Microsoft Corporation (MSFT) bringing its SQL servers to Linux machines will cost Oracle Corporation (ORCL) some of its market share in Database Servers
Microsoft Corporation (NASDAQ:MSFT) is looking to expand its footprint in the Database Server market, using its SQL servers to challenge Oracle Corporation (NYSE:ORCL) on the Linux OS. Microsoft’s cloud first strategy sees the potential for the company to experience growth in the database environment. By shipping SQL onto Linux, Microsoft is tapping a new operating system with a proven product.
Microsoft is tired of taking backseat to database segment titan Oracle, which has twice the market share of Microsoft. Microsoft does not seem to have found a way to make headway in the database server wars using its own Windows OS and is instead choosing to expand to Linux in a bid to woo customers that it had not catered to before. The Linux operating system, due to its open source nature, is used by individuals and companies with more complicated needs that require more than the run of mill systems.
With that in mind, Microsoft, which has never targeted the high end computing market, is now trying to diversify its software to reach more platforms including Apple and Google’s operating systems. Microsoft is also using pricing to beat out its competition and has adopted a low cost strategy to make its servers a more attractive proposition for companies with respect to its main competitor, Oracle.
It’s easy to understand why Microsoft is going through all this trouble, considering that SQL servers have been the dinosaur chunk of its cloud and enterprise revenue bringing in $2 billion in the past 3 years. With analysts projecting a continuing annual growth of the database server market by 6.6% annually all the way to 2019; it will be worth $41 billion in the next 4 years. For Microsoft, this is an opportunity that they cannot miss with their business strategy streamlined to cloud.