Anyone have a copy of the MH email sent out yesterday, and/or a transcript of the conference call from yesterday?
14 replies (most recent on top)
There has literally never been a better time to sell oracle stock. Still trading around $50 for a stock that, if investors actually understood what’s going on, should be trading at $5. And here is no coherent argument that anything could get better here, it can only go downhill faster from here on. SELL, SELL, SELL!
When will they publish the q4 result?
Hopefully never, I still own some stock :-(
Re: @ZoxPdGw-lvl
This guy Oracles.
No tears shed if RG suffers
4Q19 earnings report will likely be June 14th
RG is MH’s whipping boy, being out in charge of cloud is like a death sentence since oracle cloud is a completely and total failure and there is nothing RG can do to improve it. He’ll get abused by MH and then tossed aside taking the blame. Oh, well he’s a use git and has already earned way to much money at Oracle.
When will they publish the q4 result?
Q4 must have been bad. Putting RG in charge of just cloud is a BIG demotion, and MH's comment on ISVs probably means that Q4 was very disappointing. This shows a big disappointment with the job that the direct sales force (previously run by RG) did and a focus on selling through partners rather than direct sales reps.
Translation from Hurdese into English:
Cloud and On Prem will be separate orgs. There will continue to be at least two sales reps calling into every account, one saying to buy on prem licenses, and the other saying to buy cloud, each undermining the other. The "ISV" comment means that Oracle is unhappy with its direct sales force (or feel that sales reps are too expensive) and will try to get partners to sell more. This strategy usually fails for large enterprise companies. "Option penetration" means that customers are not buying enough of the expensive database options like RAC, partitioning, advanced security, etc. The "ULA" comment means that customers are no longer buying long-term unlimited license agreements but are just doing support renewals and individual licenses for old systems. All of this indicates that customers are moving away from Oracle products and are not starting new Oracle projects.
Since RG is being put in charge of the Cloud sales org, this is a major demotion for him, Oracle cloud is not, and never will be, even close to competitive with AWS or Google. The history of Oracle cloud is: 1) Deny that Cloud is important (2009-2014); 2) Buy a hardware company (Sun), get rid of its Cloud product, focus on hardware development (2009); 3) Oh that didn't work, lay off Sun people, try to compete against VMWare by acquiring a start-up, Nimbula (2013); 4) Oh that didn't work, so try to build a public Cloud with Nimbula/OpenStack on a shoestring budget and leased data centers from Equinix (2014-2016); 5) Oh that didn't work or scale, so buy some more people in Seattle and try Gen 2 cloud, again on a shoestring budget, hoping "bare metal" will get customers to buy all that expensive hardware (2016-2019); 5) Oh that didn't work either, do another re-org, layoff Gen 2 people, now see if partners call sell this mess.
" to address increased option penetration"
This means customer's have increased options in the market and are migrating away at breakneck speeds. Those "options" that customers have are penetrating the accounts and reducing Oracle's ARR from the license base.
This is what that means.
"focused on our extensive base of license customers to address increased option penetration".
Do you know what this means? LMS, the so-feared License Management Services, Oracle's Torquemada service for any possible revenue that can come from audit checks. The thing you need when your quota is low and your customers don't want or need to buy your software.
I'm just so incredibly glad I don't have to be in those calls anymore...
“License technology business”
Who else emphasizes this in their technology portfolio.. The O death spiral.
This structure seems more conducive to wringing out customer wallets using audits and other methods. This has been the business model for decades, the customers HATE it, yet Oracle doubles down. Proving that the entire executive team needs to RIF themselves.
I replaced full names with initials.
On 6/3/2019 11:29 AM, MH wrote:
In FY2020 we are announcing a new organization structure in our North America technology business which will facilitate increased focus on both our Cloud and License business.
RG will drive our Cloud technology business, imperative to the future of Oracle. Oracle Autonomous Database and Gen2 Cloud are some of the most critical innovations in the entire technology industry.
MH will lead our License technology business. His team will be focused on our extensive base of license customers to address increased option penetration, drive deeper customer partnerships with customer ULAs, and increase engagement with our ISVs - all critical to enable our BYOL strategy.
This new structure will enable us to offer our customers the most choice. We help our customers run their business on-premises, in their customer data center, in a public cloud, or in a combined environment.
Let’s focus on making FY2020 our best success.
Mark