(Bloomberg)—Amazon.com Inc. and Salesforce.com Inc., two of Oracle Corp.’s biggest customers, are actively working to replace Oracle software running on crucial business systems with lower cost open-source database software, the Information reported, citing people familiar with the discussions.
The technology news site said Amazon, No. 1 in the Internet Retailer 2017 Top 500, and Salesforce have already made significant progress toward weaning themselves off Oracle all together. They have ample motivation to do so: While Oracle’s database is widely considered the world’s most advanced, it’s also expensive compared with the competition, the Information reported. Oracles shares slid in New York Tuesday.
Amazon began exploring Oracle alternatives in the early 2000s, and is further along, according to the report. It has already switched over two internal databases that underpin its massive e-commerce operation to open-source NoSQL from Oracle, the Information said, citing two people with knowledge of the change.
Salesforce, which uses Oracle’s database in its customer management and marketing automation software, has also been developing a database replacement, code-named Sayonara—Japanese for “goodbye”—and is now ready to deploy it internally, the Information reported, citing a former Salesforce employee with knowledge of the matter. Salesforce expects to be completely weaned of Oracle by 2023, the person said, according to the publication.
Oracle, Salesforce and Amazon declined to comment to the Information.
Salesforce is the e-commerce platform provider for 80 retailers in the Internet Retailer 2017 Top 1000, including Barneys New York (No. 169), Duluth Trading Co. (No. 181) and Under Armour Inc. (No. 36). Salesforce offers several cloud-based technology suites for such applications as customer relationship management, commerce, salesforce automation, customer service, marketing and analytics.
Redwood City, Calif.-based Oracle had almost $38 billion in revenue in the fiscal year ended in May. The company co-founded by Larry Ellison sells a variety of business software applications and hardware products, but its database software—used by most of the Fortune 500 companies—is its flagship product. Oracle is the e-commerce platform provider for 89 retailers in the Top 1000, including Best Buy Co. Inc. (No. 10), Godiva Chocolatier Inc. (No. 376) and Sephora USA Inc. (No. 136).
Oracle shares were down 1.4% to $46.62 at 11:24 a.m. in New York. They are up 21% in the past 12 months.Favorite