MongoDB?s Success Does Not Bode Well for Oracle?s Investors

Posted by Sujain Thomas on June 17th, 2017

Oracle is the benchmark when it comes to building databases that satisfy customers completely. It is difficult to top them, but what is even more challenging is satisfying investors who finance industry leaders like Oracle. At least, that is how it seems when you take a look at how Palo Alto-based MongoDB has managed to buy shares from the DB giant Oracle.

 What is it about?

 For the unaware, MongoDB was founded in 2007. Under Max Schireson, once CEO of MongoDB, who left the position in 2013, the company had raised 0 million. It primarily dealt with various types of venture capital firms at that time, including Sequoia and Fidelity. It is noteworthy that these venture capital firms were looking for quick scores, preferably via widely successful IPO.

 Up until that time, MongoDB was doing incredibly well for itself. It had been growing at a steady pace and was offering cutting-edge databases to companies, which did even better than Oracle's MySQL. Moreover, MongoDB was offering this superior database at a much lesser cost if one took the upfront and operating expenditures into account.

Schireson stated that MongoDB was a flexible platform that enabled developers to handle various types of unstructured data (like social media posts, videos, and emails) while running on commodity servers.

 When the full cost of the company was considered, MongoDB, undeniably offered a bargain that one simply could not refuse. However, the company did not provide its revenue growth details, even though it was clear as day that the demand for its product was skyrocketing.

 What do the experts think?

 As per experts at RemoteDBA.com, MongoDB has lost a bit of ground since 2016. DB-Engines reported that in April 2016, MongoDB came in fourth after Oracle, MySQL and Microsoft SQL Server. This decline has apparently continued for as of May 2017, MongoDB has fallen to the fifth place with PostgreSQL now occupying the fourth place.

 However, MongoDB is now stronger than it was in 2013. Reportedly, some customers have made the switch from MySQL and are quite happy with their decision. Satisfied clients say that MongoDB has met most of their requirements. It enabled them to host their database with much lesser infrastructure. Smaller infrastructure means reduced cost. 

 MongoDB’s database is not just flexible, but its features are also flexible. It evolves with customers' requirements and also comes at competitive pricing. Even though Oracle still has satisfied customers (Uber is still based on MySQL), MongoDB’s success does not bode well for Oracle’s investors. As per Morningstar, Oracle has seen just 9% rise in its stock since 2014. Its revenues have also deteriorated at -0.1% rate, profits have also dropped at 6.6% average rate. Hence, it comes as no surprise that MongoDB has now ended up taking shares from Oracle in this billion market.

 

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Sujain Thomas

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Sujain Thomas
Joined: June 17th, 2017
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