Will the SQL 2014 release help Microsoft challenge Oracle?

Market Realist

Why Microsoft has been strong since Satya Nadella became CEO (Part 4 of 5)

(Continued from Part 3)

Microsoft’s SQL Server is growing faster than the overall database market

During the 42nd Annual JPMorgan Global Technology, Media and Telecom Conference on May 20, Microsoft’s (MSFT) management mentioned that the company is growing at a rate of 15% in the database market—much faster than the overall database market growth of mid-single digits. As the image below shows, Microsoft is the third-largest player after Oracle (ORCL) and IBM (IBM), ahead of SAP (SAP) and Teradata (TDC), in this market. Microsoft is growing faster than the overall market and hence gaining market share, but is it enough to challenge Oracle’s dominance in this market, given that Oracle owns about half of the database market?

SQL Server 2014 has capabilities to take higher data loads at better performance rates

During the conference call, Microsoft’s management mentioned that the company is seeing 30x better performance for its OLTP product and up to 100x performance improvement for its data warehousing product. “We see the ability to actually take share at a much higher rate because of the enterprise workloads that we can support that previously could only be run on either IBM or Oracle’s database and UNIX environments we believe we can migrate to SQL 2014 and all but really effectively mainframe workloads we can run on SQL 2014.”

Microsoft’s management further commented, “And in here we have three important differentiators. The first one is that the in-memory capabilities are build right in SQL Servers. There is no need to buy additional hardware or software. The second is there is no need to rewrite any application, which some of all competitors push you to do. And finally, the in-memory capabilities are such that they are compatible with the prior technologies as well.”

Continue to Part 5

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