Thread regarding Oracle Corp. layoffs

Cloud competition

Building out a Cloud offering that is truly elastic and global is really, really expensive given the need for datacenters around the world and the requirement for secure, low latency connections between them. With this in mind, look at the market cap of major Cloud (or enterprise software) corporations

Amazon - $475B

Microsoft - $563B

Google - $663B

Oracle - $207B

SAP - $132B

IBM - $134B

Salesforce - $65B

Workday - $21B

Just looking at things from this perspective...

  1. While Oracle can offer its own IaaS/PaaS platform to customers since these are already in place as part of building out their SaaS offerings, it isn't well positioned to invest the necessary capital to catch-up and compete against the top three IaaS/PaaS providers. It is likely that, at best, Oracle will be a Tier 2 Cloud provider.

  2. Despite struggling to compete at the highest level, Oracle does have significant cash reserves and a global customer base. It will need to invest in datacenters around the world just to meet existing demands and that will position it to, potentially, jump in on the next wave of computing (whatever that may be).

  3. IBM, Oracle and SAP are in the middle ground and are all struggling. They have a legacy heritage that isn't well suited for the new approaches of Cloud, were sizable competitors in the past, still tend to focus heavily on keeping customers tied to on-premises solutions and are having difficulty in making the transition to Cloud. Seemingly, their best play right now is to find ways to hold on to the customer base they have in order to survive and find a growth market to jump into. In Oracle's case, see the next point...

  4. Where Oracle has a chance to win/grow is in SaaS as the battle is against smaller corporations like Salesforce and Workday. It is also already an area where Oracle has strength and, with the acquisition of Netsuite, has the ability to address an even wider portion of the market. Being able to expand the overall solution (e.g. integration, database, etc.) along with offering pre-integrations with Oracle's IaaS/PaaS solutions could provide a powerful differentiation along with a way to reduce cost (to the customer and/or for Oracle's bottom line).

Looking at the overall market this way is just one angle to consider as you evaluate the security/opportunity of your current position at Oracle or where you may want to go if Oracle's direction and your career path don't align.

by
| 1588 views | | 4 replies (last ) | Reply
Post ID: @OP+Ov7bHfa

4 replies (most recent on top)

Don't sit around and assume that (1) you will survive the layoffs, and (2) oracle product will get better because of investments. Both are wishful thinking. Pick up and leave for a company that is managed by human beings who know how to treat employees and understand that they need to invest in products to meet customers' needs. Oracle is a sinking ship, there won't be a miraculous recover. Only more of the same sh--. Good luck!

by
| | Reply
Post ID: @1phg+Ov7bHfa

Here is what is happening Amazon is hiring the season enterprise sales team, with all the contacts at all of Oracle's major customers. With decades of succss as a cloud provider and datcenters globally, all Amazon needs to do is learn how to make their cloud Enterprise class. Oracle has to start from scratch to build cloud with a bunch of disparate non cloud native, dated old technologies.

Amazon - $475B

Oracle - $207B

Who do you think will win the cloud battle? Oracle is busy pushing the best and brightest people in sales, development, and consulting to their biggest competitor. Amazon is hiring 50,000 people.

by
| | Reply
Post ID: @1axn+Ov7bHfa

Don't make the mistake of thinking the execs will capitalize on being able to expand the overall integration between their solution offerings. They've been trying that for over a decade with fusion apps and its gotten no where.

Also I don't see push toward tighter integration as they are laying off people in development. Looks more like lets milk what we have and wait for a customer to pay for something. They would rather lay off in dev, support and sales and let the customer pay for it through consulting... oh wait, they are laying off there too.

Not sure what their strategy is. They can't seem to see past the next QTR.

by
| | Reply
Post ID: @1oyc+Ov7bHfa

Good post - on target and accurate. Kudos and thanks.

by
| | Reply
Post ID: @pbs+Ov7bHfa

Post a reply

: