Oracle’s Engine Yard investment, announced recently, reveals that Oracle will spend money and take risks on other vendors in the cloud space even as it builds its own capabilities. Earlier this year, Oracle unveiled its extensive cloud platform, Oracle Cloud. Engine Yard is a Platform as a Service (PaaS) provider who has gained some impressive traction in recent years.
Engine Yard needs the cash to move faster as the much larger competition, including Microsoft, Google, and Salesforce.com, invest heavily in their own PaaS offerings. While Engine Yard is not a starving startup, they are not a cash rich behemoth, thus the need for more resources to build more weapons for the forthcoming battles with the big boys.
The investment by Oracle is not surprising considering that they will be both purchasing and heavily investing in cloud computing in the next few years to catch up with their direct competitors. Engine Yard is a nice, logical move for Oracle, and their investment should benefit both companies.