Just a footnote to say that the golden goose still generates fat profits for ORCL and is destined to for many years to come. The Sun business is a license to print money.
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$1.2b profit for the 6 months ended November. This hardware business is funding your merit increase.
Seems Catz doesn’t think much of the Oracle HW business either. Curiously, she does not use the terms “golden goose”, “cash cow”, “like printing cash”, etc... perhaps the sun hangers-on can explain the difference between her reality and theirs.
From Reuter’s
Revenue from Oracle’s shrinking hardware business was down 11% this quarter to $994 million.
“Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly, while we downsize our low-margin legacy hardware business,” Catz said.
“low margin” and “legacy”... doesn’t exactly inspire the warm fuzzies
“Gotta love the trolls who post here. First they claim that the HW business makes no profit. When they are proven wrong they move the goal posts. Trolls gonna troll. It;s OK. We get it, you hate Oracle.”
I don’t hate oracle, but I don’t love all the mediocre employees we inherited through the sun acquisition. It’s amazing how out of touch with reality they are - their business has DECLINED by about 10% annually for the last 5 years. The steady decrease speaks to customers going elsewhere for hardware, proving they can’t compete in any sustainable fashion. LE has articulated this and the numbers bear it out. Case closed, and we can count on continued 10% annual reductions in HW employees as a result. And that folks, is why the HW folks hang around this MB.
So now let’s hear them bang the profitability drum some more as they go whistling past the graveyard. Meanwhile, slowly but surely the “sun problem” is solving itself.
Gotta love the trolls who post here. First they claim that the HW business makes no profit. When they are proven wrong they move the goal posts. Trolls gonna troll.
It;s OK. We get it, you hate Oracle.
The whole point of a cash cow is to keep expenses as low as possible,
to maximize profit. Cash cows don't go on hiring sprees.
Seems like Apple, AWS and others aren’t aware of your genius business plan for cash cows.
More of a declining cash cow, or a cash cow with terminal cancer
I would think Larry couldn’t hire new employees into the HW biz fast enough.
The whole point of a cash cow is to keep expenses as low as possible, to maximize profit. Cash cows don't go on hiring sprees.
What I’m still trying to figure out is given the thriving, healthy hardware business that is practically “printing cash”, why are so many hardware employees spending so much time on the oracle lay-off site? I would think Larry couldn’t hire new employees into the HW biz fast enough. What am I missing?? Why are they so worried and defensive?
I work out of the NYC Park Ave office (not in a hardware role thankfully) and the answer to this should be obvious. Hardware reps and the hardware org as a whole are not making their targets/goals. This has been consistently happening for years, but this year with the pandemic it is far worse than previously. Layoffs are happening consistently across hardware sales, support, product management/marketing, engineering, and manufacturing.
Impossible-to-reach targets are assigned and missed, and more layoffs ensue. Rinse and repeat. I think Sun’s hardware biz used to be 10X what it is now. That business is dying.
What I’m still trying to figure out is given the thriving, healthy hardware business that is practically “printing cash”, why are so many hardware employees spending so much time on the oracle lay-off site? I would think Larry couldn’t hire new employees into the HW biz fast enough. What am I missing?? Why are they so worried and defensive?
What’s Q1 and Q2 been?
Took a look. Pretty much the same. Hardware generates an annual operating profit of over $2B
Down vote this all you want. It doesn't change anything.
What’s Q1 and Q2 been? What have the yoy #s been?
yet all these dummies down vote this point. now they know where their RSUs and bonus comes from.
Do we have an evidence that ORCL made $2.3b profit from HW business Last FY?
Well, from the August 10K quarterly statement, page 4, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS:
HW revenue: $814M
HW Operating costs: $246M
Profit: $568M
times 4 = $2.272B, which is over 20% of O's profit. Will it grow? No, it wont. But it generates a lot of profit, thus it is a cash cow.
Do we have an evidence that ORCL made $2.3b profit from HW business Last FY?
“he no longer cares about it”.
I'm sure that he cares a great deal about the profit it generates, year after year.
Ellison has acknowledged publicly that the HW business has been in decline and that “he no longer cares about it”. Oracle customers know this and as a result are making their HW acquisitions through other suppliers.
Let’s see the year over year decline in HW revenue over the last 5 years, since that’s the actual direction that business is headed, instead of throwing these ridiculous numbers around.
Pathetic that these hardware guys feel the need to defend their products as they sweat it out on this lay-off site. Reeks of desperation.
Don't forget about the windfall gain that is soon going to land in Oracle's pocket. Google is going to pay Big 0 atleast 20B$
99% of which was “sold” into its own cloud data centers. All funny money.