Oracle President Larry Ellison
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CNBC, the parent of Alphabet, intends to stop using Oracle financial software in the coming weeks and instead start using software from SAP, CNBC said.
Alphabet and Google’s core financial systems will move to SAP in May, he told Google employees in an email CNBC saw. The move refers only to the software used by Google to track finances, and there is no indication that the company is moving other systems from Oracle.
The change comes as Google and Oracle compete more and more in the cloud computing market and follow a similar move by cloud leader Amazon, which over the years has significantly reduced its use of Oracle software in favor of its own cloud services.
The switch does not appear to be related to the lengthy process between Google and Oracle regarding Google’s use of Java code in the application programming interface for the Google Android operating system. Earlier on Monday, the Supreme Court ruled that Google’s copying of Java code was a correct use.
Oracle competes with Google in selling public resources to cloud organizations for hosting applications. For years, Oracle refused to certify its database software for the Google cloud, which means customers weren’t sure if it could host Oracle databases on the Google cloud without being subject to Oracle policies. licensing.
“We are not collaborating with Google because we are trying to compete with Google,” Ellison said in a 2018 meeting with analysts.
This lack of certification has become a problem for the cloud company Google, as it has sought to gain business from large companies, many of which use Oracle database software. As a result, Google has begun to focus more on implementing SAP database software in the cloud, said a person familiar with Google’s cloud business, who asked not to be named while discussing confidential business issues. In addition, this year Google introduced a way to run the Oracle database on a bare-metal server that does not include virtualization technology.
“Google Cloud actively allows Oracle customers to run their Oracle database workloads on Google Cloud through our Bare Metal solution. But this is completely separate from our decision as a financial software enterprise customer to move our systems financial from Oracle to SAP, “a Google spokesman told CNBC in an email. An Oracle representative declined to comment.
Larry Ellison, co-founder, president and chief technology officer of Oracle, regularly shows how companies agree to use Oracle software and services. In March, Ellison spent a third of Oracle’s 45-minute winning calls talking about customer activity and said Oracle would take over more than half of SAP customers.
It’s not clear how much money Google Oracle paid for the financial software. However, Ellison boasted about his business with Google. During a 2019 meeting with analysts, he said that when Google catalogs large amounts of information, that data “is actually in Oracle databases.” This may still be the case, as this move only applies to Oracle financial software.
The effort to migrate from Oracle’s financial software required months of work and extensive engineering resources, said another person familiar with the move.
Oracle shares fell slightly on the news, while SAP shares rose 4.8%.
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