Oracle's Entrance: Database Giant Unveils Enterprise Blockchain Strategy
Oracle has become the latest tech major to launch a cloud-based blockchain services platform. But is it cannibalizing its core business with the move?
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/LWYCTLWFW5GAHLFHSNXGQFLIZQ.jpg)
(Shutterstock)
Database software giant Oracle is officially a player in the world of blockchain.
The firm unveiled its enterprise-grade blockchain cloud platform Monday at its OpenWorld 2017 conference in San Francisco. With the initial debut – a public launch is expected sometime next year – Oracle becomes the latest entrant in the "blockchain-as-a-service" ecosystem, joining the likes of IBM and Microsoft, two other tech majors that are courting enterprise customers with their respective cloud-based distributed ledger resources.
Oracle, according to its announcement and statements from execs, is looking at the technology as a way to extend (and streamline) its existing cloud-based offerings, which are largely aimed at the digitization of a range of business functions.
The company wants to attract both large and small firms, but Frank Xiong, Oracle's group vice president of Blockchain Cloud Service, argued that startups looking to test a smart contract or an application will be able to do so more cheaply using the cloud platform because pricing is based on transaction volume.
"This will give them a very good reasonably priced way to start up their application," he told CoinDesk. "I personally think this will be a big attraction to these startups."
For existing ERP customers, the platform will provide a way to connect with outside partners and customers, plugging them into internal channels and processes in a confidential and secure manner.
As Xiong explained:
Though the exact date isn't clear, Xiong said that the service will be made publicly available some time in 2018.
Dismissing concerns
As one of the largest and most reputable database providers in the world, there is a perception that Oracle might be potentially cannibalizing its core business segment by embracing blockchain, a technology that, by its nature, enables the distribution of information without having to trust a central administrator.
However, Xiong was quick to dismiss those concerns, along with the notion that blockchains and databases should be viewed as competing entities.
"We actually think that this is an advantage to us," he said, arguing that the idea that blockchains are "distributed databases" is not entirely accurate.
Because copies of data in a blockchain network need to be kept by all of the various peers and nodes, he explained, increased adoption of blockchain among Oracle's core client base will actually create new demand for the company's traditional data storage solutions.
He continued:
Ethernet cables image via Shutterstock
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.