How many of oracle's cloud customers are real, that is, actually purchase cloud - IAaS, Paas, or SaaS products -- as opposed just had oracle include them in the contract, in effect for free, so that oracle could Include them in the tally of cloud customers?
14 replies (most recent on top)
"Mark knows his days at Oracle are numbered and he is desperate. Mark and Safra’s lack of industry vision turned Oracle into a holding financial entity not a technology company"
Very true. Safra is an investment banker, Hurd is business major on a tennis scholarship.
LoL! By definition - once you run the company into the ground, you're done and since that is what he does best, his gigs only last so long. How long was he at HP?
https://www.linkedin.com/pulse/mark-knows-his-days-oracle-numbered-ahmed-azmi
Good writeup
The acquired customers are paying more for less support/service. Some stopped using Oracle and moved on. I have not seen a new customer since acquired by Oracle.
at fau-
you're welcome :) another thing to consider in my opinion is that we acquire companies to make our cloud revenue growth look even bigger. in reality we are just acquring their past biz and the future biz may never come to reality
so the "traditional oracle products" (the DB, and to a lesser extent hyperion, peoplesoft, java) are absolutely stagnating and declining
This all sounds very manipulative and deceptive
Customer wants to buy on-prem, Oracle wants to sell Cloud.
Customer is told they can get cloud for free or less with on prem purchase. To Oracle, it's like selling cloud and giving on-prem away.
Oracle hired a bunch of cloud success managers to get customers to use this free cloud they're given. Without using it, it's just bookings and not billings.
To add fuel to the fire, they let customers move some support revs to cloud subscription. If customer doesn't adopt after some time, they can just cancel. It's one of the only ways to reduce your support burden outside of cancelling all products under a CSI. If you try to cancel a CSI they try to readjust the support so you don't save any money.
Thanks ost!
Wow - talk about revenue shifting to make it seem like cloud is growing
at mee-
say list price is 100,000 for a traditional license, and customer typically receives the net price of 70,000 (30% discount)
oracle says, "we will sell you this license for 50,000, as long as you purchase a free 20,000 cloud for a total of 70,000. also, you will pay less support for the license year over year"
customer says "why cant i have the license for 50,000, no cloud?"
oracle says "take it or leave it"
Atu - how does oracle allocate/ recognize the revenue for the free IaaS & PaaS?
I am working with sales guy for 2 of my clients having PeopleSoft applications. Oracle is giving them IaaS and PaaS as free with PS On Premise upgrade / support deal.
Oracle Sales process is -Sell Cloud, if customer still wants On Prem, give them free cloud with On Prem.
IaaS included in every Tech deal whether customer asked for it or not
Cloud revenue goes up, HW, SW, & Apps revs go down.
As Bill O'Reilly would say, "you can't explain that."