Reminder that of last quarter, Software was down 20%, and Hardware down 10%. Neither is good, but Hardware is only like what, 15-20% of Oracle's total revenue stream. The Software losses are a much larger drag on overall numbers right now, to put things into perspective.
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-4thm
Amazon and Google don't have cloud or hw and SW as a primary business. They benefit from economies of scale and the fact they are likely the largest users of their cloud. No need to battle out with hw/SW vs cloud with anyone.
It's not hard to see what is happening. Revenue is shifting from HW & SW to the Cloud. Even if a customer does not want to buy cloud, cloud will be part of any opportunity.
If company X wants to sell cloud to customer Y, but customer Y does not want cloud, then company X will sell them the HW & SW products that customer Y wants but will also give customer Y the ability to buy cloud + HW & SW at the same price as just the HW & SW. The customer would be stupid not to take the package with more stuff. All companies are doing this. The only companies who can't move revenue around like this are Amazon and Google. They have to be able to sell cloud on its own merits.
Perspective is what's the ROI that will get cut first in any declining market. Example R&D for sparc is probably not worth it. They will cut on R&D by a lot. You will see.