At a presentation to a large audience at the Gartner Symposium last week in Orlando, DP, a Vice President and Cloud Fellow at Gartner Group, asked the audience for a show of hands on which Cloud they were using. When he asked "AWS?", the vast majority of hands went up. "Azure?", a majority of hands were raised. "Google?", about 1/3 of the audience raised hands. "IBM?", five hands went up. When he asked "Oracle" , the audience started laughing. I kid you not.
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I don't think the below is a real post from a real customer, but just in case... good luck. Sincerely.
My company is all in for Oracle Cloud. Our CEO was invited aboard Larry's yacht before the deal closed and we have spent the big bucks on their software stack and will move our entire business from Amazon Cloud to Oracle Cloud.
Gartner is b---s--- - everyone knows how they make money 1) ripping companies off with 50k/seat license for their "research". 2) support from vendors by way of "sponsorship" of events.
Company is a joke. That said Oracle cloud has some work to do, but I wouldn't count it out. Oracle has applications that run the world. Amazon has infrastructure and platform. If I were buying a cloud ERP solution - I bet I might need some infrastructure and analytics capabilities in the same cloud as my applications. Totally different sport. I think LE makes these wild claims against competition to take their eye off the ball, meanwhile ever application deal gross the platform and infrastructure revenue.
Plenty of room for everyone. Else, we all quit our tech jobs go work for Amazon and call it a day - or be replaced by automation.
The good news: Most of our cloud business is in SaaS, not the IaaS or PaaS markets that the Gartner audience was focused on. So their laughter does not represent our entire cloud portfolio.
The bad news: Most of our cloud business is in SaaS, not the IaaS or PaaS markets that the Gartner audience was focused on. Tragically our IaaS and PaaS are the only parts of our cloud that actually kinda work. Fusion Applications is an unmitigated disaster that we can barely keep running, much less improve. Customers hate it, our sales people can't sell it, and it is held together with duct tape and bubble gum. Even our own EBS customers are choosing to go to our competitors rather than migrate to Fussion.
OP, this is just too funny but so true. We are evaluating public cloud vendors at work and I have never heard anyone mentions Oracle cloud.
Regarding geos hosting IaaS ADs, Frankfurt was recently announced. So don't believe the FUDsters 100%. Is ORCL a GOOG? It is not. Is it possible it will grow IaaS to become a top 10 player? Yes. Disclosure- I was RIFed early Q2 and am not some insider in Magic Pony land.
It could be also the horse guard keepers with Compliance & Ethics management titles.
your post should be removed
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You must be in Oracle mangement. I'm thinking Director or Senior Director.
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GFY.
I'm not @PKFkLap-1rxk but I can share that there is government and also SEC investigations regarding cloud-washing globally in Brazil , France , Italy, South Korea, India, Spain, Turkey and several smaller countries.
Allow some been reported internally and senior exac been notified , Oracle didn't take any remedial measures.
In the above countries some Oracle managers/employees and partners acting on the company’s behalf made improper reporting in order to land sales of Cloud , database and PasS/IaaS.
@PKFkLap-1rxk Please cite where there is an investigation? If you can't then your post should be removed.
/No private cloud has been deployed at AT&T.
Maybe not yet as it is a multi-year agreement, but there was a big announcement this summer after the end of Oracle's fiscal year about how AT&T chose Oracle's Cloud. The reality is that (1) the majority was on-premise Exadata hardware (but with "Cloud" software), (2) lots of Cloud credits were attached and (3) many (maybe all) of the funds for the deal were shifted from what AT&T's already pays in annual Oracle support (a nine figure amount).
To the point of this thread, even Oracle's marquee "Cloud" wins are just financially engineered arrangements that are used to dupe Wall Street and those who Oracle is hiring with tales of future Cloud dominance.
Oracle does not have $4 billion in real Cloud revenue. I acknowledge that Oracle sells a lot of SaaS, but the situation is not that rosy. Let's look at the reality behind the numbers (based on the Q1 2018 earnings report) and discuss why layoffs will continue, even layoffs of personnel involved with cloud:
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$320 of the $410 billion in SaaS growth from Q1 last year was Netsuite. (estimate of 25% growth over Netsuite's revenue last year). Much of the revenue comes from acquired technologies like Eloqua. It is of course perfectly legal to acquire growth, but Oracle paid $9.3 billion for Netsuite to get maybe $1.5 billion per year in revenue.
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Oracle claimed two years ago that SPARC was the biggest item in the $5 billion R&D spend. This would mean that since 2009, at least $5 billion to $10 billion has been spent on development of SPARC, which is now a dead platform.
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We are certain, from this board and mainstream media reports, that Oracle adds cloud credits to every on-premise software order they can, including true-up payments from forced audits. e.g. Add $500k of cloud credits to a $2 million order, true-up, or renewal. Microsoft and IBM also do this, We also know that much of these credits are not consumed. Once the credits expire, the revenue can be recognized as it is not refundable.
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Some hardware customers of SPARC and/or Exadata are not refreshing end-of-live servers but are accepting huge Oracle incentives to buy new hardware run in Oracle's data center. Oracle calls this "Cloud", but in reality, it is just non-elastic hosted hardware. This shifts revenue from the Hardware bucket to the IaaS bucket. It's not real revenue growth.
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In other words, the $400 million IaaS/PaaS revenue is not really anything close to $400 million in cloud.
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SC and MH will continue doing what they are doing as they have made over $100 million by cashing in stock options.
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The highest margin SKU, database licenses and license renewals, are declining in revenue, putting enormous pressure on margins. To maintain margins, SC has cut commissions, bonuses, and personnel.
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There is massive restructuring going on with more to come. The field salespeople, blamed for lack of real cloud revenue, are being replaced by new college hires. Some may be smart, but the new hires are not going to be able to negotiate a multi-million deal with a 200 SKU portfolio with 1000s of options. This in turn will lead to even less revenue, more margin pressure, and more layoffs.
Oracle is a joke in IaaS cloud because:
1) Never before have C-level executives made so much money by making such bad decisions and having zero vision. LE literally laughed at cloud in 2009 and instead decided that Oracle would become a hardware company. How is that working out? https://www.youtube.com/watch?v=KmXJSeMaoTY
2) As a result, Oracle was very late to the game. Basic IaaS services were not GA until 2016, ten years behind AWS and 5 years behind Azure.
3) Gartner did not even put Oracle on the IaaS Magic Quadrant until 2017, due to "lack of market share" and "insufficient services offering."
4) Oracle has not invested enough in cloud infrastructure to compete. According to Morningstar, over the past 4 years, Oracle has invested $3 billion, Microsoft $14 billion, Google $30 billion.
5) Oracle has made bad acquisitions and false starts, the same problem as with IBM. Oracle tried to build a public cloud with the technology acquired from Nimbula using leased data center space from Equinix. It didn't scale or compete. Then in 2016, they had to start over with Gen2 / Bare Metal cloud, which is behind the Nimbula cloud in services and security certifications. Ask your Oracle salespeople if the database service is HIPAA certified on Bare Metal. Ask your salespeople to provide a map of where Oracle cloud data centers are located. Ask if there is software-defined networking. As if IaaS virtual machines can have two network cards and therefore run Oracle Database RAC. Ask if there is a data center on the US west coast. Ask them why there are two clouds.
6) Without an adequate IaaS infrastructure, the new "Autonomous Database" service won't work either.
I am not OP but if what’s posted is true then we need to accept it. Sometimes truth hurts regardless for those who are inhumanly let go and those who are still there. Companies market their products by sugar coating it and that is how many of us feel but numbers won’t lie if they are truthfully presented. Yes, Oracle showed ~ 4 billion in revenue for cloud, which btw was close to what it made in hardware and service related to hardware. Question in my mind is, how does this $4B stack up against the fierce competition?
To become top tier a company needs an outstanding product and genuine management companies can trust. If they lie or say one thing and so a different thing then customers are going to lose faith and start bailing out. This is the path Oracle seems to be taking at this time or it feels that way. If Oracle was really on acceleration of cloud then why was the guidance given by SC was not in line with the expected market acceleration?
I do hope Andrew wish well for everyone related to Oracle one way or the other.
Oracle does not have $4B in cloud revenue. That is just not true.
Not even with Net Suite.
@1oua: Oracle doesn't have 4 billion in cloud revenue - it's doing some "interesting things" with regular software and support deals that involve booking things as cloud credits. The government has started investigating them for it. This is one of the reasons the revenue numbers don't match the market share numbers.
I can tell the OP is unemployed and still bitter about being fired. What’s your point of this post? Does it help you sleep at night? Is your life more complete??
No private cloud has been deployed at AT&T.
In the context of the Gartner symposium, the question was about IaaS/PaaS. Sure, Oracle will point to growing faster than Amazon -- at a 300% rate -- but that is just going from 0.1% to 0.3% of the market. The majority of that likely is from financial engineering and Cloud-washing. Every deal was mandated to have Cloud credits attached (often in exchange for a lowered support bill) and while the vast majority of customers don't touch them, Oracle gets to point to Cloud revenue. Then there are all the on-premise hardware deals (AT&T and Bank of America) where is it claimed to be a Private Cloud so, again, Oracle can claim revenue and market share. In the IaaS/PaaS arena, Oracle Cloud is just marketing and financial manipulation. The response from the crowd proves that out.
That’s it! You nailed it. It has to be the field’s fault. This oracle stuff is just so awesome it sells itself. The sales reps are just morons and can’t get the paperwork completed on all those orders that are flying in...
Bwahahahaha
Oh then there is so much scope or growth - may be something wrong with the staff at oracle who are unable to grow the business
Lots of customers use SaaS cloud. Not as many use PaaS or IaaS but they can still sell it. They just have to get aggressive and play to win.
Oracle has 4 billion in cloud revenue how can that be if no one is using it ?
https://stackoverflow.com/questions/16820336/what-is-saas-paas-and-iaas-with-examples
Only a single mention of oracle in this whole discussion, and then it's mentioned as a minor player in only one response.
Oracle is not a player in the cloud space and it never will be.
LOL! Exactly, there is no cloud at Oracle. It's just a joke.