So is Oracle in stage 4: grasping for salvation (wasting money on the Seattle group) or stage 5: capitulation to irrelevance or death?
7 replies (most recent on top)
The fact that the infighting of the super egos is so big that instead of saving money to co-lo OCI-C and OCI both groups often lease space in the same facility!
So in other words Oracle has stage 4 cancer that it may be able to limp with for a while until the grim reaper comes. Nice work LE!
They're simply too invested at this point to quit; colo/network contracts are 5-7 years so they can pull the hardware but they can't just turn things off. There are OCI-C datacenters that are completely empty but are still "running out the clock" on the contract - including cases where OCI is leasing space in the same facilities. Part of the "not invented here" fresh start in OCI...using the same hardware, the same colos and just writing all "new" software...to do the same things.
The reality is that if they actually had more than single-digit growth, or even a single big customer commit, there's no way they could service that in less than 4-6 months due to colo, network and hardware constraints.
They'll continue to consolidate the cloud offerings, continue to drastically misstate revenue and profits and it will either a) get better leadership that actually builds a coherent offering or b) limp along at 3-4% growth forever.
Given that there's some cash reserves available, Oracle will probably stay a bit more longer in stage 4; but the longer it stays the worst stage 5 will be.
STAGE 4: GRASPING FOR SALVATION. The cumulative peril and/or risks-gone-bad of Stage 3 assert themselves, throwing the enterprise into a sharp decline visible to all. The critical question is, How does its leadership respond? By lurching for a quick salvation or by getting back to the disciplines that brought about greatness in the first place? Those who grasp for salvation have fallen into Stage 4. Common “saviors” include a charismatic visionary leader, a bold but untested strategy, a radical transformation, a dramatic cultural revolution, a hoped-for blockbuster product, a “game changing” acquisition, or any number of other silver-bullet solutions. Initial results from taking dramatic action may appear positive, but they do not last.
STAGE 5: CAPITULATION TO IRRELEVANCE OR DEATH. The longer a company remains in Stage 4, repeatedly grasping for silver bullets, the more likely it will spiral downward. In Stage 5, accumulated setbacks and expensive false starts erode financial strength and individual spirit to such an extent that leaders abandon all hope of building a great future. In some cases, their leaders just sell out; in other cases, the institution atrophies into utter insignificance, and in the most extreme cases, the enterprise simply dies outright.
Taken from: https://www.jimcollins.com/concepts/five-stages-of-decline.html
apparently not.
Probably same person who keeps posting on the 3 st0oges, etc.
Said person needs serious help.
You keep predicting that every quarter.
Don't you ever get tired of being wrong?
Life support until earnings next month, then someone will have to pull the plug