OceanBase: A Powerful Force in the Database World, Fueled by Dual Growth Engines

Meta Description: Dive into the world of OceanBase, a leading database provider that delivers powerful solutions through its dual-engine strategy of proprietary cloud and public cloud, serving over 2,000 clients globally with a significant increase in customer base and revenue. Learn about the driving forces behind OceanBase's success, including its commitment to innovation, strong partnerships, and global expansion.

OceanBase, the brains behind the Alipay transaction system, has come a long way since its humble beginnings in 2014. This once internal tool has since burst onto the global scene, providing a powerful and reliable database solution to companies of all sizes. Today, OceanBase boasts a formidable client roster, including some of the biggest names in finance, telecommunications, and tech, and is making waves in new industries like transportation and energy.

But what's the secret behind OceanBase's meteoric rise? The answer lies in its strategic approach. The company operates on a dual-engine model, with both a proprietary cloud and a public cloud offering, catering to a diverse range of client needs. This strategy has proven to be remarkably successful, with OceanBase reporting a staggering customer growth rate of over 100% for four consecutive years. Its proprietary cloud has witnessed a 50% increase in customers over the past year, while the public cloud, the company's second growth engine, has seen a remarkable 130% jump in customer acquisition.

OceanBase's Proprietary Cloud: A Force in Finance and Beyond

"Data is a reflection of the physical world in the information world," explains Qian Weining, dean of the East China Normal University's Data College. "It carries values, and the database is the foundation of this data infrastructure." This philosophy drives OceanBase's commitment to offering reliable and secure database solutions, a mission that is particularly relevant in the financial sector.

OceanBase's roots lie in the heart of Alibaba, providing the backbone for the e-commerce giant's Alipay platform. This experience has instilled a deep understanding of the demands of mission-critical systems, leading to the development of robust and scalable solutions that can withstand the rigors of high-volume transactions and complex financial data. This strength has translated into significant success in the financial sector, with OceanBase now serving all policy banks, five out of six state-owned commercial banks, 70% of leading insurance groups, 75% of leading securities companies, 50% of leading funds, and nearly 100 banks with assets exceeding 100 billion yuan. This dominance extends beyond China, with OceanBase making inroads into the international financial market, capturing the trust of foreign financial institutions.

But OceanBase's ambitions don't stop at finance. The company is also expanding its reach to other critical sectors, including government services, telecommunications, and transportation. In the public sector, OceanBase powers the core systems of a quarter of provincial human resources and social security departments in China. It also serves as the backbone for the core systems of major mobile operators, supporting the B/M/O domains of China Mobile and providing service to 60% of its nationwide subscriber base.

OceanBase's foray into transportation is equally impressive. The company is playing a crucial role in securing the critical systems of major airlines like China United Airlines and Southern Airlines, and is powering the core systems of subway networks in Beijing, Shanghai, Dalian, and Xi'an, ensuring the smooth operation of these vital transportation infrastructure.

OceanBase's Public Cloud: Enabling Multi-Cloud and Cost Reduction

While the proprietary cloud caters to specific needs, OceanBase's public cloud offering, OB Cloud, is designed to cater to the broader market of cloud-driven companies. Launched in 2022, OB Cloud offers clients the flexibility of deploying their databases across multiple cloud platforms, addressing a crucial need in the market.

"We observed that many cloud platforms offer their own cloud-native databases," explains Yin Boxue, general manager of OceanBase's Public Cloud Business Unit. "However, these databases are often tied to the specific cloud platform. Customers are increasingly seeking a truly multi-cloud native database."

OceanBase's approach to multi-cloud addresses this demand head-on. OB Cloud allows companies to seamlessly integrate their databases with various cloud providers, including Alibaba Cloud, Amazon Web Services, Google Cloud, Huawei Cloud, and Tencent Cloud. This flexibility empowers businesses to leverage the best cloud services for their needs while ensuring seamless interoperability.

OB Cloud has already attracted a diverse clientele, including new manufacturing companies like Li Auto, SAIC Volkswagen, and Vivo, as well as prominent retail brands like Pop Mart, Haidilao, and Belle Group. The platform also caters to leading internet companies such as Ctrip, Metaverse, Good Future, Amap, and Kwai, as well as international players like Indonesian e-wallet DANA, Philippine e-wallet GCash, African e-wallet PalmPay, Iraqi national credit card Qicard, and Saudi cloud computing company SCCC.

The success of OB Cloud is evident in its impact on companies like Haidilao. In 2020, Haidilao implemented a comprehensive "cloud-based" strategy, moving all its core business systems to the cloud, marking a significant step in its digital transformation journey. In 2023, the company further leveraged OB Cloud to upgrade its inventory management system, resulting in improved data consistency, increased concurrency, and enhanced real-time analytics capabilities. This upgrade has not only ensured a consistent supply of high-quality ingredients for Haidilao's customers but also significantly reduced operational costs. Haidilao's real-time analytics capabilities saw a 45% improvement, while overall database costs were cut by 50%.

OceanBase's Global Ambitions

OceanBase's vision extends far beyond the Chinese market. Recognizing the global demand for multi-cloud and cost-effective solutions, the company is actively expanding its reach to international markets. OB Cloud currently operates in over 100 availability zones across 30 geographical regions in the Americas, Europe, and Asia, offering service in over 10 countries.

This commitment to global expansion has earned OceanBase accolades on the international stage. In 2023, OB Cloud was named one of only 10 companies globally to receive a "Mention" in Gartner's Magic Quadrant for Cloud Database Management Systems report. In 2024, OB Cloud achieved the distinction of being named "Customer Choice" in the Asia-Pacific region and "Exemplary Performer" globally in Gartner's Cloud Database Customer Voice report.

OceanBase's ambitious plans for global domination are evident in the company's resource allocation strategy. Over half of OceanBase's research resources are now dedicated to the public cloud, ensuring that the company maintains a competitive edge and continues to innovate at a rapid pace.

While research is critical, OceanBase recognizes the importance of strong partnerships in driving its business growth. The company is committed to a "partner-first" approach, fostering a robust ecosystem that empowers partners to drive sales and deliver exceptional service.

In 2024, OceanBase saw a 100% increase in industry solution partners, a 50% rise in hot solutions, and a 70% increase in partner contract signings. Core distributor partners contributed 60% of the company's revenue, while technical service partners independently delivered over 30% of projects, generating over 50% of revenue.

OceanBase's CEO, Yang Bing, recognizes the crucial role of partners in the company's success. He emphasizes the shift towards a new phase of ecosystem development, with 2025 marking a year of focused efforts in both domestic and international markets. The company will continue to adopt a "be integrated" strategy, further incentivizing partners to tackle critical business systems, public cloud, and international expansion. This focus on partner empowerment aims to drive both business and capabilities development, creating a collaborative environment for growth.

OceanBase's Dual-Engine Strategy: A Recipe for Success

OceanBase's dual-engine strategy—a combination of proprietary and public cloud offerings— has proven to be a winning formula. The company's commitment to innovation, its focus on building strong partnerships, and its ambitious global expansion plans have positioned OceanBase as a leading force in the database world. With the continued support of its partners and its unwavering dedication to excellence, OceanBase is poised to achieve even greater heights in the years to come.

FAQs

1. What are the key benefits of OceanBase's dual-engine strategy?

OceanBase's dual-engine strategy offers a compelling combination of benefits:

  • Enhanced flexibility: Clients have the choice between proprietary and public cloud solutions, catering to a wide spectrum of needs and preferences.

  • Increased scalability: Both engines are designed for high scalability, enabling businesses to handle growing data volumes and transaction demands.

  • Improved market reach: The dual-engine approach allows OceanBase to target both specific industry verticals and the broader cloud market, expanding its customer base.

2. How does OceanBase ensure data security and reliability in its cloud offerings?

OceanBase takes data security and reliability extremely seriously. Key measures include:

  • Robust security protocols: Implementing industry-standard encryption and access control mechanisms to protect sensitive data.

  • Fault-tolerant architecture: Designing systems with redundancies and failover capabilities to ensure continuous operation even in the event of failures.

  • Regular audits and certifications: Maintaining rigorous security audits and obtaining relevant certifications to demonstrate compliance with industry standards.

3. What are the key factors driving OceanBase's global expansion?

OceanBase's global expansion is driven by several key factors:

  • Growing demand for multi-cloud solutions: Businesses are increasingly seeking flexible cloud solutions that can integrate seamlessly with various cloud providers.

  • Rising need for cost-effective database solutions: Companies are looking for ways to optimize their IT spending, and cloud-based databases offer a cost-effective alternative to traditional on-premise solutions.

  • Expanding global footprint of Chinese businesses: As Chinese companies expand their operations internationally, they require reliable database solutions that can support their global ambitions.

4. How is OceanBase empowering its partner ecosystem to drive growth?

OceanBase is actively empowering its partner ecosystem by:

  • Providing comprehensive training: Offering training programs to help partners develop expertise in OceanBase solutions.

  • Offering technical support and resources: Providing partners with access to technical support teams and documentation.

  • Developing joint marketing programs: Collaborating with partners on marketing initiatives to reach new customers.

  • Introducing attractive incentive programs: Offering lucrative incentives to encourage partners to promote and sell OceanBase solutions.

5. What are OceanBase's main areas of focus for future growth?

OceanBase's future growth strategy is centered around:

  • Continued innovation in database technology: Investing in research and development to stay ahead of the curve in database technology.

  • Expansion of its public cloud offering: Growing its global footprint and expanding its public cloud services to cater to a wider range of customers.

  • Deepening its partner ecosystem: Building stronger relationships with partners and empowering them to drive sales and deliver exceptional service.

  • Entering new markets: Exploring new industry verticals and geographical regions to further expand its reach.

6. What are the key challenges that OceanBase faces in its quest for global dominance?

OceanBase faces several challenges in its bid to become a dominant player in the global database market:

  • Intense competition from established players: The database market is highly competitive, with established players like Oracle, IBM, and Microsoft vying for market share.

  • Navigating regulatory and data privacy concerns: Operating in a global market requires navigating complex regulatory landscapes and data privacy concerns.

  • Building brand recognition and trust: As a relatively new player, OceanBase needs to establish brand recognition and build trust among potential customers.

Conclusion

OceanBase has emerged as a powerful force in the database world, driven by its innovative dual-engine strategy and its commitment to building a robust partner ecosystem. The company's ambitious plans for global dominance, coupled with its focus on innovation and customer satisfaction, position OceanBase for continued success in the years to come. While challenges remain, OceanBase's unwavering dedication to excellence and its ability to adapt to the ever-evolving technology landscape make it a formidable contender in the global database market. The future looks bright for OceanBase as it continues to disrupt the industry and deliver cutting-edge solutions to businesses around the world.