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Test Code : 1Z0-574
Test Name : Oracle IT Architecture Release 3 Essentials
Vendor Name : Oracle
: 176 Real Questions

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Oracle IT Architecture Release 3 Essentials book

should Oracle traders Be involved About MongoDB's Success? | 1Z0-574 Real Questions and VCE Practice Test

Two weeks ago, two database agencies reported profits: incumbent tremendous Oracle (NYSE:ORCL) and upstart MongoDB (NASDAQ:MDB). while Oracle's revenue and revenue beat expectations, its tips turned into viewed via some as disappointing, and the inventory hasn't completed much for the reason that.

MongoDB, in the meantime, destroyed income and revenue expectations, posting an incredible seventy one% salary boom fee, and the stock is up seventy eight% on the 12 months.

MDB Chart

MDB records via YCharts

So, should Oracle be worried about this younger, speedy-growing business?

SQL vs. doc databases 

MongoDB's open-source database is developed on a unique technological architecture than Oracle's core relational database. The company's founders realized that legacy relational databases have been irritating to use during this new world of unstructured information, which does not always healthy into neat row-and-column codecs. They, in flip, got here up with a document-based database architecture, which is far more flexible. 

Three businessmen sticking their heads in the sand as a chart next to them shows a red down arrow.

Does Oracle have its head in the sand about MongoDB? graphic supply: Getty photos.

Oracle turns a blind eye

After Oracle's earnings record, CEO Mark Hurd changed into interviewed on CNBC, where he changed into requested about MongoDB's fact that legacy databases were built on "old-fashioned know-how."

Hurd's answer did not exactly inspire self belief:

seem to be at the numbers, right? I suggest, analyze their boom, you be aware of, relative to the market boom. we've roughly 50% of the market. each different database dollar is spent with us and if you study -- do not even take one quarter, take 12 quarters, we're transforming into faster than the overall market, which is a $40 billion market. So they won a little bit of share, and they just delivered the most entertaining database unencumber that they now have had in their background, which is autonomous database, which is going to carry an entire set of capabilities, from synthetic intelligence in reality being built-in into the database. So from a feature set point of view, whatever this guy is that you just're talking about turned into asserting, um, here's um, you comprehend, I don't know -- 15 years, 20 years ahead of, type of, that technology? So, you be aware of, the smartest thing you could do in the event you get feedback like it really is, just seem to be at the numbers and think about the data, and see what they may be telling you. and that they let you know we're starting to be sooner than the market and gaining share.

a couple of issues stuck out to me in the above quote:

  • Hurd did not point out the change between SQL vs. doc-based mostly architectures.
  • He observed Dev Ittycheria, CEO of MongoDB -- which is an $8 billion market cap enterprise -- as "this guy," both refusing to renowned MongoDB, and even worse, failed to understand who he became.
  • Hurd referred to to "just seem to be at the numbers." if you do this, MongoDB's increase potentialities seem to be pretty respectable relative to Oracle's.
  • Embellishing on the third element, once again, MongoDB's earnings grew 71%, accelerating over the prior quarter, while Oracle's common boom expense changed into about flat. moving into the Oracle's core database section, Oracle's cloud functions and license assist segment, which contains each ordinary and cloud database, grew simply 1% remaining quarter, although three% in regular foreign money, a deceleration from the outdated three quarters.

    Oracle additionally doesn't break out its on-premise database vs. cloud database profits. basically, it would not even separate database revenue from its other functions such as human capital administration or enterprise aid planning software, which might make the skeptical investor wonder if Oracle is attempting to conceal something.

    in spite of the fact that Hurd says Oracle's income should speed up within the back half of 2019 and 2020 because the self sustaining database ramps up, it be still a far cry from MongoDB's disruptive 70%-plus price from this fall. additionally, MongoDB does separate out its on-premise profits from its cloud Atlas product, which grew a whopping 400% ultimate quarter. I think about if Oracle had a product becoming anyplace near that cost, administration would make certain to call it out.

    take a look at the latest revenue name transcripts for Oracle, MongoDB, and Amazon.

    An innovator's dilemma?

    still, on pure salary numbers, Oracle does not appear to have lots to worry from MongoDB -- at the least on the floor. Oracle has roughly $forty billion in earnings, about half that from its database business. in the meantime, MongoDB's trailing-12-month earnings is simply $256 million, a little more than 1% of Oracle's database earnings. Oracle also faces competitive threats from the likes of Amazon.com (NASDAQ:AMZN), with its new database capabilities, and different greater organizations.

    however in Clayton Christensen's 1997 publication The Innovator's catch 22 situation: When New applied sciences cause excellent organisations to Fail, he argued that enormous firms can get disrupted as a result of they may be hesitant to disrupt latest excessive-margin corporations (Oracle has working margins of 35%), and thus ignore new technologies that have little immediate advantage.  

    might MongoDB take on Oracle extra without delay in the future? it be hard to say, however Hurd's comments remind me of ex-HBO CEO Jeff Bewkes brushing aside Netflix (NASDAQ: NFLX) as "the Albanian military." while or not it's no longer convenient to swap from Oracle's databases, such as you would from a cable subscription, if I have been an Oracle shareholder, Hurd's dismissive response would difficulty me.


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