#AMAZON COLOR ORACLE DRIVERS#

AWS’s approach was creating a product and then have users adopt it.

Per Trefis estimates, Oracle should have an enterprise value of $251 billion at an EV/EBITDA of 12.7x (2020 EBITDA of $20 billion).

Oracle was late to the game with its first generation of cloud offerings failing and the company subsequently investing heavily in development to bring to market its Gen 2 cloud.

Per Trefis estimates, AWS commands an enterprise value of $493 billion at an EV/EBITDA of 27x (2020 EBITDA of $18 billion).

The idea of Amazon Web Services was to have infrastructure that could be rent out to customers who wanted lower bills for their storage and compute requirements.

Amazon was possibly the first vendor to have created the public cloud ecosystem in mid-2000s, but Oracle has been in the database business for nearly 40 years.

#AMAZON COLOR ORACLE DRIVERS#

You can modify any of the key drivers to visualize the impact of changes on the potential acquisition price.

Our estimate is based on Oracle’s standalone value as well as its value as a part of the combined entity with Amazon. We detail why Amazon could acquire Oracle, and also estimate how much a potential deal could be worth in an interactive dashboard.

While the idea may sound very ambitious, in order to keep itself at the top of the cloud technology food-chain, Oracle may be the best acquisition Amazon could ever make. Per Trefis analysis, a merger of Amazon and Oracle could unlock significant value. Photographer: David Paul Morris/Bloomberg *** Local Caption *** Larry Ellison © 2014 Bloomberg Finance LP joins the cloud wars for commodity services that are being waged between Amazon, Microsoft and Google - the three largest cloud providers. Francisco, California, U.S., on Tuesday, Sept. Larry Ellison, chairman of Oracle Corp., speaks during the Oracle OpenWorld 2014 conference in San.

Amazon color oracle