The truth about Oracle HW revenue

It is always interesting to me how Sun apologists post nonsense like the recent lie that the HW division is some cash printing press, and that the HW employees deserve kuds - all at a time leading up to layoff season. Do these folks actually believe they can get that message into Oracle management, thus preventing themselves from being laid off?

Anyway - let's look at the truth of Oracle's $$ numbers and call BS once and for all about the cretins who post that nonsense.

Of the $31B in HW revenue since Sun's acquisition - about 70% of that came in the first 5 years after the acquisition. The last 5 years was anemic in comparison, due to the continued shrinkage of that business
Up until the last quarter of FY17 Oracle reported both HW and HW support $$. Originally after the acquisition the support revenue was approximately %50 of the HW revenue annually. As hardware revenue decreased annually until 2017 (and due to Oracle support cost hikes) the HW revenue became so embarrassingly low that annual support revenues close to surpassing HW.
Oracle stopped breaking out HW and HW support costs in Q4 FY17 because the HW numbers were so unbelievably bad. At that point in time annual HW revenue was only %40 of what it had been at the time of acquisition. For the math challenged HW employees out there that means it was way less than half of what it was at the time of acquisition
Assuming that HW revenue is still %50 of total (HW + Support) revenue today (a charitable estimate given the trend from 2011 - 2017 where support was beginning to eclipse HW), annual HW revenue today is approximately %25 to 30% compared to the time of acquisition
Given that the Oracle HW revenue trend is that it shrinks by roughly half every 5 years, that means that every 5 years we can expect to see the number of HW employees reduced by the same amount. Continued HW layoffs are a given.

So, the reality of the HW situation is tough. It's bad. For shareholders the hardware problem is an issue that can only be addressed by growing revenue in other product lines. Nobody in Oracle management, and I mean nobody, sees HW as anything other than a dying business.

Finally, where to the above $$ financial numbers come from? From Oracle's publicly available financial reporting. If you want to understand this better yourself, go read them. If you work in Oracle's HW org then read them and weep, or better yet leave while you still can. You're not viewed as a long-term asset to the company.

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Apparently Hardware grew 96% in Q3, and had its largest Q3 in 6 years!

The above is a an out-and-out lie from either a zippy in the HW org, or a troll.

Q3 FY22 HW rev: 798K (combined hw and support)
Q3 FY21 HW rev: 820K (combined hw and support)

Q3 was the lowest HW Q3 EVER since the acquisition of the POS.

Customers buying one last time after Fujitsu announced the end of sale for their SPARC hardware.

Apparently Hardware grew 96% in Q3, and had its largest Q3 in 6 years!

Pulling their weight!

time to take the hw bu out behind the woodshed and put it out of its misery.

Mention of netsuite below. Remember there’s a lawsuit because sales and marketing is inventing features it doesn’t have just to sell it. The customers find out later that the features they were told were there don’t exist. And development has no idea how to add them!

Wish I could find an upside. I’m discouraged. It’s really sad to see things as they are. Only hope major reset of business model. Market Watch & other financial publications continue to put a positive spin when stock dips. Not easy to grasp what was is no longer.
NetSuite maybe but too expensive for that market. Much more affordable for small business to contract w/ accounting firm. There is not enough money in Cloud to carry the company as is. HW is ancient history. Cerner was already in trouble, another dinosaur that needed updating. Expensive trying to force entrance into healthcare through an emergency exit. Hospitality is a joke. Hotel brands compare and test vendors for franchise approval. Competition is better. Things are changing faster now than ever & unfortunately Oracle seems to be stuck in the past. The arrogance, ego & treatment of employeees, mgmt is self destructing, they don’t understand that people are important.
It will take major changes, new blood & vision for Oracle to live up to the name it once had. The money machine has too much debt and top heavy w/ expenses.

Investor not an employee I’m sick of losing my money

I'm curious. Where in the product/services portfolio do you see the most upside?

Investor not an employee
I’m sick of losing my money

OMG, EPIC MELTDOWN!!

Seems like someone really struck a nerve. Here's a constructive suggestion. Ever thought about redirecting your energy to finding a job somewhere else???

These folks who continue to spout about the viability of the hardware are either sun long-timers who never got past the fall of their beloved company, or are inexperienced "class of" or OD recruits who are sweating things big time. So inane.

“These folks …” ????
….. maybe you should read ALL comments before spouting so that you do not appear to be the one that is inane…and you will find that the comments started with facts from the notes to audited Financial Statements… which publicly traded companies are required to make available. There are employees and investors posting here and apparently management which you might be one of the inane dead-beat lazy over-paid VP bullies that could be cause of what was a great company to falling Accountability seems to be missing at the VP level.
Hopefully someone will read all these comments and possibly someone higher up will make much needed changes. There is much value from “the folks” that do the work. It is easy to discover that the problem is with “the folks” at the VP level where there is an unusual amount of employee bullying.
Someone recorded the name calling after a recent conference call when employees were thought to have exited the call, one employee had not left. .

Laughing at and calling employees names such as stupid, etc is unacceptable. HR needs to investigate before the employment attorneys subpoena - this mess and many other messes have to be cleaned up.
Follow the money and answers will be found.
Seems that getting rid of the dead-beat VP’s making too much money for doing nothing while holding back pay increases and bonuses from those that do the work while violating HR procedures, taking employees ideas,
& receiving credit for employee hard work for self promotion is abuse. Not to mention it is at the VP level were one boasts about world travel and number of countries on the company’s dime while investors are losing money. It’s hard to read on social media that the well traveled VP takes such extravagant bi monthly personal vacations from points earned from Oracle business travel. VP abusing the company while others are not getting back what they have worked for or invested in should not be possible. The grounds to fire VP’s are clear. Clean up this mess. Read the comments and you will see that many don’t believe Oracle will get rid of the VPs that have hurt them and their families. This would be a gold mine for a good employment attorney.
VP Self indulgence is blatant. Time to trim the fat. Cut costs. Investors are losing money. VP salary expense would a good place to start the much needed cutbacks, the next layoff. Investors and customers want to know that Oracle cares, that Oracle supports hard working employees and that they are treated fairly. Investors want to see a change in management style. Do the right thing. Get rid of the untouchables that are responsible for causing financial pain on many levels, milking the company for personal gain. VP job cuts first. Stock would go up.

I don't know if it's because orahole was ja--ing up HW support costs, or simply because sales kept diving. Neither would surprise me.

Would you purchase support from Oracle if you could avoid doing so? Why would you purchase ANYTHING from Oracle if you could help it?

OP - you missed some stuff. At first, HW accounted for about 2X support $. Over time that dropped to even and then slightly below. I don't know if it's because orahole was ja--ing up HW support costs, or simply because sales kept diving. Neither would surprise me.

"It is always interesting to me how Oracle apologists get triggered by anything suggesting that the HW business is good enough for Larry to not sell it to Fujitsu. "

I don't have a stake in whether LE sells off the HW biz or not. He's a dinosaur in an industry that has passed him by and the eventual demise of his baby, at least in its current form, is inevitable. Also not sure how the presentation of publicly available financials in contrast to the misleading statement that HW is somehow a money printing machine is an example of being "triggered". That is unless you are someone who is only comfortable with "alternative facts" or just wants to troll away.

It is always interesting to me how Oracle apologists get triggered by anything suggesting that the HW business is good enough for Larry to not sell it to Fujitsu. What does he know that you don’t?

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The truth about Oracle HW revenue

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