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144 lines
6.5 KiB
144 lines
6.5 KiB
11 months ago
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<title>Julio Biason .Me 4.3</title>
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<a href="https://blog.juliobiason.me"><h1>Julio Biason .Me 4.3</h1></a>
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<p class="lead">Old school dev living in a 2.0 dev world</p>
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<li class="sidebar-nav-item"><a href="/">English</a></li>
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<li class="sidebar-nav-item"><a href="/pt">Português</a></li>
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<li class="sidebar-nav-item"><a href="/tags">Tags (EN)</a></li>
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<li class="sidebar-nav-item"><a href="/pt/tags">Tags (PT)</a></li>
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<div class="content container">
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<div class="post">
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<h1 class="post-title">The Hidden Value of TikTok</h1>
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<span class="post-date">
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2020-09-15
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<a href="https://blog.juliobiason.me/tags/thoughts/">#thoughts</a>
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<a href="https://blog.juliobiason.me/tags/tiktok/">#tiktok</a>
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<a href="https://blog.juliobiason.me/tags/oracle/">#oracle</a>
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<a href="https://blog.juliobiason.me/tags/cloud/">#cloud</a>
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</span>
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<p>As if 2020 wasn't weird enough, Oracle bought the US operations of TikTok,
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which makes no sense.</p>
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<p>Except when it does.</p>
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<span id="continue-reading"></span><h2 id="background-1">Background 1</h2>
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<p>For some reason, the USA president thought a popular Chinese application
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should not operate on USA soil. So TikTok would be banned from USA internet.</p>
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<p>Why? Dunno why, but probably for a trade war.</p>
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<p>There was one chance for TikTok to continue working on USA: if it was operated
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by an American company.</p>
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<h2 id="background-2">Background 2</h2>
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<p>Oracle is famous for its databases. When someone says "Oracle", the mind of
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most developers jump to databases, either by its namesake or MySQL or
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SQLite<sup class="footnote-reference"><a href="#1">1</a></sup><sup class="footnote-reference"><a href="#2">2</a></sup>.</p>
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<p>So, when the news of Oracle buying the TikTok operations in USA, that confused
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a lot of people, to the point of saying that <a href="https://www.theverge.com/2020/9/14/21436035/tiktok-oracle-deal-bytedance-president-trump-safety">it would accomplish
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nothing</a>.</p>
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<p>But it does. A lot. That's why we need more background.</p>
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<h2 id="background-3">Background 3</h2>
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<p>Oracle is also a player in a larger market called "Cloud Providers". This
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market is lead by Amazon with AWS, followed by Microsoft with Azure, then
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Google with Google Cloud Platform (GCP) and a mishmash of Huawei with Huawai
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Cloud and Oracle with Oracle Cloud.</p>
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<p>One of the important things, marketing-wise, is who is using your product. You
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get a big player and you can use them as sort of endorsement.</p>
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<p>AWS captures a lot of those, but most prominent are the Amazon Store itself
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and Netflix; Microsoft have the whole Office365; Google have Spotify. And, up
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to a few months, Oracle had nothing (Huawei have the whole Chinese market, so
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it is, basically, a player on its own).</p>
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<h2 id="background-4">Background 4</h2>
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<p>A few months ago, Zoom made a surprising announcement of taking <a href="https://www.reuters.com/article/us-oracle-zoom-video-commn-idUSKCN22A1R9">Oracle Cloud
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as its provider</a>.
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People were expecting this announcement saying something like Microsoft or
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even Google, but... Oracle? That was a huge surprise but, at the same time, it
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gave Oracle the leverage to say "the most used video conferencing software now
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runs on Oracle Cloud".</p>
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<h2 id="so-does-it-make-sense">So, does it make sense?</h2>
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<p>Sure it does. Not in the technological point, although Oracle could profit
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with the knowledge of serving lots of videos over the internet for its own
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cloud operations, but it gives them another big name as sort of endorsement of
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its cloud service. "TikTok, powered by Oracle Cloud" is one hell of an
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advertisement.</p>
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<p>And I think <em>that</em>'s why it does accomplish a lot.</p>
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<h2 id="the-biggest-loser">The biggest loser</h2>
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<p>When TikTok operations where on the table, Oracle wasn't the only one to get
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it: Microsoft was far away in talks with TikTok to be the USA operator of the
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service.</p>
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<p>But besides that, Microsoft isn't the biggest loser in this sale of
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operations. Google is.</p>
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<p>Remember when I mentioned that Google is considered to be in the third place
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in the cloud market? Now Oracle have Zoom and TikTok as endorsers and users of
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their services. And that could give a huge boost for Oracle Cloud, even if not
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by getting more customers or more profit, but the numbers from hosting those
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two services may give the impression they surpassed GCP.</p>
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<p>It's all a marketing move. And a pretty clever one.</p>
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<hr />
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<div class="footnote-definition" id="1"><sup class="footnote-definition-label">1</sup>
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<p>Yes, MySQL and SQLite are Oracle products.</p>
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</div>
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<div class="footnote-definition" id="2"><sup class="footnote-definition-label">2</sup>
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<p>NO! Not SQLite! Oracle bought <em>Berkeley DB</em>, which is mostly always
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available on Linux systems.</p>
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</div>
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