Thread regarding Oracle Corp. layoffs

Oracle doesn't have a Cloud at all

For quite a while, Oracle's playbook has been about being a slow follower until a market is proven out and then making acquisitions of key companies to capture marketshare and to establish a presence. For example, buying PeopleSoft or Siebel made Oracle immediately relevant in HR and CRM while lining up customers to potentially buy more of their software from Oracle.

That strategy doesn't work in Cloud because Oracle can't buy its way into the market -- all the players have significantly higher valuations than Oracle. It shows in its current strategy of trying to slow Cloud adoption (raising DB license costs for running on AWS/Azure and pushing hard for on-premise deployments of its own hardware), in limiting choice (refusing to allow licensing of the database for Google, IBM, etc. and pushing all Apps customers to Oracle Cloud) and in strongarming customers (financially engineering deals). The reliance on a slow follower approach has limited Oracle's opportunity to, at best, being able to host its database and Apps customers.

As a result, Oracle's ability to grow and to obtain more profit/cash flow is severely limited. Given that its stock price is closely tied to this, Oracle is in a world of hurt and every possible lever is being pulled to find ways to be "good enough" to capture database and Apps workloads while simultaneously doing everything to prop profit margins and the stock price up. Paying well for any "key" talent in Cloud design or ML/AI. Buying back stock. Cutting teams/divisions that aren't very profitable. Trimming back benefits. Keeping investments in Cloud data centers and networking to the minimum possible. Setting up hubs filled with lower income college grads to slowly replace high earning, experienced field personnel.

Oracle isn't making a big bet on Cloud as it isn't anywhere close to doing what the market leaders are doing. It is playing defense and trying to make bets that it can find ways to just survive. The noise that Oracle is going to beat AWS is all BS. The proclamations that Oracle's tech is great is too. It is all just marketing with the hope they can convince enough customers to move to Oracle "Cloud" and/or to not abandon their existing licenses and support payments.

Oracle doesn't have a Cloud at all. It has leased data centers with disparate products that require manual effort to connect to each other and that rely on the internet instead of dedicated fiber to communicate. It is really Oracle Hosting. That's not a big bet at all. The bet is that Wall Street and customers won't figure it out.

Excellent post by @UXQUKCZ-1fpw.

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| 1391 views | | 3 replies (last September 6, 2018) | Reply
Post ID: @OP+V0xu2ZC

3 replies (most recent on top)

I believe LE loves The Art of War. Here is a quote from it.

“Appear weak when you are strong, and strong when you are weak.”

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Post ID: @1xiv+V0xu2ZC

This original post is spot on. They’re praying Wall Street doesn’t figure it out.

Oracle cloud really is just oracle hosting of disparate systems in leased data Centers connected to other oracle hosting Centers in via the internet. It’s like Verizon hosted solutions circa 1999.

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Post ID: @zad+V0xu2ZC

Cloud is so 2016. It's Blockchain now.

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Post ID: @ixe+V0xu2ZC

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