Is There A New Leader In The Database Market?
Oracle has long been the Database market leader, but Amazon, Microsoft, and Google are catching up fast. Our data suggests that database spending on Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) will eclipse Oracle within the next three-to-five years.
That is one of the key findings of the latest installment of our Beacon by 7Park Cloud Infrastructure report, which focuses on the Public Cloud database market.
We estimate the Public Cloud database market to be $8.4 billion in 2020, up from $2.3B in 2017. That translates to a greater than 50% CAGR over the last three years. As a result, AWS, Azure, and GCP Databases have collectively grown to greater than 50% of the size of Oracle’s database business in 2020, which is up from 30% in 2018.
Assuming Oracle’s database revenue continues to grow in the mid-single digits (both on-premise and cloud), our data indicates that spending on Public Cloud databases will eclipse Oracle database revenue by 2025.
This assumes a 20% annual growth rate, which would be a deceleration from what we’ve seen over the past three years. If Public Cloud database spending growth re-accelerates to 30%, it will surpass ORCL by 2023.
Spending on SQL databases has been the key driver of the market’s rapid growth, accounting for more than 60% of total database spending. However, newer NoSQL (aka “Not Only SQL” or “Non-SQL”) products from AWS and GCP have experienced outsized growth.
Our data points to the NoSQL market reaching $1.5B in spend in 2020. AWS DocumentDB’s $60M in annualized revenue makes it the fastest growing NoSQL database dating back to its launch less than two years ago.
AWS is the clear leader among public cloud providers with 70% of market share, although
Azure has gained share, growing to 27% in 2020 YTD from less than 20% in 2017. AWS customers use approximately four databases on average, compared to about 2.5 on Azure and two on GCP.
The databases seeing the largest adoption this year include AWS Redshift (59% of customers) and GCP Cloud Memorystore for Redis (40% of GCP customers).