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Companies that use Oracle - Why 97% of Fortune 100 Companies use it?

By Arvind Sehtia
23 July 2016

In 2013 Oracle passed IBM as the 2nd largest software vendor. Oracle is 81st on the Fortune 100, with $10.2billion in revenue, 420,000 customers worldwide, 310,000 Oracle database customers and 37,000 developers.

After nearly 40 years, Oracle continues to grow and provide a diverse suite of products across many industries.

Who wouldn't want to use Oracle?

Statistics like "97% of Fortune 100 Companies use Oracle" left me a little curious? I know, large companies use multiple platforms, but still 97%?

Let's take a look at the research I have put together for figuring out such a high rate of affinity for Oracle. 

Satisfied Customers

According to a Gartner 2016 study, companies that use Oracle are satisfied with the hardware and software products because it eases deployment and database management. Oracle customers are also pleased with, “the stability of Oracle’s engineered systems”.

As companies are adopting cloud and computing software and applications, Oracle is shifting its software and making it available to download in a subscription model. Instead of building new technology in-house, they have spent $50B to acquire 90 to 100 companies in the past 10 years.

Target Industry

Oracle has made key acquisitions to grow their suite of products and services. Here we dive deeper into the acquisitions Oracle made in the past decade to achieve 20% market share in the retail technology industry.

  • Key Retail Acquisitions
  • MICROS Systems, June 2014 for $5.3billion
  • 360Commerce, January 2006 for an undisclosed amount
  • ProfitLogic, July 2005 for $160million
  • Retek Inc., April 2005 for $630million
  • PeopleSoft, January 2005 for $10.3billion

According to a US market study in 2015 by Lee Holman and Greg Buzek:

  • Retail sales are up 2.6%
  • GDP has risen 14.8% since the 2008 downturn
  • Unemployment rate 5.3%, lowest since the 1970s

Of the companies listed in the Fortune 100 for 2015, 9 of them are retailers: Walmart (1st), Costco (18th), Amazon (29th), Home Depot (33rd), Target (36th), Google (40th), Lowe’s (50th), Best Buy (77th) and Sears Holdings (99th). Of these companies, only two (Amazon and Target) were not profitable for 2015. The largest threat to retailers is the fact that retailer systems and IT are dated when compared to retail and technology giant Amazon. Retailers are paying close attention and dedicating resources to improving their IT systems and improving customer experiences within their stores and online.

Dominant Product

Having launched Oracle Database in 1979, over a decade before Microsoft released its first version of MSSQL. Oracle is dominant in the software and database space. Here are a few of the differences between two lead players and their open source competitor MySQL.

Oracle Database vs. MSSQL vs, MySQL

Oracle

MSSQL

MySQL

Cost prohibitive, ~$40K/license

Less expensive, ~$24K/license

Open source

Considered more stable than MSSQL as there are minimal deadlocks under load

Deadlocks are a serious problem under load

Deadlocks are a serious problem under load

Oracle is multi platform and can run on multiple operating systems (OS X, Linux, Solaris, Windows,e tc.)

Runs on Microsoft operating systems

MySQL is multi platform and can run multiple operating systems (Oracle, Linux, Ubuntu, Windows, OS X, FreeBSD, HP)

Supported programing languages: 20+

Supported programing languages: 6

Supported programing languages: 8


Does your company use Oracle? On your roadmap for 2016, what are your plans for your relationship with Oracle? Will you continue to adopt and maintain their products, or look elsewhere for less cost prohibitive options?

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