Google parent company Alphabet is moving its internal financial operations from Oracle to SAP software. After the defeat by the US Supreme Court, this news is likely to represent another low blow for the financial software specialist on the same day. Because he competes with Google on other fronts as well. Both Google Cloud and Oracle are trying to grow their respective shares of the cloud computing market by targeting enterprise customers – especially those who need hybrid and multi-cloud services.
As reported by the US news service CNBC, Oracle refused for years to certify its database software for the Google Cloud, which made Google’s offer difficult for customers who wanted to host Oracle databases in the cloud.
Painful loss for Oracle
With Google as a major customer, Oracle is losing one of the tech giants that was particularly important to the company’s strategy. Oracle co-founder and CTO Larry Ellison recently proudly pointed out that particularly large companies had switched from German competitor SAP to Oracle cloud applications. During Oracle’s third quarter conference call, Ellison enumerated dozens of companies and government agencies that have switched from SAP ERP to Fusion ERP.
The online giant Google had previously fended off a billion-dollar lawsuit by Oracle for alleged copyright infringement in the Android smartphone system before the US Supreme Court on Easter Monday. The Supreme Court in Washington ruled that Google had not committed any legal violations and thus overruled a judgment from the lower instance.
This is a big victory for Google and its parent company Alphabet. Oracle had asked for around nine billion dollars in compensation. Google had used approximately 11,000 lines of Java programming language software code for Android. Oracle, which bought Java in 2010 with the acquisition of Sun Microsystems, sued Google later that year. The responsible judge had initially decided that the Java interfaces could not be protected by copyright. However, this judgment was overturned in appeal proceedings. Google appealed to the Supreme Court in January 2020.