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Database as a Service revenue forecast according to 451Research

Database as a Service revenue forecast according to 451Research

Pushing forward into the database as a service space Verizon Terremark and Oracle have entered into an agreement that will see the former offer the latter’s database on its global cloud platform.

As part of the agreement the telco-turned-cloud provider will offer Oracle’s database as a service, and allow customers to take an on-premise licenses for Oracle’s 11G database and the company’s newest addition, 12C, which it’s pitching as a high performance database built specifically for the cloud.

The partnership will also see Verizon Terremark offer Oracle’s Fusion middleware, which would theoretically open up the recently revamped Verizon cloud platform to a slew of Oracle and Java-based applications and services.

“With Oracle, we’re helping enterprises transform their operations with the cloud,” said John Stratton, president, Verizon Enterprise Solutions. “Few companies begin with a complete cloud environment, and the benefits of migrating to the cloud have at times been outweighed by the challenges and costs associated with making a change. Oracle and Verizon have now removed those obstacles. Companies can use their existing Oracle licenses or pay as they go for Oracle’s software and gain the power of Verizon’s next-generation enterprise cloud.”

The companies have not announced pricing but said this is forthcoming. As an example of what customers could expect, and Oracle instance on Amazon RDS (Relational Database Service) ranges from $0.05 to $1.32 when deployed from the EU datacentre in Ireland.

Given Verizon’s pricing on other public and virtual private cloud resources, it will likely look to be competitive with the popular cloud rival.

The database as a service market is expected to pick up traction in 2014, but IT companies like Oracle which has a history of favouring on premise deployments are increasingly recognising the need to get in front of the trend or risk the rise of newer, more agile players.

A 451Research survey including responses from over 275 senior database administrators conducted in August last year suggests over a third expect to use database as a service offerings this year. The firm expects revenue to grow 81 per cent between 2013 and 2016 to reach $1.8bn. And while overall adoption is expected to rise, newer players in the space are eating into the incumbent market share.

In 2012, SAP was the fastest growing database company according to the research and analysis firm. By 2013, it was MongoDB, a provider of NoSQL database technologies founded in 2007. Indeed, 451 estimates that by 2018 revenues will tip in favour of providers of NoSQL technologies, though it remains to be seen whether enterprises will deviate from suppliers like Amazon and Google for their database as a service needs.

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