organization of the datastore for changing performance needs. Basically, everything is a table, and you can combine/separate tables, from whatever form it currently is, to whatever form you currently need. This is also helpful for reporting (as opposed to operational applications).

But relational databases, like dynamic languages, pay a performance price for their flexibility.

Of course, every other innovation has since been added, and there's Oracle's licensing too. So it's much more complex than the base technology of relational algebra.

[+] Derek_MK|7 years ago|reply
There are places where relational DBs are inherently better than noSQL (namely when you need fully up-to-date information on every query, no matter what) - But those situations are becoming more rare compared to situations where potentially stale data is an okay tradeoff for performance gains.

Honestly, IMO the biggest issue holding noSQL databases back is lack of good documentation/support a lot of the time. Technically, though, they're going to become the standard for most use cases soon.

[+] unscaled|7 years ago|reply
Of the three DB products mentioned in the tweet, only one is a non-traditional database: DynamoDB. Both Redshift and Aurora are traditional RDBMs, which are forked from very old codebases. Redshift is a fork of Postgres 8.0 that was adapted for OLAP use-cases, while Aurora is a fork of MySQL (or PostgreSQL in the PostgreSQL-compatible versions) that runs on a custom storage engine.

The main reason technically-capable companies like Amazon or Netflix are moving away Oracle has nothing to do with horizontal scaling. It's the licensing costs. Oracle is just too expensive for them, and even if you are not Amazon yourself, RDS (or any other Cloud RDBMS) would be much cheaper for you.

[+] jacques_chester|7 years ago|reply
This isn't really about relational vs non-relational. Redshift is still a relational database of the MPP genre.
[+] gaius|7 years ago|reply
The non-traditional databases got better and better while Oracle kept doing a lot of the same stuff

I'm not sure this is true, you can look at the new features in 8i, 9i, 10g, 11g, 12c and see that Oracle is adding a lot of features, and some of them are very impressive. The problem is most people don't need most of them and if you want any of them you have to pay for all of them.

And the "non-traditional" databases had a pretty low bar. MongoDB just had to stay up for more than 5 minutes and not lose your data. Do they even do that yet?

[+] grumpydba|7 years ago|reply
Most of those oracle databases are moving off to Aurora, which is pretty much traditional.
[+] emmelaich|7 years ago|reply
My hot take is that K/V stores solved a problem they didn't know they had.

To whit, de-normalised tables for the sake of "efficiency".

It's pretty difficult to under normalise a two column table -- which is what K/V is.

[+] dgemm|7 years ago|reply
That is a hallmark of a disruptive technology, to not be as good at what the incumbent values but better in some other dimension that they don't.
[+] cronix|7 years ago|reply
> The non-traditional databases got better and better while Oracle kept doing a lot of the same stuff. Oracle just didn't take the competition seriously, and that's fair enough because the competition didn't deserve to be taken seriously at first -- but now it does, and it's becoming a threat to Oracle's business.

Yes, like traditional car companies not taking EV's too seriously, or Intel not taking mobile/ARM too seriously, etc. It seems the older and more established a company is, the thicker their forward-thinking blinders are. "We're king, no one can EVER touch us."

[+] AareyBaba|7 years ago|reply
Can you mention the popular non-traditional databases that are competitive with a traditional relational database ?
[+] jchanimal|7 years ago|reply
Shameless plug, but I think the new math that underlies global consistency is super interesting, I did a webcast with Professor Daniel Abadi about how Google Spanner differs from FaunaDB (my employer, which doesn’t require atomic clocks), you can get a link to the recording here https://www2.fauna.com/wcspannercalvin
[+] dstroot|7 years ago|reply
The only thing that this "article written about a tweet" made me think was why has it taken Amazon so long?

Oracle sued my company a few years back for license compliance issues - I vowed never to run their stuff again and rip it out wherever I find it.

[+] Dunedan|7 years ago|reply
> why has it taken Amazon so long?

I imagine at the scale of Amazon replacing some of the core data stores with all their existing data is a quite complex task. Just think about the amount of data you need to migrate and keep in sync during the migration and all the third party tools using such data. So while it takes long, I don't think Amazon is particularly slow doing it.

[+] danso|7 years ago|reply
What’s wrong with an “article written about a tweet”, when the tweet is from someone — the CEO of AWS — with the highest authority on the matter?
[+] adrr|7 years ago|reply
I bet Amazon uses Oracle back-office software like PeopleSoft , some Oracle ERP and/or BI Tools(Hyperion). Oracle has a stronghold on these type of systems and they only play nice with other Oracle products.
[+] mathattack|7 years ago|reply
Similar experience with IBM and RedHat. (And go figure - they merged!)
[+] czardoz|7 years ago|reply
I have no clue why Larry Ellison thinks it's a good idea to take potshots at one of his own large customers, instead of talking about the benefits of Oracle's products. Very weird, and kind of childish.
[+] snuxoll|7 years ago|reply
Because Oracle doesn't give a crap, they know they have a captive market and are the definition of a rent-seeking company. They don't sell their products based on their merits, they do it because companies have either have no choice or are already held hostage by them.
[+] devwastaken|7 years ago|reply
Because people can have opinions and don't have to shill out to the highest bidder. Amazon is in a position where they don't have to rely on Oracle, and that's a good thing for them. It's also a good thing for everyone else.
[+] thisisit|7 years ago|reply
This is not surprising at all. For the past couple of years, Oracle's behavior has been egregious at best.

You can pick up any of their product and find that MYSQL, MS-SQL etc are supported but 2001/03 release because of "incompatibility issues". If that is not enough Oracle's support is clueless about what are these "incompatibility issues". And given the precarious security environment we are in, everyone needs a DB which has been patched sufficiently and allows newer features like TLS 3.0 etc, you are left with no choice but to go for the only supported DB is Oracle DB. I have sat in many meetings where the CIO/CTO have seen this as an arm twisting tactic by Oracle.

I am no market expert but if Oracle keeps going down this path they will cease to exist in next 10-15 years.

[+] narrator|7 years ago|reply
They just keep buying niche enterprise applications that have entrenched non-technical users and then raise prices, drop interoperability with non Oracle and start milking.
[+] Nerada|7 years ago|reply
I'm not heavily involved with databases from a development point of view, is someone able to explain why Oracle is as successful as it is? What sets them apart from what seems like a plethora of other DB systems?
[+] jacques_chester|7 years ago|reply
Putting aside business practices, Oracle database has features that don't show up in opensource systems, often for years.

The one I miss most is resource constraints on queries. It's nice to be able to guarantee that some queries will get more resources than others.

On the other hand, Oracle's SQL dialect is (or was, I stopped using it about 5 years ago) full of frustrating backwardness. No boolean type, so you get a mix of CHAR(1)s or INTs, depending on the prevailing DBA's opinion. And there's no serial or autoincrementing type, so for every table you wind up copying and pasting the same code over and over (create index, create sequence, insert trigger, update trigger).

The most head-scratching part is that you can find apologists for these flaws.

[+] blihp|7 years ago|reply
They are viewed as a 'safe' choice for enterprise customers in that they've been around forever, run on pretty much everything, and have product offerings that can tick off pretty much every vendor selection checkbox. They're essentially the IBM of databases (if you're not already tied to DB/2 as a 'big blue' shop or SQL Server as a Microsoft shop)
[+] zjaffee|7 years ago|reply
They have been around virtually forever, they had a very aggressive sales organization, and their database does generally perform better than the competition for most standard SQL workloads.
[+] org3432|7 years ago|reply
Best explanation I've heard is Oracle makes simple problems complex, but hard problems possible.
[+] mathattack|7 years ago|reply
They were first to get big, and became a standard. Hard to kick out an entrenched standard.
[+] saosebastiao|7 years ago|reply
That brings back an old memory of the data warehouse being extremely overburdened during peak. Capacity constraints and over utilization kept bringing down clusters. As a last ditch effort, the data warehouse team started randomly disabling queries en masse, under the assumption that if they were actually mission critical, the user would just re-enable them again.

I knew some engineers that worked on a centralized data engineering team that served 100+ software teams, and they managed several thousand scheduled queries. I felt so bad for the guy that had pager duty that first night. He said he got a sev-2 every 12 minutes on average for 24 hours straight.

I certainly hope Amazon has fixed their data warehouse issues since then.

[+] sixdimensional|7 years ago|reply
This is as much or more about moving away from a specific product stack - Oracle E-Business Suite (EBS), which is an aging and expensive ERP titan. The news and people who aren't dealing with Oracle don't necessarily see that clearly.

I'd bet that their Oracle Data Warehouse being referred to here isn't just about the Oracle RDBMS database technology itself, they are talking about a specific COTS Oracle Data Warehouse model that you can buy prebuilt and works as a destination for all other Oracle ERP etc. subsytems.

I say this knowing it first hand coming from a company trapped in that particular Oracle stack. It's expensive, limiting and very locked in, and has a huge footprint and requires specialists to run (as do many ERPs).

I see actually a mad scramble by the big tech vendors (Microsoft, SAP and others) trying to push their ERP solutions as cloud enablement has opened up a window of opportunity to shift and escape some of the pains of the old ways (while creating an entirely new set of problems).

I'd be more interested if Amazon sees this same opening and is trying to enter the ERP game itself by building something in house that they turn around and offer as a service via AWS. They certainly have the scale to look pull off such a thing, and they already own all the enabling technologies to build an ERP system, data warehouse and rest of the stack.

That's my pet theory at least!

[+] paul94133|7 years ago|reply
Wanted to share some insights on the data warehouse industry here from a co-founder of intermix.io.

According to db-engines.com, Oracle has declined 9% since July 2016. Amazon Redshift and Google BigQuery have grown over 50% in the same period, while Snowflake and PrestoDB (although each are 10x smaller than Redshift and BigQuery) have grown over 60%.

This is happening because enterprises are shifting to the cloud. When they go to the cloud they are shifting -away- from on-prem warehouses like Oracle, Teradata, and Vertica. Enterprises choose Amazon or Google depending on which cloud platform they adopt.

Companies launched after 2010 were born in the cloud (and thus never used Oracle since Oracle does not have a cloud) and are more likely to choose Snowflake due to ease-of-use (even as Snowflake is more expensive than Redshift).

What does this mean?

Consider that we are still in the early phases of cloud adoption. 32% of enterprises are in the cloud, rising to 52% by 2022. At the same time, over half of enterprises said they will use more than one cloud (hybrid cloud) within the next 10 years.

Amazon Redshift is the warehouse of choice for Enterprises on AWS. Snowflake is eating up the mid and SMB markets. prestoDB solves awesome problems for interactive and exploratory analysis for all. BigQuery is used by GCP customers.

These trends indicate that Oracle will struggle to grow revenues and margins, as they are relegated to serve the (still large but shrinking) portion of the market that chooses on-prem, and pursue aggressive rent-seeking of an aging install base (the Java mess is an unrelated but telling example of this strategy).

To reverse this trend, Oracle must find a way to serve cloud customers. That probably means acquisitions.

[+] sys_64738|7 years ago|reply
"Nobody ever got fired for buying Oracle."
[+] nojvek|7 years ago|reply
The story goes that Amazon was one of Oracle’s biggest customer, and they have been for a long time.

When Oracle entered the cloud they started making fun of Amazon, “If their cloud and database offerings are so great, how come they use us to do the actual heavy lifting? That’s because our stuff is rock solid and theirs isn’t”

This pissed off Bezos, the sky broke and a voice foretold, NO MORE ORACLE!

[+] stanislavb|7 years ago|reply
That's been an expensive lesson to Larry Ellison not to be so arrogant.
[+] ec109685|7 years ago|reply
If Larry had been nice, you think Amazon would have merrily kept paying Oracle license fees over moving to their own software?
[+] toyg|7 years ago|reply
Do you really think Larry has never had a similar thing happening, in the 40 years he’s been in business?
[+] erik_landerholm|7 years ago|reply
This isn’t about nosql vs sql, this is about how oracle is lead by an out of touch, megalomaniac selling a subpar product, that you can literally get for free. I hope this gives other companies the kick they need to dump Oracle and MSSQL too.
[+] 1024core|7 years ago|reply
Just in time for Black Friday.... yay! What could go wrong?
[+] chris_wot|7 years ago|reply
So does this finally signal that Oracle is becoming way less powerful and relevant than they were before?

How many folks still actually use Oracle? And how many are trying to get rid of them?

[+] r00fus|7 years ago|reply
Many Oracle installs used to rely on the apps that ran on them like ERPs and the like. Oracle bought many of those companies (e.g. Peoplesoft)

With cloud availability and many of the features of high end DBs commoditized, and the new strain of apps being cloud / SaaS, Oracle's available market has dried up.

[+] toyg|7 years ago|reply
Oracle has been threatened for a while, hence their desperate run to the cloud. Like IBM, though, they have enough fat to survive a very, very long winter; and, as cornered animals go, they are among the most vicious.

Personally, I don’t expect to see Oracle die in my lifetime. They will keep cannibalizing other companies to stay alive, probably forever.

[+] Axsuul|7 years ago|reply
I think Amazon is just in a unique position to dog food their own technologies.
[+] oh-kumudo|7 years ago|reply
I don't think Oracle is getting too many new customers. Their product is simply too expensive.