10% of North American Cloud will be laid off in February. Consider yourself warned.
17 replies (most recent on top)
Totally agree : @lyw+1kyWNILO
Not being negative, it is reality.
And as you said. They are moving in a business direction.
Oracle is being rebranded to healthcare.
Ask yourself if you were going cloud would you go with AWS and Azure or OCI?
Why don't you ask, say, Uber why they moved to OCI?
The bottom line is really simple. If cloud revenue were really growing at a rate they wanted to showcase, they would break cloud revenue out from the rest to show everyone how great it is. The only reason to lump it in with anything else is to hide it. That's what they are doing; they need to hide the real revenue of oracle cloud.
Simple as that.
I think there are some current Oracle employees here with their heads in the sand. All I know is that I worked with countless Oracle customers and OCI was a non-starter. Many didn’t even want Oracle in their company anymore. Still have to get past that and it’s much too late. The only customers with Oracle are those who can’t get rid of them yet. The database will be a seller and especially for companies deep in technical debt with Oracle but most are moving away. In time, even the database won’t have much of a market and it’s why Larry likely bought Cerner. If the only deployments are Oracle mainly ding it’s cloud it’s going to reduce any growth. They got a slice or included on that government contract but it primarily will likely be for database where needed. Ask yourself if you were going cloud would you go with AWS and Azure or OCI?
Cerner is the new shiny precious so I could see NACT getting its share of the pie cut down, just like when it was the new shiny precious and other BUs got cut and slashed.
The question how long before the new precious in Cerner loses its luster?
And it is still very telling that the revenue for OCI is still buried in the numbers.
I don't know nor try to spend the time to understand whether there is any change in how they combine / report license & cloud revenue. But highly unlikely that license revenue will grow as quickly as the reported growth rate in Q2 to make cloud revenue actually not grow at all - unless someone know and say that it is the revenue growth of oracle license in Azure and AWS (which is possible, but then it also mean people are still using Oracle database) or due to Oracle raising price ??
My understanding has been that the official numbers lump cloud revenue and license revenue together. They have never officially disclosed what cloud revenue actually is. They then do some hand waving about it in a non-official way so there is no way to really tell. Has that changed?
Smart people, so where does those Cloud revenue comes from ? lol. Does customer consume or not consume any services ? If they don't consume, then how does Oracle report/recognize any revenue ? I don't care how Oracle ties software and cloud services together (also who does not, are you sure SAP does not do that ?) to seal a deal or give big discount. If the customer does not consume and pay anything for cloud services at all, Oracle CANNOT recognize the revenue.
I question if you actually work at Oracle? Learn accounting? I guess you were not familiar with throwing in cloud deals to reduce support and maintenance? I know of several companies that flat out said they did not want or need it but did it to get a better deal and did not consume. I guess you are not aware of Oracle putting the emphasis on consumption not the sale of OCI. Customers were not using it because they were AWS and Azure first and second. I guess you are also not aware of the minuscule market share.
NACT is North American Cloud and Technology
It is interesting that people keep saying there is no demand for Oracle Cloud Service. Yes, it is definitely a tiny player compared to AWS, Azure and GCP, no questions about it. But are you saying that Oracle cooks the book and reports fake growth and number in its financial statement ? If yes, anyone can report to SEC ? and if you say companies just sign deal and consume absolute zero of the cloud services, you know that company cannot fully recognize the revenue right ? if not, please help yourself and learn accounting 101.
Granted OCI is not a big player but it’s going well at the moment.
Excellent. Big layoffs always improve shareholder value.
I stated before given the reality of demand for OCI - which is not much unless they have to and even then most don't use it - there will be major layoffs eventually. I think by this Summer that area will get hit hard. I would not be surprised is 50% is let go over phases. Eventually, the applications areas will get hit more too. I am not trying to be negative but it is going to be given business direction. More focus will be on Cerner but they don't need everybody there. Because you knew ERP means nothing to health care. I would not also not be surprised to see areas like GBUs being divested. Even when I was there they were cutting USA resources for India getting rid of key people who knew the applications.
Can someone define NACT? What types of roles/technologies does that include?
What's your source? Are you implying 10% of OCI?
- 253% of janitor positions will be cut. Consider yourself warned.
Seriously, they might go for it or maybe not. At this point nobody knows.