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September 20, 2017

Cloud wars: Oracle takes aim at AWS with “Universal Credits”

A price war is being waged at the top of the cloud leaderboard, with Oracle and AWS both introducing transformative developments to their offerings.

By Tom Ball

Oracle has marched into battle against AWS in a pricing war as it looks to make a massive flexibility increase for its customers that will slash costs and enhance performance.

The stand out program in the set of new releases pertains to a new cloud consumption model; Oracle is calling this Universal Credits. This process will contractually ensure that customers have access to all future platform-as-a-service and infrastructure-as-a-service options.

Customers will gain on-demand access to all services, in addition to gaining the benefit of reduced costs on pre-paid services. Greater freedom will also be granted to customers in the ability to switch PaaS or IaaS services without notifying Oracle.

A further new program will also allow customers to use existing software licenses for Oracle PaaS, including Analytics, Database and Middleware. This will mean significant financial benefits as customers will be able to access Oracle Database Cloud at a reduced price. Oracle boasts that running Oracle Database on Oracle IaaS beats Amazon on speed and variety of features.

Upon announcing the new programs, Executive Chairman of the Board and CTO of Oracle, Larry Ellison outlined his belief that the human element in the PaaS process can be extracted for financial benefit, enough so to halve Amazon’s cloud costs.

“The way we want to compete in PaaS is to deliver a high degree of automation to our customers… By automating a lot of those services, we reduce the amount of labour a customer would need to expend to run the DB database or run the middleware and also reduce the amount of human error associated with that labour,” said Ellison.

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Ellison said: “We are completely transforming the way all companies buy and use cloud by providing flexibility and choice… Today, we combined the lowest prices with the highest performance and more automation to deliver a lower total cost of ownership for our customers.”

Price is unsurprisingly a critical factor in cloud progress, with AWS only yesterday unveiling its own potentially game changing development that will see customers charged on a per-second basis. This more granular approach is expected to save customers money.

The daunting journey toward achieving cloud adoption is holding back many organisations from boldly making the jump, this move from Oracle reduces the strain of cloud adoption both by alleviating heavy costs, and by enhancing performance.

Oracle recently saw strong financial results for the beginning of the 2018 fiscal year, and the cloud was a driving for behind business’s robust progression.

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