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<a href="https:&#x2F;&#x2F;blog.juliobiason.me"><h1>Julio Biason .Me 4.3</h1></a>
<p class="lead">Old school dev living in a 2.0 dev world</p>
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<h1 class="post-title">The Hidden Value of TikTok</h1>
<span class="post-date">
2020-09-15
<a href="https://blog.juliobiason.me/tags/thoughts/">#thoughts</a>
<a href="https://blog.juliobiason.me/tags/tiktok/">#tiktok</a>
<a href="https://blog.juliobiason.me/tags/oracle/">#oracle</a>
<a href="https://blog.juliobiason.me/tags/cloud/">#cloud</a>
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<p>As if 2020 wasn't weird enough, Oracle bought the US operations of TikTok,
which makes no sense.</p>
<p>Except when it does.</p>
<span id="continue-reading"></span><h2 id="background-1">Background 1</h2>
<p>For some reason, the USA president thought a popular Chinese application
should not operate on USA soil. So TikTok would be banned from USA internet.</p>
<p>Why? Dunno why, but probably for a trade war.</p>
<p>There was one chance for TikTok to continue working on USA: if it was operated
by an American company.</p>
<h2 id="background-2">Background 2</h2>
<p>Oracle is famous for its databases. When someone says &quot;Oracle&quot;, the mind of
most developers jump to databases, either by its namesake or MySQL or
SQLite<sup class="footnote-reference"><a href="#1">1</a></sup><sup class="footnote-reference"><a href="#2">2</a></sup>.</p>
<p>So, when the news of Oracle buying the TikTok operations in USA, that confused
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
nothing</a>.</p>
<p>But it does. A lot. That's why we need more background.</p>
<h2 id="background-3">Background 3</h2>
<p>Oracle is also a player in a larger market called &quot;Cloud Providers&quot;. This
market is lead by Amazon with AWS, followed by Microsoft with Azure, then
Google with Google Cloud Platform (GCP) and a mishmash of Huawei with Huawai
Cloud and Oracle with Oracle Cloud.</p>
<p>One of the important things, marketing-wise, is who is using your product. You
get a big player and you can use them as sort of endorsement.</p>
<p>AWS captures a lot of those, but most prominent are the Amazon Store itself
and Netflix; Microsoft have the whole Office365; Google have Spotify. And, up
to a few months, Oracle had nothing (Huawei have the whole Chinese market, so
it is, basically, a player on its own).</p>
<h2 id="background-4">Background 4</h2>
<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
as its provider</a>.
People were expecting this announcement saying something like Microsoft or
even Google, but... Oracle? That was a huge surprise but, at the same time, it
gave Oracle the leverage to say &quot;the most used video conferencing software now
runs on Oracle Cloud&quot;.</p>
<h2 id="so-does-it-make-sense">So, does it make sense?</h2>
<p>Sure it does. Not in the technological point, although Oracle could profit
with the knowledge of serving lots of videos over the internet for its own
cloud operations, but it gives them another big name as sort of endorsement of
its cloud service. &quot;TikTok, powered by Oracle Cloud&quot; is one hell of an
advertisement.</p>
<p>And I think <em>that</em>'s why it does accomplish a lot.</p>
<h2 id="the-biggest-loser">The biggest loser</h2>
<p>When TikTok operations where on the table, Oracle wasn't the only one to get
it: Microsoft was far away in talks with TikTok to be the USA operator of the
service.</p>
<p>But besides that, Microsoft isn't the biggest loser in this sale of
operations. Google is.</p>
<p>Remember when I mentioned that Google is considered to be in the third place
in the cloud market? Now Oracle have Zoom and TikTok as endorsers and users of
their services. And that could give a huge boost for Oracle Cloud, even if not
by getting more customers or more profit, but the numbers from hosting those
two services may give the impression they surpassed GCP.</p>
<p>It's all a marketing move. And a pretty clever one.</p>
<hr />
<div class="footnote-definition" id="1"><sup class="footnote-definition-label">1</sup>
<p>Yes, MySQL and SQLite are Oracle products.</p>
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<div class="footnote-definition" id="2"><sup class="footnote-definition-label">2</sup>
<p>NO! Not SQLite! Oracle bought <em>Berkeley DB</em>, which is mostly always
available on Linux systems.</p>
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