The reason why Oracle is shrinking, and wont shrink into greatness

Since Hurd joined Oracle in September 6, 2010, Oracles quarterly revenue has been between 8.5 and 11.32B. Its peak was in May of 2014, before the pivot to the cloud at 11.32B. It has not returned to that peak since and it will not again.

Hurd and Catz (former CFO) are numbers people. They are good a t working balance sheets and minimizing costs. Neither of them are technical innovators. The innovator, the visionary behind Oracle is Larry Ellison.

On Sep 18, 2014 Larry Ellison offically stepped down as CEO, leaving Oracle to the "Hurding of Catz." These two do what numbers people do. They cut costs, the invest in something with secure ROI. They do not invent, they purchase companies that invent and add them to the portfolio. Then they squeeze the profits for as much as they can.

They are not technical innovators, in and industry lead by technical innovators. Since 2014 they key indicators of company health... revenue (not earnings) have dropped. To keep the ratio of stock price to earnings high they have to cut expenses. The PE ratio is what wall street watches.

Basically they begin to burn the furniture to keep the house warm. Instead of keeping innovators, they replace expensive labor with cheap labor. Its what they do. Its what they have been trained and hired to do. They are not technical, they are not innovators and they are the leaders of the great technologies known as Oracle.

Can you name one innovative technological firm that has achieved great success, that has been lead by accountants? What great innovative technical company as a startup that has been acquired by another company lead by accountants that has flourished?

Where is the innovative technical leadership in Oracle? Who is it? What is going to drive revenue to Oracle? What product is the brain child of a technical innovator at Oracle? The database? Yes... that is Larry's baby. Where is Larry now? What is happening to Oracle?

Watch the numbers game play out. Because that is all that the leadership at Oracle can do. The numbers are important and finance has its place. But finance never innovates. Finance cuts costs and manages cash flow. It does not generate revenue.

Watch the revenue numbers.... see for your self. And watch it continue to decline, while magically earnings per share go up.

https://ycharts.com/companies/ORCL/revenues

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The 2 IT companies that are in big trouble are HP and oracle - and what do these two have in common? Genius MH who has f&@$k up both! Then there is IBM, but that's a different mess altogether

This isn't limited to Oracle. The majority of the big heavyweight IT companies are in an identity crisis. Their products are no longer the leading IT products.

If you're a recent college grad--good luck to you if you do end up at working at Oracle. Learn some skills, but do not stay long. You have no future in a company like Oracle.

Why bother sorting out oracle when you can have fun with America's Cup instead - what else do you need to know about the future of oracle?

Well said , OP.. yes they buy companies and mess up those products too

A skipper less, rudder less ship, to use an analogy LE should understand. Not how you win competitions, which is why oracle is losing very, very badly

Burning the furniture and ultimately the house frame and the roof to stay warm is exactly what MH and SC are doing, they expect to be gone by the time they have burnt down the house, which is why SC is selling her oracle stock as soon as she can. No future hear, just a managed decline, think of it as a patient with terminal cancer in hospice care

Oracle products do.NOT SELL THEMSELVES. It's getting harder and harder to sell any of oracles products even the new SaaS products . Once oracle buys a company the Innovacion dies quickly within two years and customers are stuck and products don't sell anymore . This is why SaaS sales are shrinking not growing . Any net new is just replacing the ones that abandoned the platform or cloud SaaS.

What generates revenue is sales... sales is the most expensive highest paid (highest cost) inside Oracle. Cutting the fat here saves lots of money. If the products sell themselves.... and you believe that, or you think the customer is locked into support contracts... you might be tempted to cut sales.

You also might be tempted to cut the second highest cost... development. You can milk the fat profit for a few years because the support revenue comes in with a very low cost of sales and development. You can squeeze out what you lack in revenue, by reducing an equal amount of cost and your earnings stay high.

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The reason why Oracle is shrinking, and wont shrink into greatness

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