The lines are blurring between database services provided by cloud database providers, such as Redis, MongoDB, Neo4j, etc., and cloud providers, such as AWS, Microsoft Azure, and GCP, which now provide similar services. This includes Amazon DynamoDB, Amazon Neptune ServerlessAzure Cosmos DB and Google Cloud Firestore. But, why are these database services not as popular as those provided by cloud database providers? This is where the conversation about convenience versus accessibility comes into play.
On the one hand, cloud service providers can make systems easier to access as organizations leverage their infrastructure, and on the other hand, cloud database providers are more suited than ever before to build specific use cases for developers and end users. For example, Redis carves a niche for being relevant to real-time databases, while MongoDB for NoSQL and Neo4j for graph databases.
Yiftach Shulmanco-founder and CTO of Redis, said Aim That the database market doubled itself between 2017 and 2022. Quoting Gartner, he said: “What was 40 billion in 2017 has grown to 80 billion in 2021, at a compound annual growth rate of nearly 20% per year. You don’t find a lot of a market that much.” The size is growing at this rate.”
In 2021, the sheer number of startups commanding high valuations is being described by many as the “golden age of databases.” According to CB Insights, traditional database companies that combine processing engine and storage received $2.3 billion in funding across 54 deals in 2020, up from $849 million in 2019. The stats don’t include the newer entities that separate computing from warehouses.
Schulman says that in the serverless world we live in, what matters is not only the memory but also the number of processing units, that is, the number of processing requests processed per second, which defines a real-time data platform. This is where Redis is headed as well. Hence, the engine’s processing of information is just as important as the repository where it is stored.
Hold on to the big money
However, peak database systems are facing a decline since funding for the large database nearly ceased in the latter half of 2022, though, as Dr. Andy Pavlo writes, OttertuneYou know, there have been many smaller rounds for early stage startups.
Pavlo identifies two reasons for the decline in large funding rounds:
- First, the most obvious explanation, he says, is that the entire tech industry has contracted, due in part to concerns about inflation, interest rates, and the demise of the cryptocurrency industry.
- Second, many of the companies that are able to raise funding have already done so before things dry up. For example, Neo4j $325 million in Series F. led by Eurazeo in June 2021. Similarly, in 2020 Redis Labs raised $100 million in funding. Regarding this, Redis CEO Ofer Bengal He said that although they still have a large part of the funds raised in the previous round, the new financing will strengthen their financial position.
However, in order to survive, they will still have to seek out investor interest, which will continue to wane, especially with the many database independent software vendors (ISVs) currently on the market. Pavlo argues that the only way forward for multibillion-dollar companies is to go public or go bankrupt since they are too expensive for acquisitions for most companies and only companies known for large M&A (for example, big tech companies like Amazon, Google, and Microsoft) ) their cloud database offerings.
Gartner’s analysis supports this, and predicts it 50% independent database management system vendors will cease operations by 2025. The expectation that many independent sellers will fade away basically means that there will be Consolidation payment. This means that large database companies will expand their offerings and add more and more product capabilities to the mix.
Speaking about this, MongoDB head of product Saher Azzam He said, “It’s the first part of strengthening capabilities. As an end customer, you can’t rationalize, combine and manage 50 different resources to have a cloud data architecture.” Thus, the new generation of cloud data platform companies give organizations less room for complacency while paving the way for more flexibility over time.
The threat of the cloud resonated with Shulman, who said that “the cloud is over everywhere”. For example, a lot of Oracle business It has been taken over by cloud service providers. It is reported that if we look at the database market at present, we will find that in 2017, the top five companies controlled 86% of the market. The number is now down to 80%. More importantly, he says, there’s a change in the top five: It’s largely dominated by AWS, Azure, GCP, etc., he says, and the rest, he says, is occupied by ISVs like Redis, MongoDB, and others.
All of the high-tech cloud service providers have created similar data services to those offered by these independent vendors to meet their business needs. But, realizing that despite being their competitors, ISVs have to rely on cloud platforms as well to host their services, MongoDB He saidWe are in a love-hate relationship with our cloud partners.
Will we see more UHD?
When asked if he sees more super branches like AWS, Azure, and GCP in the future to meet the organization’s demands for massive computing expansion, Schulman said we’re already seeing a trend of developing more and more data centers because organizations intend to bring data closer to the user.
And this is also where Redis comes in because part of the technology that Redis is developing is Redis distributed globally via An active geographic distribution of Redis, “allowing users to think that this is a local Redis, but whatever they write is iterated all over the world.” Hence, it solves the need to bring data closer to you.
Tejas Baldev, Sales Director – APAC at Redis, gave the example of Flipkart, which built its own data centers instead of putting it on AWS, which was the only option at the time. By going to the data center, they can expand beautifully most of the time during Flipkart Big Billion Days. “More large and tenth companies will at some point think that it would make sense for them to move to the public cloud,” he added, referring to how data center capabilities can be accessed within the public cloud.
In India, large cloud service providers are emerging, like Airtel, for example, which is investing heavily in its data centers. But, as separate ideas, he also added that they don’t think the whole private cloud story will carry over to the public cloud. However, Reddis will offer the same experience on private and public clouds since they’re coming from the public cloud, they’ve been able to replicate things on the private cloud pretty easily.