Alphabet, the parent company of Google, plans to stop using Oracle financial software and instead move to SAP, According to CNBC,
Google notified employees in an email that the company’s core financial systems would be moved to SAP in May. The switch only affects the program Google uses to track finances; there’s no hint that the company is ditching Oracle for other systems.
The move comes as Google and Oracle compete more aggressively in the cloud computing industry, and it follows a similar move by Amazon, which has drastically decreased its use of Oracle software in favor of its own cloud services over the last few years.
Oracle co-founder, chairman, and chief technology officer Larry Ellison makes a statement about how businesses agree to use Oracle’s software and services on a daily basis.
Last Month, Ellison spent one-third of Oracle’s 45-minute earnings call addressing customer activity, stating that Oracle would take over more than half of SAP’s users.
The amount of money Google paid Oracle for the financial software is unknown.
During a meeting with analysts in 2019, Ellison said that when Google catalogs large volumes of data, the data is “probably sitting in Oracle databases.”
Since this change only affects Oracle’s financial software, this might well be the case.
Oracle’s shares dropped marginally as a result of the news, while SAP’s stock soared, closing up 4.8 percent.
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