---
title: Oracle's Price Increase to Erode Amazon's Positioning
description: Oracle has doubled its prices for Oracle databases on Amazon's cloud computing system, AWS. Read more about their strategy.
---

[PriceBeam Blog | Pricing Strategy & Profit Maximization Insights](https://blog.pricebeam.com)

# [Oracle's Price Increase to Erode Amazon's Positioning](https://blog.pricebeam.com/oracles-price-increase-to-erode-amazons-positioning)

 Written by [PriceBeam](https://blog.pricebeam.com/author/pricebeam) | March 24, 2017

In January, Oracle doubled the cost of running its software on Amazon's AWS cloud system overnight. While the change was subtly implemented, it is likely to have a significant effect on [Amazon's price positioning](https://blog.pricebeam.com/price-positioning-long-term-effects-of-short-term-strategies).   
With its AWS software, Amazon is aiming to be the cost leader in the cloud computing market, and thus, by doubling the price for all customers deploying Oracle Databases on AWS, Amazon's brand and [pricing become inconsistent](https://blog.pricebeam.com/inconsistencies-in-apples-product-pricing) to these customers. Also, this move will most likely increase short-term revenues as customers will pay up in the beginning.

Moreover, Oracle did not increase prices for its own cloud services, and so, running an Oracle Database using an Oracle Cloud Service all of a sudden looks very cheap compared to AWS. This shakes up Amazon's growth strategy quite a bit, although, it will only be a matter of time before customers start adapting to this new pricing and either use Oracle Databases on the Oracle platform, or switch to an alternative database system on AWS.

Read more: [https://www.forbes.com/sites/danwoods/2017/03/23/does-oracles-aws-pricing-increase-make-strategic-sense/2/#248de8985888](https://www.forbes.com/sites/danwoods/2017/03/23/does-oracles-aws-pricing-increase-make-strategic-sense/2/#248de8985888)

[View full post](https://blog.pricebeam.com/oracles-price-increase-to-erode-amazons-positioning)

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