Oracle Focuses on China amid Beijings Efforts to Protect Domestic Software Industry

Published By : 24 Aug 2015 | Published By : QYRESEARCH

Oracle, the second-largest software company in the world, is focussing on the Chinese market, even though China is stressing to reduce its dependence on the U.S.-based software firms. Oracle is investing more in research and development, and manpower to boost its growth in the mainland China. According to Oracle co-chief executive Mark Hurd, it has become very important for the company to develop technology according to the needs in the Chinese market and sell and support its products in the country. Hurd is optimistic about the opportunity to invest in the country. However, other foreign technology suppliers are apprehensive with the Chinese government’s recent National Security Law. 


The new National Security Law in China calls for official review of any foreign technology products or services that would impact the security of the nation. Analysts have pointed out that the move by Beijing is to reduce the market share of the foreign technology firms and augment the growth of the domestic IT companies in China. Though the details about the implementation of the new law has been unclear, it has created an obstacle for the foreign technology suppliers to operate in the world’s third-largest IT market. 


Located in Silicon Valley in California, Oracle’s primarily competes in data centre and software systems. The company is a market leader in database technology and has been introducing high-performance servers for data centres. Hurd pointed out that Oracle has been investing in the Chinese market for long. However, he thinks that the company has not been as effective as it could be. The company is spending around US$5.3 billion in research and development and trying to update its customers about the broad product portfolio, especially in the cloud services. In March this year, the company announced its plan to hire around 1,000 new cloud computing staffs in the Asia Pacific region.  

Back To Top