OCI is woefully underfunded, and their nearest competitors, Google and Microsoft, outspend Oracle 11 to 1 on infrastructure. (Look at capex in the earnings reports.) They need to spend $28 bil on data centers and network capabilities to be competitive, but instead, they’re spending that much to acquire Cerner. Oracle sees that customers are moving away from the database and OCI and are going all in on SaaS. Not that this is a surprise, but before investing in OCI or database software, keep in mind that investments there will continue to decline.
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A lot of Cerner employees will be made redundant because their roles are superfluous, duplicated, or automated. It will become a very profitable unit.
Should have spent some of that money on infrastructure,
In my 8 years at Oracle, the one constant that flowed through my entire time there is that they would cheap out on everything. If it took $2MM to do something properly, they would do it for $750M.
For heaven's sake DO NOT buy a house from those guys.
remember the N1 Cloud?
I do and it really didn't get much passed proof of concept stage. but there was another product called SunCloud. It was in Alpha and it worked. It didn't have much for automation but in about 4 hours you could have had running cloud with console. I tested it and it worked extremely well. And yes, it was that easy to set up. You just needed three system to get started. So what did the execs at Sun do? They canceled it. Same for Sun Linux. And yes, Sun had their own, built from the ground up Linux. I tested it too, it was very well done, had all of the Sun and linux specific tools and was fast. Until the x86 Solaris group complained, and Poof! just like that, it was gone.
Wonderful management decisions. Don't get me started on Terraspring, Centerrun, HighPoint, Nauticus Kobalt Thnking Machine or Encore.
SUNW was what Buffet calls a "cigar-bu-t company", a company with one puff of smoke left before it's thrown in the dumpster. "Just think what it could have been with a Sun cloud" -- you don't need to dream, Sun did it - remember the N1 Cloud? And it didn't save SUNW from the vultures.
LOL, spot on! it's been a long time since I thought about N1 (SUNW thoughts are better left purged). Remember Terraspring? Seems there was another acquisition Sun made in there around the same time - something to do with HP maybe? So yes, Sun had already tried and failed miserably in its efforts to get into cloud - to the tune of hundreds of millions of dollars.
SUNW was what Buffet calls a "cigar-bu-t company", a company with one puff of smoke left before it's thrown in the dumpster.
"Just think what it could have been with a Sun cloud" -- you don't need to dream, Sun did it - remember the N1 Cloud? And it didn't save SUNW from the vultures.
There's no question that Oracle is going to jettison the hw div with the revenues shrinking like that. Would result in a great stock bump for Larry.
They down vote it, but they have no explanation.
It's always fun when the sun apologists show up.
Not sure who "they" are, but anyone with a clue knows that hardware revenue has been in a state of constant decline ever since the acquisition of the boat anchor. So you know, because you asked for an explanation, constant decline means it is slowly but surely heading toward zero. nada. goose-egg.
The proof is here --- https://investor.oracle.com/financials
This has been explained on this board so many times before, but you aren't keeping up so I'll give you some help. Go to the above link. These are Oracles financial results. Next, look at hardware revenue for any quarter. It's very plainly shown and you don't have to know anything about finance to find it (I bet even YOU can). Then look at the same quarter from the previous year. Finally, compare the two numbers. See? it's easy. It is always around a 10% year-over-year decline, melting away, quarter after quarter after quarter. Drip, drip, drip.
They down vote it, but they have no explanation.
They just don’t like it!
If Hardware is such a drag, then what did their Sc’s get more than twice the attainment bonus of the cloud SC’s?
If the hardware biz is such a drag, why hasn’t O sold it off? Such a weight on the balance sheet would require that, wouldn’t you say?
So you're saying the "how it could have been" is a picture of bliss, with a Sun boat-anchor chained to your ankle?! um, no - duh.
Just think how it could have been. O not wasting the Sun tech they bought 10 years ago trying to create a new market for big iron. Instead building DCs on the Sun kit, using it themselves, pairing it with DBs, etc and selling that to their customers as a value add with consulting, data management and all the rest. The anti-OCI that people would actually want and pay for.
There is something to be said for creating from scratch vs buying your way to “profitability”. Of all the hundreds of companies they have bought which ones really have contributed to the bottom line? Hospitality, small biz cloud, maybe Sun?
At $73 billion in debt, doesn't seem like Oracle will suddenly start spending to prop up OCI.
Is OCI one of those areas that are supposed to "melt away"?
Should have spent some of that money on infrastructure, LE, instead of propping up the stock.