See TheRegister for story on how cloud washing / one time cloud deals are impacting comp - will be interesting to see how investors feel about this, not hard to see reading this story that oracle cloud revenues have been artificially inflated
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This is rampant with ERP LOB. Renewal rates below 50% significantly. Sold as a discount or compliance issue and customer never plans to implement.
This is the article. https://www.theregister.co.uk/2017/08/25/oracles_cloudy_cash_dash_could_fall_flat_insiders_warn/
So true and its all around EMEA.
As per the article which I just can confirm that Dermot (UK, Ireland and Israel) and his technology sales teams been leading and compensated on this one-time deals, include discounts of on-prem renewals and offers to write-off non-compliance payments after audits - assuming the customer also takes the cloud.
Time to speak up and report
So true. So contradictory. So stupid...
On-prem revenues are avoided like the plague even though they pay the bills and keep the lights on.
Securities fraud pumping up the share price
cloud washing..same as money laundering in the sky
SEC time to take a look at this
Great article and SPOT ON in my opinion! House of Cards appears to be at a tipping point...
Everyone knows investors want to see cloud. That causes every legacy vendor to figure out how to show cloud growth. Vendors without a legacy business like Salesforce, Workday, Amazon, and Google don't have this problem. Traditional vendors like Oracle, Microsoft, IBM, HP, Dell-EMC, and Cisco have this problem. Traditional vendors will do almost anything they can get away with to classify a dollar as a cloud dollar. Comp plans are even being setup to favor or only pay on cloud revenues. On-prem revenues are avoided like the plague even though they pay the bills and keep the lights on.