Thread regarding Oracle Corp. layoffs

The return of declining revenue: why Oracle's race to the bottom will mean more layoffs

I expect that Oracle will resume year-over-year declining revenue with next week's earnings report. In the celebration and stock price increase that followed Oracle's seemingly good Q42017 earnings, there are a few facts that perhaps Wall Street forgets. All of the earnings growth for Q4-2017 was the result of a one-time tax break. Over 90% of revenue is still from on-premise hardware and software, both of which have experienced catastrophic attrition and layoffs since Q1-2018 started on June 1. Much of the revenue is due to what Gartner group calls "draconian audits", shaking down existing customers to the tune of millions of dollars. Those audits usually include millions in "Cloud" credits ... deals that are booked eventually as cloud revenue without services ever being consumed. These customers are so alienated that they will never buy from Oracle again. They're running out of customers to audit. The biggest customers are not renewing ULAs or are renewing at steep discounts.

The transition from an experienced enterprise field sales force to new college hire telesales is happening to fast and is too disruptive. The college hires are told to undermine field sales. For example, we were trying to sell a customer a cloud solution while the new college hires were calling the customer and selling on-prem licenses without us even knowing about it. A typical customer gets multiple calls from different Oracle salespeople every week, none of whom are in communication with each other. Oracle's products and contracts are too complicated for a new college hire to handle. Oh, yeah, Oracle has a new "simplified buying procedure": you accept all of Oracle's T and Cs and accept no discount. Good luck with that. New college hires are trying to close multi-million dollar deals with CIOs over the phone and are getting laughed at.

The attrition and layoffs in field sales have resulted in awful revenue, which in turn will lead to more layoffs. It's a non-stop race to the bottom. Oracle's IaaS and PaaS offerings are simply not competitive in features and reliability. Oracle lacks security certifications like HIPAA and FEDRAMP, so some customers simply cannot use it. Customers wait weeks for services to be provisioned. For some services, you need to file an SR to get a port opened in the Oracle cloud firewall, and it takes 5 days, delaying your project. Customers of AWS and Google can do this themselves in 2 minutes. Billing and chargeback by project ID or cost center? Data centers for Cloud? Fuggetaboutit. Search for "AWS Cloud Data Center List" or "Google Cloud Data Center List", and you get a map showing data centers all over the world. Now try "Oracle Cloud Data Center List", and you get marketing statements about sustainability. Why? Oracle has only two data centers in the US, Chicago and Ashburn, both just leased space from Equinix. West coast customers do not buy Cloud solutions that require disaster recovery 3000 miles away in Ashburn.

Which challenger to AWS do you think will win, Oracle or Google? Google, AWS, and Salesforce are hiring away our best sales consultants. Google is spending $30 billion on cloud infrastructure. Oracle spending $3 billion.

Perhaps the biggest problem, not only for Oracle but for IBM, Dell, and Microsoft as well, is the Cloud pay-as-you-go model. Customers no longer need to write a check in advance for millions of dollars to get new projects off the ground. With AWS and Google, customers provision Cloud services as they need them. There is no more shelfware; you get billed only for the services you use. Customers are using open source software through Cloud services and are not buying proprietary close source software licenses anymore. Although Microsoft has taken Cloud far more seriously than Oracle, they too are experiencing catastrophic layoffs as the "pay as you go" model disrupts everything that they are about as a business. Also, there is no more pump and dump. WIth pay-as-you-go, customer applications must get into successful production in order to generate significant billing for Cloud services. Oracle, IBM, HP, Microsoft, and Dell do the multi-million dollar deal on last day of the quarter, then they disappear and move on to the next deal. It doesn't matter if the customer is successful or if they never deploy the software or hardware they bought. Now that customers have a pay-as-you-go alternative, they're not buying under the old system anymore.

by | Post ID: @Pcy3PgS
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8 replies (most recent on top)

"Sounds like your mad, your post has the energy of a bitter ex wife.

Your explaining oracle downfall because they fired you! Just move on!"

...said a clueless Oracle employee.

by | Post ID: @Pcy3PgS-2zba

Sounds like your mad, your post has the energy of a bitter ex wife.

Your explaining oracle downfall because they fired you! Just move on!

by | Post ID: @Pcy3PgS-2chd

Nothing can save the day. At the bottom of everything is a completely dysfunctional engineering organization where the managers are so focused on their narcissistic egos they can't see straight to do anything useful. They are busy trying to grab territory from each other and terrorize their employees, they have no idea how to build anything. They sit around in useless meetings all day long and pass back and forth useless information to each other because they are all too scared to ask anyone who actually knows anything. They would rather sit around and echo each other.

If engineering can't build or maintain anything, then there is nothing to sell. That's the bottom line.

No functional engineering means no future. Oracle is dead.

by | Post ID: @Pcy3PgS-1apa

A blockbuster to his bank account for sure, a total bust for oracle. Why is he still at oracle? LE acting more and more as an absentee slumm lord. Must be his age and distractions ....

by | Post ID: @Pcy3PgS-qqg

Was'nt TK expected to create a blockbuster in the 10 years he has been head of development

by | Post ID: @Pcy3PgS-yxy

The Oracle database is a good product, but there are no new projects using it anymore as it is too expensive, there are plenty of alternatives, and it's too difficult to do business with Oracle.

by | Post ID: @Pcy3PgS-nzn

Oracle, or should I more accurately say his highness LE, totally missed the transition to cloud and is now in a painful death spiral of laying people off and pretending to generate cloud revenues. There in no future here for either employees or shareholders. Get the F:k out while you still can.

by | Post ID: @Pcy3PgS-epl

Not exactly, our good products like database and netsuite will save the day, Agree that change has been badly managed, just firing employees and losing institutional knowledge and customer relationships is already hurting. How about losing some execs now who made poor product decisions in the past. Too many managers themselves too seriously trying to drive change and running everything aground.

by | Post ID: @Pcy3PgS-fdj

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