Thread regarding Oracle Corp. layoffs

Executive thinking behind this summer's 2017 reorg

Two posts in the forum were very spot on @N2UeFdk @NkiQdKE

What is missing in these posts is how the ones who got the layoff or firing were selected. It is true that most of the Veteran field sales positions are being replaced by Oracle Digital. The majority of the new hires are recent college grads given a set of slide decks and a "dialing for dollars" sales script. Also true that most of the cloud proof of concepts will be handled by Sales Engineer's Oracle India.

The new model is a "hub and spoke model." Oracle digital is the hub. The Platform SalesRep and the ECA are one spoke, the proof of concept teams in India are another. The general idea is that cloud sales can pretty much be done remotely. With one rep and one sales engineer on the ground, what you have is a very light weight sales foot print.

This new model goes counter to Oracles "Value based" sales training. Catz has met with IBM's Rometty to discuss how to offshore resources with out violating the H1B visa laws and slip the "hire and replace model" under Trump's nose. By hiring college Grads at a much lower cost the number of US based employees Salary is reduced. To replace technical knowledge a 400 million dollar in vestment in Bengaluru was made to higher the new sales engineers capable of delivering the Cloud proof of concepts for the sales team.

New jobs are here in the US, but the net effect is a reduction in the cost of the sales force. This Executive level discussion had some interesting twists and turns with cost center 0722 header by VT and cost center 0709 headed by JW. In a nutshell how to we do a baited switch so as to not raise alarms in the US and other countries? How do we make sure what we do is legal?

Also the formula for selecting who is laid off is also very simple. Sales Engineers and other employees who worked a lot of overtime or received bonuses are seen as very expensive. These employees are normally seen as valuable as they are heavily engaged and producing results. But the new "numbers" sales model shows them as undesirable. The "numbers" sales model is all about employee cost. This is the model that changed the rules for approval on overtime, removed the car allowance and changed the bonus structure. The executive white board is very simple.

What was not seen nor understood by the executives is the simple statement that AWS, Google and Azure all recognize. "Cheap labor is not skilled, and skilled labor is not cheap." Sadly the lack of investment in the cloud infrastructure and the de-investment in the Oracle sales force has spells doom for Oracles cloud in its infancy.

Oracle's ability to close cloud deals base on its new bare metal cloud next gen IAAS is also under atatck by Amazon's counter with the new I3 storage, EC2 R4, T2, C5 and F1 instances. This is the same if not better as Oracles new IAAS.

Oracle's main draw to its cloud is its ability to run Oracle RAC, Exadata and Solaris Oracle databases. Exdata represents less than 2% or Oracle's customers, where as RAC has a much heavier foot print. Amazon has come up with a way to run a n-node RAC just as Bare Metal now does. Its called Mission-Critical Databases in the Amazon Cloud. Oracle RAC on Amazon EC2 Enabled by FlashGrid Software. More importantly, Amazon is hiring all the database Sales Engineers that Oracle is laying off in order to make the proper enterprise level sales pitch.

AWS counter to Oracle Bare metal Cloud:

https://aws.amazon.com/new/reinvent/compute/

AWS Counter to Oracle RAC:

https://www.flashgrid.io/wp-content/sideuploads/resources/FlashGrid_OracleRAC_on_AWS.pdf

Public facing information on Oracle's reorg:

https://www.linkedin.com/jobs/oracle-jobs-bengaluru/?trk=jobs_jserp_facet_geo_city&country=in

https://www.nytimes.com/2016/01/26/us/lawsuit-claims-disney-colluded-to-replace-us-workers-with-immigrants.html?_r=0

http://wolfstreet.com/2017/01/23/big-shrink-to-hire-25000-in-the-us-as-layoffs-pile-up/

https://www.recode.net/2017/5/1/15499586/american-technology-council-trump-tech

http://fortune.com/2016/12/14/trump-tech-ceos-catz-sandberg-rometty/

http://indianexpress.com/article/technology/tech-news-technology/make-in-india-oracle-will-open-its-first-campus-in-india/

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| 2358 views | | 6 replies (last ) | Reply
Post ID: @OP+NEKOz7L

6 replies (most recent on top)

The layoffs in sales consulting / cloud architecture last week were not based on salary, overtime, or ethnicity. Lots of older, highly paid white guys are still around. People who were part of on-prem tech pillar or hardware teams were the ones let go. A few were allowed to transfer to the cloud architect organization.

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Post ID: @1eyy+NEKOz7L

The 3 stooges have no clue about the cloud business and how to be successful in it, all they care about is costs and showing growth by shifting support revenue for on-prem solutions to cloud bookings to pump up quarterly results for yet another quarter. Did you notice - no new cash to oracle in the big ATT deal, how pathetic is that, pure manipulation of numbers

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Post ID: @1unv+NEKOz7L

What execs don't understand - renewals and services are key to healthy cloud subscriptions. Or maybe they are too busy churning new cloud sales and rebalancing costs to focus on that now.

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Post ID: @1vxy+NEKOz7L

Save a nickel, lose a dime..

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Post ID: @1aec+NEKOz7L

I like it that Amazon is hiring the displaced to build the alternative. That is innovation at work!

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Post ID: @sae+NEKOz7L

We ‘Make in India’ for the rest of the world,” said Oracle CEO Safra Catz.

The Oracle India campus will be spread over a huge 2.8 million square feet, and will be largest outside its headquarters in Redwood Shores, California. The buildings will include collaboration centers, workstations, and large spaces in addition to entertainment lounges, gyms, a basketball court, open green spaces, and cafes.

http://indianexpress.com/article/technology/tech-news-technology/make-in-india-oracle-will-open-its-first-campus-in-india/

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Post ID: @mlv+NEKOz7L

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