We seem to agree that oracle code is junk (doesn't work in the SaaS world) and that it's generating cloud revenues by converting existing support revenues (from on-prem licenses) into cloud revenues and backlog (e.g. ATT deal), but that cannot last for ever. So far overall revenues have been flat, when dontotao revenues start to decline? Especially as they lay off field sales reps June 1.
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Customers, employees, or both ?
Everyone is trying to get out.
So oracle's Cloud revenge strategy is a combination of coercing customers through audits and converting existing on-prem support revenue to cloud revenue. Anyone still wondering why AWS, MSFT, and SFDC are crushing oracle on the cloud?
If you're a sales rep, you're only getting 80 percent credit for on-prem but for cloud you are getting 2x. Every dollar you can convert to cloud is 2.5x more money in your pocket plus you hit you accelerators so it is even more.
Also, the individuals who approve deals are more likely to approve discounts if cloud is included. Just think about that. If you want to discount something by taking 80 percent off, you will probably be told no. If you take it 90 percent off and take that other 10 percent and allocate it to cloud, you will probably be told yes.
This means, reps and those in the approval chain are incentivized to push cloud even if the customer doesn't need or want it, but if you throw it in for free or worse, make it cheaper with cloud than without, the customer has no choice.
Some other techniques at play are audits and being out of compliance. You're only get out of jail free card is by taking the deal with cloud in it. Or if you want to cancel support but can't due to how the products were packaged and sold, it is your only chance at deal relief.
Customers are putting the products on the shelf where they gather dust or they try them and then complain about how terrible they are.
Oracle products and supports have been going down hill in past 10 years. That's bad. Now sales trying to threaten customers to convert on-prem Oracle products to their silly Oracle Cloud by manipulating Oracle licensing. We are all human and do not like to be told what to do. Moving to different vendors in any possible ways. Once left, Oracle will never see the customers anymore even they go begging. So, Oracle is crashing .. burn to follow. "Oracle executives" constantly sending emails .. delete bins are all they belong. If you are one of those Oracle exec, find a new meaningful job. No one going to buy expensive and confusing products with emails or phone calls. Oracle is a company difficult to deal with.
Hamidou said on a concall about a year ago that we need to start selling cloud instead of giving it away. We would sell it and then a customer would complain and ask for their money back when it didn't work. Sales is not the problem, engineering is.