Thread regarding Oracle Corp. layoffs

Oracle doesnt have customers, it has hostages

Oracle doesnt have customers, it has hostages. While this is not a new phenomenon, what is new is that there are big tech companies who have large successful practices that essentially perform jailbreak operations for these customers. Oracle used to be unassailable in the enterprise database world, now it faces competition from many different areas, from solid Open Source performers, to things like AWS Aurora, and keep in mind that of all the AWS Services that have ever been offered, Aurora is THE most popular and fastest growing service. Azure's most popular service is the database migration service, where customers are gleefully fleeing the embrace of Oracle for, of all things - MS SQL Server, what was formerly an uncompetitive product against Oracle but matched with Azure is quite attractive. This kind of explosive growth for Aurora and Azure-SQL can only come from one source - Oracle Hostages who have made a break for freedom.

When you see 20-30% quarterly growth in AWS and Microsoft, you must understand that those numbers are not just coming from new business of internet startups, those numbers can only come from one source - a legacy software vendor that is in collapse and the legacy software company that you see with most tepid growth - is Oracle. Those big numbers at AWS represent the good ship Oracle as she slips beneath the waves, joining other formerly great companies like HP.

Oracle's 'missing the cloud' is akin to what would have happened if Oracle had not adapted to Linux and COTS servers in the early part of this century, it would have been a disaster, a disaster that looks very similar to the current disaster.

Oracles current "Beatings will continue until morale improves" strategy is doing nothing but accelerating the growth of AWS and Azure at the expense of its own bottom line. LJE and his famous blustery ego allowed Jeff Bezos to steal a march against his company for almost a decade before he finally decided that yes, cloud was important after all. In the near future, MBA's will write term papers about how Oracle went from the top of the market to a husk of its former self not just because it refused to innovate due to complacency, but instead decided of the rather unwise strategy of abusing its customers.

The board of Oracle needs to come to an understanding that LJE is 73 years old. Larry Ellison spent the better part of the last decade allowing Jeff Bezos to build a gigantic compute machine that lives primarily off of the mistakes his own leadership has created. AWS made a billion dollars last quarter - not in revenue, but profit, cash in the bank, profit and they made it by mining former oracle customers who dont like being held hostage.

The board needs to recognize that MH is good at one thing, turning formerly great companies into smaller less successful companies. He did it at HP and he's done it again at Oracle. If youre in the need for an executive who knows how to downsize a company and make it look like growth - MH is your man. The market needs to recognize that without a significant change in executive leadership, the former dominant player in databases and applications is no longer worth the candle. Employees at Oracle need to understand that the best they can hope for at this point is an acquisition by Google or remaining a niche player with tepid growth, looking back on its glory days and wondering where it all went so horribly wrong.

My answer to them is it went horribly wrong in 2009 and almost decade later, its still going wrong.

"Next Slide"

Excellent post by @TH3WTE6-ywg, deserved to be on the front page.

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Post ID: @OP+TM22OWk

8 replies (most recent on top)

It's folly to think that Oracle would succeed as a "cloud" vendor, or much of anything else, other than the DB.

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Post ID: @2qwp+TM22OWk

There was a myriad of decisions that killed Sun. Stopping dev of x86 Solaris right before the Linux boom. The great pony boy OS giveaway to sell hardware fiasco. To name just two. In 1998, Sun was on top and growing, and those blunders to be in the future. Customers loved the product, the company, the leadership and the customer service. It was folly to think that a company like oracle would succeed as a hardware vendor.

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Post ID: @2jnf+TM22OWk

It is true that Sun was almost dead when Oracle bought it - but consider this:

When Oracle bought Sun, Sun had just launched a commercial carrier grade IaaS platform that was hosting live paying customers and was the most popular system in Suns portfolio.

Oracle stopped the project shortly after the acquisition was complete, saying they didnt want to be in the same business as Amazon, which to be fair in those days was still unproven and few could see where it would eventually lead, That year, LJE famously ranted around on stage at Oracle-world making fun of cloud and business in the cloud. For the next three years, all internal cloud projects foundered in quiet exile.

Most of the people who worked on that project at Sun now work for AWS or several other leading cloud vendors. Good, smart, talented people, all clearly ahead of the curve on cloud, all of which remain successful today.

How much of Oracle history would have been different had that single decision not been made? Where would Oracle be today had it been competitively in IaaS for last 10 years?

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Post ID: @1kcl+TM22OWk

"“customer first” was the leading value in a list that also included “financial success” and “fun” back in 1998 at SUNW. As it should be. "

FWIW, Sun was about to fold before Oracle bought it.

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Post ID: @1nzi+TM22OWk

“customer first” was the leading value in a list that also included “financial success” and “fun” back in 1998 at SUNW. As it should be. Oracle always put financial success first and customers last. It will be a pleasure to see them go down in flames.

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Post ID: @1bpy+TM22OWk

Great post! The first Amazon leadership principle is "Customer Obsession". The description is

"Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers." This is far cry from how Oracle treats its customers. Perhaps the executive team could learn something here.

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Post ID: @1pee+TM22OWk

LOL HaaS.

AaaS - Audit as a Service

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Post ID: @oys+TM22OWk

HaaS - hostage as a service. What’s next? Bondage as a Service? Bet you LE and MH would love that

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Post ID: @vey+TM22OWk

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