Oracle acquires Dyn in ongoing offensive against Amazon
Share on Facebook
Share on Twitter
Share on Google+
Share on Reddit
Share on Email

Image Credit: Oracle, Dyn

Image Credit: Oracle, Dyn

Despite a major cyber attack against Dyn in October, Oracle is acquiring the large DNS provider that supports websites such as Twitter, Amazon, and Netflix

Oracle is acquiring DNS provider Dyn for an undisclosed sum, as the company hopes to better compete in offering Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) options. Despite an enormous DDoS attack against Dyn in October that halted the traffic of websites such as Twitter, Spotify, Amazon, and Netflix, Oracle is in the midst of finalizing its acquisition of the major DNS provider. The price of the deal has not been disclosed.

Oracle sees cloud services as a major growth area, with its Q4 2016 revenue for them coming in at $859 million, an increase of nearly 50% from before. (Q1 2017 figures are already slightly higher.) The company’s cloud service business is worth $2.9 billion, of which $2.2 billion was in software-as-a-service (SaaS) and PaaS.

The company expects this to increase as it adds more customers on the IaaS end, and continues to develop its SaaS and PaaS business. Though still trailing Amazon – compare that $2.9 billion for the year with average AWS quarterlies worth that much or more – Oracle hopes it will be able to compete soon and lure customers who use their other products onto their own cloud, rather than those offered by other companies.

Oracle is not as well established in these services as competitors Amazon Web Services (AWS), Google Cloud, IBM, Workday, and Microsoft Azure are. To remedy this, the company is developing its own native systems and acquiring enterprises that can be built into that process.

Where does Dyn come in, then? Oracle’s statement noted that, “Dyn’s immensely scalable and global DNS is a critical core component and a natural extension to our cloud computing platform.” And as the company’s CSO Kyle York noted in a blog post, “Adding Dyn’s best-in-class DNS solution to Oracle cloud will provide enterprise customers a one-stop shop for infrastructure services” on top of Oracle’s existing IaaS and PaaS offerings.

Big push on Amazon

York also remarked that Oracle is “building the world’s most comprehensive cloud computing platform from the ground up,” referencing the company’s strategy to implement second generation IaaS data centers and grow its other cloud services as rapidly as possible. Developing a full-spectrum cloud business will (ideally) keep those customers in the Oracle database ecosystem. For IaaS, the lead time other companies have had is measurable in years and bringing IaaS forward will impact how it further develops, or re-develops, all of its other cloud businesses.

Part of that strategy, according to CloudPundit, is heavily recruiting from those other big name companies. Oracle has spent around $2 billion this year, reports Business Cloud News, to develop its cloud infrastructure offerings. Its declared focus going forward will be on customer experience, enterprise resource management, and human capital management, as these are its strengths going into 2017.

Oracle’s second generation IaaS will of course be fully compatible with the company’s other hardware, a comprehensive package being an advantage going forward against Google and Amazon. Especially as Oracle’s premium licensing and hardware revenues are slipping and customers using Oracle chose competitors’ cloud services, not just in IaaS but SaaS and PaaS as well.

Oracle CTO Larry Ellison, once a vocal cloud skeptic as CEO of the company, most recently detailed that strategy at the OpenWorld conference in September, where he outlined how the company would develop the centers to reduce the possibility of outages and make the services run faster.

Amazon, for its part, remains unruffled by Oracle’s claims, pointing to outsiders’ projections that the new IaaS won’t be competitive for at least a few years.

Ellison grandly declared that the age of AWS is ending with this new effort on Oracle’s part, though the blog UP2V, noted at the time of the announcement that the new IaaS is likely going to appeal to “niche workloads on IaaS like mission critical, high performance applications,” with Amazon specializing in general-purpose use.

CloudPundit further predicted that Oracle will face an uphill battle in terms of pricing and features against its competitors, but that it has advantages going forward given its existing services. And by way of comparison, UP2V also notes that AWS is much stronger in IaaS, but does not offer the same range of SaaS options as Oracle does.

IaaS, then, is meant to level the playing field and lure customers away from Amazon.

Don’t forget security

Still, by adding Dyn to its portfolio, Oracle is now much better placed than ever before to wage a campaign against its rivals and bolster its other core businesses. This is in fact the second cloud-related acquisition by Oracle in 2016. It previously acquired the Palerra cloud access security broker (CASB), which as TechCrunch notes, “covers breach discovery, compliance, insider threat detection and incident response” issues for customers.

Palerra was Oracle’s first major cyber security deal with cloud computing in mind, and fits in with the larger industry trend of major providers, including competitor Microsoft, beefing up protection and monitoring functions for their cloud businesses. Given what happened to Dyn earlier this fall, when its biggest clients were crippled by DDoS attacks on it through an IoT botnet, security remains a major concern going forward.

Share on:Share
Share on Facebook
Share on Twitter
Share on Google+
Share on Reddit
Share on Email

More Goodies From IT


4 Programs Your Business Should Consider

KKR acquires Optiv to expand its IT security business worldwide

Israeli startup Sealights raises huge $11 million first funding round