Nine database companies take on Oracle, Microsoft and IBM

  • For decades, three tech giants have dominated the database market: Oracle, IBM and Microsoft.
  • But with the rise of the cloud, these companies are losing their grip on the market, according to analysts at Insider.
  • Insider has compiled a list of nine companies that are taking on the titans of the database, changing guard.

For decades, the database market has been dominated by three tech giants: Oracle, IBM and Microsoft.

But the rise of cloud computing has brought about a changing of the guard. From 2018 to 2020, Oracle lost 7.1% of its market share and IBM 2.5%, estimates market research firm IDC. Increasingly, customers don’t want to be locked into the software of a single company and instead look to the cloud and use open source software.

“This means that old restrictive and locked-in trade deals with companies like Oracle are necessarily being dropped,” said Ed Boyajian, CEO of EnterpriseDB.

The database management software market will grow 13.9% over 5 years, from $ 54.6 billion in 2020 to $ 104.5 billion in 2025, estimates IDC.

“The predecessor owners of this space like Oracle and Teradata have given way to Cloudera which has given way to Snowflake and Databricks. The next evolution of IP in the data market is the move to real-time data and streaming, ”Jerry, Greylock partner and early stage investor in enterprise technology. Chen wrote in a recent blog post.

MongoDB has become a major player in databases, according to a recent report by financial firm William Blair. MongoDB generated $ 198.7 million in revenue in the last quarter, and its stock hit record highs in September.

Smaller companies are also emerging to take the old guard. Investors have invested $ 26 billion in the database market since 2019, according to PitchBook.

Several factors have accelerated the growth of the database market. Today, more and more businesses are migrating their applications to the cloud, updating their applications, and embracing AI and analytics.

Additionally, the coronavirus pandemic has sped up cloud database services. For example, MongoDB’s cloud database service Atlas generated 56% of the company’s total revenue in the last quarter, up 83% from the same period a year earlier. .

It may take time to topple the giants. Microsoft, Oracle, AWS, IBM and SAP were the top five database vendors in 2020, holding more than 80% of the market, according to IDC. And Microsoft and Oracle together still control over 57% of the market. But the database market is still in its infancy and companies are still experimenting with the best ways to manage data.

Already, several database companies, both public and private, already exceed $ 100 million in annual recurring revenue, according to William Blair’s report.

Here are nine companies taking on the database giants:


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Steven L. Nielsen

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