PostgreSQL is a viable alternative to Oracle – here is why…

Why pay $100,000 for something you can achieve in $5,000? That’s the main question. 

Oracle is a long-standing giant in the DBMS world, offering a feature-rich platform but at a steep price, often catering to large enterprises with extensive budgets. PostgreSQL, on the other hand, is open source with a liberal license and zero licensing fees. It has grown significantly in popularity due to its reliability, scalability, performance, and ease of use.

The figure below charts the popularity of PostgreSQL and Oracle over 5 years using Stackoverflow’s annual developer surveys.

Let’s start off with 5 household names that chose to use PostgreSQL for their critical data: 

1. Instagram

Instagram’s use of PostgreSQL was highlighted in its early days, particularly during its rapid growth phase. Engineers discussed how PostgreSQL supported their needs during critical scaling moments. 

Read more here: https://read.engineerscodex.com/p/how-instagram-scaled-to-14-million 

2. Spotify

Spotify’s engineering team has shared insights on their usage of PostgreSQL for critical backend services. They leverage PostgreSQL’s flexibility and performance to manage large amounts of user data and playlist information.

Read more: https://engineering.atspotify.com/2013/02/in-praise-of-boring-technology/ 

3. Mastercard

There are some things that money can’t buy; for everything else, there’s Mastercard … with help from PostgreSQL. Mastercard understandably has extreme uptime requirements, with the minimum being 5 nines of availability. This is achieved with the help of logical replication and multi-master architecture. 

Read more: https://www.enterprisedb.com/resources/customer-story/why-mastercards-secret-zero-downtime-is-postgres 

4. IMDB

The Internet Movie DataBase has been around since 1990 and currently contains nearly 6 million movie titles and over 100 million entries. But it’s also a huge community of people evaluating and discussing films. This is a giant amount of data and a lot of it is processed in PostgreSQL.

Read more: https://learnsql.com/blog/companies-that-use-postgresql-in-business/#imdb 

5. BMW

BMW utilizes PostgreSQL to manage manufacturing processes, supply chain data, and customer-centric operations. With PostgreSQL’s high availability and robust failover capabilities, BMW ensures that its critical systems remain reliable and performant.

Read more: https://www.cybertec-postgresql.com/en/postgresql-overview/solutions-who-uses-postgresql/ 

Now let’s examine how PostgreSQL meets the needs of modern businesses while being more financially viable than Oracle. We will cover the following topics: 

  1. Costs
  2. Reliability
  3. Scalability
  4. Performance
  5. Security
  6. Extensibility
  7. Support
  8. Pedigree

1. Costs: Controlling expenses in an uncertain economy

One of the most striking differences between PostgreSQL and Oracle lies in their cost structures. While PostgreSQL is open-source and free to use with a liberal license, Oracle operates on a commercial licensing model that often involves significant upfront investments and recurring costs.

PostgreSQL

Oracle Standard Edition

Oracle Enterprise Edition

Database license

$ 0

$17,500

$47,500

Clustering

$ 0

Not Available

$23,000

Partitioning

$ 0

Not Available

$11,500

Advanced Security

$ 0

Not Available

$15,000

Updates & Support

$ 5000

$3,850

$10,450

Total Cost

$ 5000

$21,350

$107,450

* Using Oracle’s list price available here and indicative pricing of PostgreSQL vendors

Upfront Costs

PostgreSQL is completely free – there is no licensing fee, no mandatory support costs, and no vendor lock-in. This is a significant advantage, particularly in times of economic uncertainty where enterprises need to control their costs. Oracle, on the other hand, requires expensive licenses based on the number of users, processors, or instances, which can quickly add up to prohibitive numbers, especially when organizations need to scale.

Total Cost of Ownership (TCO)

When considering the total cost of ownership, PostgreSQL outperforms Oracle across the board. Oracle’s licensing fees are just the beginning – maintenance, upgrades, and support add further costs. PostgreSQL, being open-source, has zero licensing costs and offers flexibility in terms of support. Organizations can choose from a range of vendors without being locked into one.

Long-Term Financial Impact

Choosing PostgreSQL can lead to significant savings over time. Without the hefty annual fees associated with Oracle, companies can redirect resources to other areas like development, innovation, or customer experience. Additionally, PostgreSQL’s flexibility and extensibility allow companies to build the exact solutions they need without purchasing additional costly Oracle modules.

Hidden Costs in Oracle’s Ecosystem

Oracle’s ecosystem is notorious for hidden costs. Add-ons, extensions, and additional services can easily inflate your database budget. In contrast, PostgreSQL offers a vast array of powerful extensions at no cost. Whether you need geographic information system (GIS) capabilities, time-series data management, or full-text search, PostgreSQL’s open-source model delivers advanced functionality without breaking the bank.

2. Reliability: Stability and proven pedigree

Reliability is a key consideration when choosing a DBMS, especially for mission-critical applications. Both PostgreSQL and Oracle have a long history of stable releases, yet PostgreSQL’s development model offers unique advantages.

Battle-Tested and Mature

PostgreSQL has been in active development since 1986, and its codebase has been continuously refined by a global community of contributors. The result is a database system that is robust, stable, and capable of handling high-stakes deployments. Oracle, too, has a long history. At times, however, its proprietary nature means that corporate strategy dictates updates and improvements more than user needs.

Mission-Critical Deployments

PostgreSQL has proven its reliability in mission-critical deployments across industries. From financial institutions handling millions of transactions daily to government agencies managing sensitive data, PostgreSQL’s ACID compliance ensures data integrity and consistency. While Oracle is often used in similar environments, PostgreSQL offers comparable reliability without the cost burden.

Data Integrity and ACID Compliance

Both databases are fully ACID-compliant, but PostgreSQL’s commitment to stability and its “get it right the first time” philosophy makes it a reliable choice for enterprises that cannot afford downtime or data corruption. PostgreSQL’s transaction control, consistency, and fault tolerance are on par with, if not superior to, what Oracle offers.

3. Scalability: Handling data growth as the business grows

As businesses grow, so do their data needs. The ability to scale seamlessly is essential for any DBMS, and both PostgreSQL and Oracle have built-in features as well as ecosystem tools that support scalability. However, PostgreSQL’s open architecture gives it the edge in many scenarios.

Horizontal and Vertical Scaling

PostgreSQL supports both vertical scaling (adding more resources to a single server) and horizontal scaling (adding more servers to distribute the load). It has native replication capabilities and supports sharding through built-in features and extensions. While Oracle offers similar capabilities, implementing and maintaining these solutions often comes at a high cost, with expensive clustering options and additional fees for advanced features.

Distributed Architecture

In a world where distributed databases are becoming the norm, PostgreSQL is well-positioned. With features like logical replication, foreign data wrappers (FDWs), and advanced partitioning, PostgreSQL can easily handle geographically distributed data while maintaining consistency and performance. Oracle also supports distributed systems, but typically requires a significant financial and technical investment to do so effectively.

4. Performance: Efficient management of high velocity data

Performance is a critical metric when evaluating a database. While Oracle is often perceived as the go-to for high-performance applications, PostgreSQL has made significant strides and is now considered on par with – or even superior to – Oracle in many scenarios.

Query Optimization

PostgreSQL’s query planner and optimizer are designed to handle complex queries efficiently. The database engine analyzes and chooses the most efficient execution plan, allowing it to deliver high performance even with large datasets. Oracle’s cost-based optimizer is powerful, but it often requires extensive tuning and proprietary tools, adding to the complexity and cost.

Performance Benchmarks

Independent benchmark studies show that PostgreSQL delivers comparable – if not better – performance than Oracle in many scenarios. Whether it’s handling complex analytical queries or processing high volumes of transactions, PostgreSQL’s performance continues to improve with each release, thanks to its active development community.

Data Indexing and Partitioning

PostgreSQL offers advanced indexing options like B-tree, GiST, GIN, and BRIN, which allow for optimized query performance depending on the use case. Partitioning in PostgreSQL has also evolved, now supporting declarative partitioning that simplifies managing large datasets. While Oracle’s indexing and partitioning features are robust, they are often gated behind additional licenses or require specialized skills to manage effectively.

Concurrency and Parallelism

PostgreSQL’s Multiversion Concurrency Control (MVCC) ensures that multiple transactions can be processed concurrently without locking each other out. This approach minimizes deadlocks and ensures a smooth user experience even under heavy loads. Oracle also supports high concurrency but relies heavily on fine-tuning and configuration, which can be both time-consuming and costly.

5. Security: Protecting your data in transit and at rest

In an era of increasing data breaches and regulatory requirements, security is paramount. Both PostgreSQL and Oracle offer a range of security features, but PostgreSQL’s approach is more flexible and transparent. 

Built-In Security Features

PostgreSQL provides robust security mechanisms, including role-based access control (RBAC), SSL/TLS encryption, and row-level security (RLS). These features allow organizations to implement granular access controls and ensure that sensitive data is protected at all levels. Oracle offers similar features, but they often require additional configuration and come with associated costs.

Compliance and Certifications

PostgreSQL is used in industries where regulatory compliance is critical, such as finance, healthcare, and government. The database meets industry standards like HIPAA, GDPR, and PCI DSS, making it suitable for handling sensitive data. Oracle also meets these standards, but the cost of implementation and maintenance is typically higher.

Community-Driven Security Improvements

One of PostgreSQL’s strengths lies in its open-source community, which is quick to address security vulnerabilities and release patches. The transparency of the open-source model means that security fixes are available to everyone immediately, without the need for costly support contracts. Oracle’s proprietary model, in contrast, often results in slower responses to security issues, and patches are typically tied to expensive support agreements.

6. Extensibility and Customization

The ability to extend and customize a database to meet specific needs is extremely powerful and should be a key consideration for any organization handling critical data. PostgreSQL’s open architecture and rich ecosystem of extensions make it a leader in this area.

Flexible and Modular Architecture

PostgreSQL’s architecture is highly modular, allowing for seamless integration of extensions and customizations. Whether you need to add new data types, implement custom functions, or integrate with third-party tools, PostgreSQL makes it easy. Oracle, being a closed system, limits this flexibility, often requiring businesses to work within predefined constraints or purchase additional modules.

Open vs Closed

Oracle’s closed ecosystem means that any customizations are often limited to what Oracle supports or offers. For organizations that require specific functionality not available out-of-the-box, this can be a significant limitation. In contrast, PostgreSQL’s open-source nature encourages innovation and allows businesses to tailor the database to their exact needs. The is reflected in PostgreSQL’s vast ecosystem of 3rd party extensions and tools. 

Advanced Extensions

PostgreSQL’s ecosystem includes powerful extensions like PostGIS for spatial data, TimescaleDB for time-series data, and Citus for distributed databases. These extensions are free and widely used across industries, providing functionality that rivals or exceeds what is available in Oracle’s paid modules.

Developer Ecosystem

PostgreSQL’s developer community is one of its greatest assets. Thousands of developers around the world contribute to the codebase, create extensions, and provide support. This vibrant ecosystem fosters innovation and ensures that PostgreSQL remains at the cutting edge of database technology. Oracle’s developer community, while strong, is largely driven by Oracle itself, limiting the diversity of available solutions.

7. Community and Support

The support and community behind a database can make a significant difference in how quickly issues are resolved and how easy it is to learn and implement new features.

Vibrant Open-Source Community

PostgreSQL’s community is one of the largest and most active in the open-source world. With regular conferences, forums, and mailing lists, PostgreSQL users have access to a wealth of knowledge and support at no cost. This contrasts sharply with Oracle’s centralized support model, where most support options are tied to expensive service agreements.

Documentation and Learning Resources

The PostgreSQL community provides extensive and well-maintained documentation, making it easy to get started and troubleshoot issues. Additionally, countless free tutorials, courses, and guides are available online. Oracle’s documentation is comprehensive but often tied to proprietary tools and features, making it less accessible to those who are not already invested in the Oracle ecosystem.

Support Models

For organizations that require professional support, PostgreSQL offers a wide range of options, from small consulting firms to large enterprises specializing in PostgreSQL solutions. This diversity allows organizations to choose the level of support that fits their needs and budget. Oracle, in contrast, primarily offers support through its own channels, which are often expensive and inflexible.

8. PostgreSQL’s Pedigree: Proven Success Across Industries

PostgreSQL has been in development for multiple decades, but its growth in recent years is the true testament to its reliability, scalability, and performance. Organizations across industries are increasingly choosing PostgreSQL over Oracle, driven by a desire for flexibility, cost savings, and control over their data.

Real-World Adoption

PostgreSQL is used by some of the world’s leading companies, some examples have been shared earlier in this article. Its adoption spans diverse industries, from finance and healthcare to technology and government. This broad usage underscores PostgreSQL’s versatility and its ability to meet the needs of organizations both large and small.

Innovation and Roadmap

The PostgreSQL community is continuously innovating, with new features and improvements released regularly. The open-source nature of the project ensures that these advancements are driven by real-world needs and contributions from a global network of developers. Oracle, while innovative, is limited by its corporate roadmap and the priorities set by Oracle’s leadership.

Success Stories

Several organizations have successfully migrated from Oracle to PostgreSQL, citing lower costs, increased flexibility, and better performance. For example, the U.S. federal government, which once relied heavily on Oracle, has shifted many of its critical systems to PostgreSQL, saving millions in licensing fees. Similarly, global tech giants like Spotify and Instagram have built their platforms on PostgreSQL, highlighting its ability to handle high-traffic applications.

Conclusion

I’ll repeat what I said in the beginning: Why pay $100,000 for something you can achieve for $5,000?

PostgreSQL offers several key advantages over Oracle across a range of criteria. PostgreSQL’s open-source nature provides a significant cost advantage, allowing organizations to divest their investment elsewhere. Its reliability, scalability, and performance are on par with Oracle, making it a viable choice for mission-critical applications.

Security and extensibility are also areas where PostgreSQL shines, thanks to its transparent development process and a vast ecosystem of extensions. The vibrant community and wealth of free resources make PostgreSQL easier to learn, implement, and maintain, even for organizations with limited budgets.

While Oracle remains a powerful database system with a rich feature set, its high costs and proprietary nature make it less appealing for organizations seeking flexibility and cost-effectiveness. As more companies recognize the benefits of open-source software, PostgreSQL’s adoption continues to grow, establishing it as a leading choice for modern data management.

For organizations evaluating their database options, PostgreSQL presents a compelling case as a reliable, scalable, and cost-effective alternative to Oracle. Whether you’re a startup looking to scale or an enterprise seeking to reduce costs, PostgreSQL provides the tools and flexibility needed to succeed in today’s data-driven world.

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