Thread regarding Oracle Corp. layoffs

Execs target enterprise sales team for next round of layoffs

Just met with a friend that was privy to high level executive planning sessions. New targets are based on doing nothing more than driving stock price. A few years back like Q4 FY14, FY15 the biggest revenue generators were the top of the enterprise stack. These customers were touted as the Strategic Industry Verticals by MH (healthcare, finance and telecom) and he created the Strategic Industries group to service them.

Analysis showed that these biggest customers were the place to target the sales effort. It paid handsomely. Diving deeper into Oracles biggest customers paid nicely.

What is driving the stock price however is cloud revenue. These same customers are now getting the stiff arm from Oracle for two reasons. The first is they are heavily regulated and not able to quickly move to the cloud, the second is they now have a "containment" strategy in place to curb Oracle spend. Many are claiming they no longer wish to renew the universal license agreements in place. For these reasons sales to these big customers have diminished considerably over the past several months.

What is holding back Oracle is a host of regulatory requirements around security and networking. Specifically a big pipe between the Oracle data centers and the customer data centers. Oracle acquired Dyn in November of 2016 to resolve many of these issues. Oracle is also building out its core capabilities to integrate everything together with the new IAAS offering. In short there is much work to be done before it can get its bread and butter enterprise customers to move to cloud.

It should come as no surprise that Oracle execs have no love for sales reps. Now an eye is cast upon the core enterprise sales team, which is for all intensive purposes, nothing more than useless overhead until this gets sorted out. Discussions on how and when to do the layoffs are underway. Expect sharp reductions in short order.

This goes counter to the annual sales team cuts, as the enterprise sales numbers clearly show there is no reason to wait. The spreadsheets are ready for the Sept 14th Q1 FY18 earnings call. So is the list of sales reps and sales support to get whacked. My friend has no details as to the exact time of the enterprise sales team layoffs, only that its coming soon.

Again the discussion on the loss of business continuity and talent has no bearing. Its a new ball game and the execs believe this requires new sales talent. No reassignment of the existing enterprise sales force is deemed necessary. You wont get a job elsewhere inside Oracle sales. Enterprise sales is about to shrink dramatically Sales reps, business development, sales engineers to be let go in short order. Almost all the sales for cloud is coming from small to mid market customers, and that is where the focus is.

by | Post ID: @PaUegVz
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19 replies (most recent on top)

@PaUegVz-2kmn & @PaUegVz-2yom : Exaxtly exactly! They said it best.

In 7 years LE will Be 80.

by | Post ID: @PaUegVz-3ojz

There's no way we can get the security certifications we need. PDIT runs most of or stuff on software that hasn't seen a security update in years. They disable even the most basic sucurity protections and everything is set up to use encription and hash standards that have been known to be at risk for ages. Seriosly, we have systems running unpatched OS from 2011. We are at least a decade from where our competitors are in terms of security.

by | Post ID: @PaUegVz-2ucw

@PaUegVz-2yom : exactly this. O execs know that apart from marketing b---s---s OPC can be at best 4th or 5th in the real market in the short/mid term. so given this, why spend more money on an exèerienced staff that would in any case be unable to sell that garage? better use low cost labour and try to survive a little bit longer some way.

by | Post ID: @PaUegVz-2kmn

@2mrs

New college hires won't be able to sell this poor offering any better than the enterprise sales force.

But it lowers costs and that is all that matters.

by | Post ID: @PaUegVz-2yom

@1aec

but it's going to take those analyst idiots a while to figure it out

I did think these analysts were smart but they are not. It makes me question their other analysis for companies they are responsible. They are probably new college hires also and don't have wisdom to reverse engineer the numbers, do some non-standard research, and be able to figure it out.

by | Post ID: @PaUegVz-2nrg

"Intensive purposes" ?!

The phrase is "intents and purposes".

by | Post ID: @PaUegVz-2ytg

Regulatory requirements are not the biggest reason why Oracle customers are not moving to Oracle cloud. If there is a regulatory issue, it is because Oracle cloud is way behind the competition in certifications like HIPAA and SOC2. Oracle cloud is a very poor and undercapitalized offering, and it's feature poor compared to AWS or Google. SC's strategy is "just in time" - she waits for revenue before investing in cloud infrastructure. Meanwhile, customers wait weeks to get systems provisioned. If you're a west coast customer, you must accept that your production system will be in Phoenix (Gen 2) or Chicago (Gen 1) with disaster recovery in Ashburn, VA, and customers do not accept that their only choice of a DR data center is 3000 miles away. The Chicago and Ashburn facilities are just leased space from Equinix. The Gen 1 offering is based on a failed, feature-poor, unscalable acquired technology, Nibula. Oracle is starting over with Gen 2 / Bare Metal, but this service is less mature and has fewer security certifications that Gen 1. Provisioning of some services can take weeks (that's right, weeks ... not seconds). Billing/chargeback and overall networking capabilities aren't even close to enterprise class. It's just an awful mess.

New college hires won't be able to sell this poor offering any better than the enterprise sales force.

by | Post ID: @PaUegVz-2mrs

Yep, utter idiocy that will only run oracle further into the ground, but perfectly consistent with the impression that oracle is trying to create in the stock market that it's somehow a cloud company on the up and up. It's not, but it's going to take those analyst idiots a while to figure it out, on the meantime MH and SC will sell all their stock at excessive prices totally detached from the underlying reality. That's the game here

by | Post ID: @PaUegVz-1aec

They don't want older experienced people. Period. Don't think the salespeople have any better leverage, even though they hire these fresh faced young people to sell stuff. Throwing good talent out is stupid, but if all you give a sh-- about is your stock price, it's par for the course. Oracle can't die a painful death soon enough for me

by | Post ID: @PaUegVz-1pxd

Oracle SAAS et al apps are too expensive for the mid market . This shift in focus to mid market is ill researched and phony. Salesforce and others won the SMB & MMkt long ago on price and user adoption.

Net Suite does have some dominates in niche areas in the mid market and a few enterprises.

But the net suite group is a total separate operation from oracle cloud apps...

Enterprise sales strategy is completely disconnected from reality today. Only a few accounts have a good cross pillar sales team working together achieving succe$$. These folks know who they are. The rest: adios amigos.

The Oracle Direct kids & their adolescent managers Will only further ruin the Oracle reputation until this rumoured strategy is revealed to get to $80 per share. It's a long way away .

by | Post ID: @PaUegVz-1wmk

So another 2,500 people or so to be laid off? Any thoughts ?

by | Post ID: @PaUegVz-tcr

@czz - careful there, God knows he's not LE, don't give LE any ideas by putting him in the proximity of Jesus

by | Post ID: @PaUegVz-bak

He can take Dave Donatelli and all his HP goons with him.

by | Post ID: @PaUegVz-onl

$80 share price and $20bn in cloud sales, a pipe dream. This is the end of the road for MH, he'll be gone before you know it

by | Post ID: @PaUegVz-ocf

Agreed! its time for those 3 old farts to check themselves into a nursing home and make way for the younger generation that will take oracle to the future. move on old farts!

by | Post ID: @PaUegVz-itg

No surprise here, many large enterprise customers hate oracle and have no desire to move to oracle's cloud just because oracle wants to generate cloud revenue

by | Post ID: @PaUegVz-uid

"Oracle is the uncool dinosaur trying to reinvent itself while being led by an exec team so old they new Jesus."

Thanks for the chuckle, @-ybe!

by | Post ID: @PaUegVz-czz

Agreed. Oracle wants to go after the segment of the market they haven't traditionally sold to. These customers haven't been burned by Oracle yet. They're fresh meat to be exploited. I don't think these customers will be naive or easily won. AWS, Azure, and Google have all the buzz right now. Oracle is the uncool dinosaur trying to reinvent itself while being led by an exec team so old they new Jesus.

by | Post ID: @PaUegVz-ybe

Sign up for FedEx delivery notification alerts. If you get email/text saying a package from Oracle will be delivered to your home the next day, you'll know your number is up.

When they do lay you off, maybe a manager or HR type will do it face to face. Or maybe you'll get the same treatment the hardware people did on 9/1: a conference call from some Oracle executive. The 9/1 conference call may have been a recorded message...opinions differ on that point.

by | Post ID: @PaUegVz-opz

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