Silicon Valley's Thirty-Year Frenzy: He Created the "Oracle" Myth but Failed in the Chinese Market
The California sunshine bathes Silicon Valley, where countless tech myths have been born and a group of ambitious dreamers have been nurtured. Larry Ellison, a "bad boy" who emerged from the slums, wrote his own legend here with his extraordinary talent and tenacity. The Oracle company he founded once became the world's second-largest software giant, and its database products were unparalleled, even Microsoft could not catch up.
However, this Silicon Valley madman encountered Waterloo in the Chinese market. This tech giant, which once dominated China, eventually left the stage quietly, leaving a mess behind. What caused Oracle to fall from its peak? What are the unknown stories behind this 30-year business legend?
From "Poor Boy" to Software Tycoon: Larry Ellison's Ambition and Dreams
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In 1944, Larry Ellison was born into a poor Jewish family in Brooklyn, New York. At the age of nine months, he unfortunately contracted pneumonia and was abandoned by his biological mother. He was then adopted by a couple in Chicago. His adoptive parents were very strict with him, instilling in him the value of "winners take all" from a young age. Perhaps influenced by his childhood experiences, Larry was full of rebellion and ambition in his bones. He longed for success and to prove himself.
During his college years, Larry was obsessed with computer technology. He keenly realized that this emerging field contained huge opportunities. However, he was not a traditional "good student" in the conventional sense. His rebellious personality led him to drop out of college twice, but this did not prevent him from becoming an excellent programmer. He moved between several tech companies, accumulating rich experience.
In 1977, Larry co-founded the "Software Development Laboratory" with two colleagues, which was the predecessor of Oracle. At that time, relational database technology had just emerged. Larry keenly seized this opportunity and led the team to develop a database software called "Oracle," successfully launching it into the market.Leveraging its technological edge and Larry's strong business acumen, Oracle Corporation rapidly rose to prominence, conquering the database market. By the early 1990s, Oracle had grown into the world's second-largest software company, and Larry Ellison had become one of the most dazzling stars in Silicon Valley.
Entering China: From the "Honeymoon Period" to "Parting Ways"
The spring breeze of China's reform and opening up reached across the ocean to Silicon Valley and stirred Larry Ellison's heart. In 1989, Oracle officially entered the Chinese market. At that time, China's information construction had just begun, and there was an urgent demand for advanced database technology.
With its technological advantages and first-mover advantages, Oracle quickly established a foothold in the Chinese market. Its database products almost monopolized important industries such as finance and telecommunications in China. For a time, Oracle enjoyed immense success in the Chinese market, making a fortune.
However, as time went on, Oracle's reputation in the Chinese market gradually declined. The main reasons were its arrogant market strategy and high charging standards.
Oracle practiced "taking what comes" in the Chinese market, with almost no localization of research and development and innovation. Its products and services struggled to meet the growing personalized needs of Chinese enterprises. Additionally, Oracle charged Chinese enterprises high software licensing fees and service fees, even demanding a 20% service fee based on the contract amount each year. This burdened many Chinese enterprises.What has further displeased Chinese enterprises is that Oracle has been implementing a "de-Sinicization" strategy in the Chinese market, refusing to cultivate local technical talents in China, and even openly stating that "they will not allow China to cultivate more engineers." This arrogant attitude has ultimately aroused strong dissatisfaction among Chinese enterprises.
"Aliyun" Emerges as a Newcomer, and the Rise of Chinese Databases
Entering the 21st century, with the rapid development of China's internet industry, the demand for database technology among Chinese enterprises has grown explosively. Concurrently, local Chinese database technology has also begun to rise, with the most representative being the "Aliyun" system developed by Alibaba.
In 2009, Alibaba began to independently research and develop cloud computing and big data systems, naming it "Feitian." At that time, Larry Ellison scoffed at this, publicly mocking: "This is just a very foolish concept of the Chinese. With their technology and level, they simply do not have the capability for independent research and development."
Only four years later, the Aliyun system officially went online and quickly gained widespread application in e-commerce, finance, logistics, and other fields. The success of Aliyun broke the monopoly of Oracle and other foreign giants in the Chinese database market, also signifying that Chinese database technology began to step onto the world stage.
In addition to Aliyun, Chinese tech giants such as Huawei and Tencent have also increased their investment in the database field and launched their own database products. These Chinese database products are not only technologically aligned with international advanced levels but also more closely meet the actual needs of Chinese enterprises, with more affordable prices.
Oracle's Dismal Exit and the Deepening Sino-American Tech CompetitionFacing the rise of Chinese database technology and the collective boycott by Chinese enterprises, Oracle has been retreating in the Chinese market. In 2019, Oracle closed its R&D center in Beijing and laid off more than 900 Chinese employees. This marked the exit of the once-software giant from the Chinese market.
Oracle's failure in China is a microcosm of the Sino-American technological competition. It warns us that technological leadership is not a one-time effort, and market strategy mistakes can also lead to failure. More importantly, it has allowed us to see the rise of Chinese technological power, as well as the determination and capability of Chinese enterprises for independent innovation.
Nowadays, China has become the world's largest database market, and Chinese database companies are beginning to shine on the international stage. In the future, as the Sino-American technological competition continues to intensify, Chinese database companies will face greater challenges but also greater opportunities for development.
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