Content |
Company White Paper: Oracle
- Oracle Cloud - Public Cloud
- Oracle Cloud Platform is a scalable application consolidation platform.
- Oracle Database Cloud Service
2021: Mass departure of leaders due to a "culture of fear"
In early June 2021, details were revealed about the attitude of Oracle Cloud Infrastructure CEO Clay Maguirk to his subordinates. Sources at Business Insider claim that Maguirk's leadership style includes insulting, humiliating and suppressing colleagues and employees, and a culture of fear reigns in the cloud division.
Magowirk's leadership style was mentioned in a pair of lawsuits filed by former vice presidents of Oracle Cloud Infrastructure against the company and its chief executive, including a claim that Maguirk once told a senior executive that his actions were "damn stupid" in front of all senior management of Oracle Cloud Infrastructure. One of the former vice presidents suing Oracle committed suicide in April 2021.
One of the sources in a conversation with Business Insider noted that the case mentioned in the lawsuit rather mildly reflects reality. Maguirk preferred to insult employees in a large group, rather than in private, "adult men were brought to tears." In an upset state, the head of Oracle Cloud Infrastructure could insult both personally and professionally.
In total, more than 10 current and former Oracle employees and executives said that Oracle Cloud Infrastructure has what is called a "culture of fear." Maguirk is known for trying to achieve results by "suppressing" employees emotionally.
In total, Oracle's cloud division employs more than 10 thousand employees. Some workers agreed to speak about the style of Maguirk's leadership on condition of anonymity due to fears that statements could negatively affect their careers. Oracle declined to comment on Maguirk's actions or Oracle Cloud Infrastructure culture.[1]
2020
Oracle launches first data center in Chile
At the end of December 2020, Oracle launched the first data center in Chile, so that customers and partners of the company from Latin America gained regional access to many Oracle cloud services.
 | The new data center will not only improve the quality of service for our customers, but will also have a positive impact on the country's innovative ecosystem and help stimulate the digital economy, "said Oracle Latin-American Executive Vice President Luiz Meisler. |  |
Oracle chose Chile as a strategic region because the country was a pioneer in the adoption of public cloud services with high customer demand. Investments in Chile's cloud infrastructure are expected to grow by 41% by 2024, much faster than in other regions of Latin America.
The new cloud region will provide Oracle Cloud services, including Oracle Autonomous Database, Kubernetes, Oracle Cloud VMware, Oracle Cloud Infrastructure and Oracle Cloud Applications services. Many benefits will be enjoyed by customers working in highly regulated industries with restrictions on access to servers outside the national territory. In addition, the opening of the first Oracle data center in Chile will have a positive impact on other Latin American countries, such as Argentina, Peru, Uruguay, Paraguay and Bolivia.
Oracle Chile Cloud includes several independent domains, which will allow customers to deploy applications with high availability, as well as connected to a separate site in São Paulo (Brazil) and to other Oracle cloud centers through a private high-speed Oracle Cloud environment. This will allow organizations to deploy cloud services to several independent regions for disaster recovery, as well as host and store all transactional data in this region.[2]
Oracle convicted of coercion and bribery of customers to develop cloud business
In February 2020, the German company Union Asset Management, which manages assets (their total size exceeds 359 billion euros), sued Oracle, accusing the American IT giant of "systematically coercing and bribing" customers in order to develop its cloud business.
Oracle founder Larry Allison, the late ex-CEO Mark Heard, head Safra Katz and former head of Oracle's cloud division for cloud technology Thomas Kurian appear as accused in the lawsuit. Each of these people, according to the plaintiff, were "strongly motivated in deceitfully inflating cloud revenue using tailored transactions (in order to artificially inflate the value of shares)." As a result, the company "deceived investors about the true sources of an extremely important stream of cloud revenue, their nature and quality."
The authors of the complaint also say that Oracle was late in selling SaaS and IaaS solutions, so the company was under pressure from shareholders who wanted to rapidly grow the cloud business and attract large customers.
Under these pressures, Oracle decided to resort to a strategy called Audit, Bargain, Close (ABC; Audit, Exit, Deal Conclusion). The company installed its software in the client ecosystem with pre-activated settings, because of which the customer, not knowing it, violated the terms of the license.
| | After the customer fell into this trap, Oracle began auditing local software for license violations. When they were, Oracle began to threaten with large fines. Then the company proposed reducing or abolishing fines in exchange for the client agreeing to purchase a short-term cloud subscription, which he did not want to use, according to a 164-page court document. | |
The lawsuit also cites an internal email that Thomas Kurian sent to other senior executives. The top manager complained about the Oracle Human Capital Management Cloud interface and asked to correct all shortcomings as soon as possible so as not to lose customers.
| | I want to make sure that the entire HCM development team understands that your user interface is a shame, you need to admit it. Two CEOs and Larry Allison still put a lot of pressure on me, who say that the interface is illogical. The key product interface is terrible. Until you all together recognize the mess that you made and the need to move quickly, we will just talk about nothing, "Kurian said in a message. | |
The then head of the cloud business said that Oracle lost a large client - the Dutch bank Rabobank - only because of the terrible interface.
Oracle says the complaint is largely based on reports from the press and from analysts, and therefore it is "meaningless," and the company will defend itself in court.
Representing Union Asset Management, lawyers argue that Oracle should have disclosed its methodology called ABC in accordance with strict financial reporting rules for ASC 605-25. In addition, it is reported that Oracle management earned on the sale of shares at inflated prices, which were established due to misinformation of investors about the performance of the cloud business.
The lawsuit was filed in federal district court in California, and this is the third complaint. The first two judges rejected, finding the prosecution's evidence insufficient, but he retained the possibility of submitting a new statement when convincing evidence appeared.[3]
Oracle launches new data centers in 5 countries
In early February 2020, Oracle announced the opening of new cloud data centers in five countries. The data centers were earned in Jeddah (Saudi Arabia), Osaka (Japan), Melbourne (Australia), Montreal (Canada) and Amsterdam (Holland).
The company expects that by the end of 2020 its data centers will be in 36 regions, compared to 21 by February 4. In particular, it is planned to launch new data centers in Saudi Arabia and the UAE.
According to Clay Magouyrk, executive vice president of cloud development at Oracle, the new data privacy rules in the European Union and elsewhere suggest that many companies should store data in the country where they are created, so it is important to offer them a wide selection of locations with data centers.
Oracle strives to ensure that in each country of the company's presence there are at least two "regions" (the geographical area of the location of one or more data centers), one of which is the main and the second - the reserve.
According to SiliconANGLE, Oracle became the first provider of public cloud services with data centers in Saudi Arabia. However, the cloud business of the American company is smaller than that of competitors. So, Microsoft has data centers in 56 regions, Amazon Web Services (AWS) facilities cover 22 regions and 66 so-called "accessibility zones."
According to 2019 Forrester Research analysts, Amazon Web Services and Microsoft are the largest cloud service providers, taking about two-thirds of the global market. Oracle share is not specified.
Oracle is focused not only on expanding the geography of data center launch, but also on collaborating with other cloud companies to provide a "unique multi-cloud interconnect," said Oracle Director of Product Management Andrew Reichman. In particular, such an agreement is valid between Oracle and Microsoft.[4]
2019
How Oracle sells products that are not available
In early December 2019, former Oracle cloud project manager Tayo Daramola sued the company, claiming that it sold non-existent or defective products as part of a cloud service intended for universities. Daramola, who reported fraud, lost his job and is now trying to sue the American IT giant for compensation. More details here.
Recruit about 2,000 employees to expand the cloud business
On October 8, 2019, Oracle announced the recruitment of about 2 thousand specialists for its cloud business. The new personnel initiative is global in nature and is designed to launch cloud services of an American company in those countries where they were not previously available.
Oracle has created jobs related to business operations, software development, and cloud infrastructure maintenance.
| | Cloud computing is still in the early stages of development. So far, their penetration is less than 20%, and companies are just starting to use clouds for critical workloads, "says Don Johnson, executive vice president of Oracle Cloud Infrastructure. - Our active recruitment and growth plans are designed to meet the needs of our customers, providing them with reliability, high performance and security as they migrate to the clouds. | |
Engaged specialists will create and launch cloud services around the world. Oracle intends to open 12 new cloud regions in addition to the 16 that the company has by October 2019. By the end of 2020, it is planned to increase the number of such regions by 20 and bring their number to 36. They will be opened in Chile, Japan, South Africa and the United Arab Emirates, as well as in other countries of Asia and Europe.
A region refers to a set of data centers deployed within a geographical area and connected to each other by a dedicated regional network with a low delay. In other words, customers in a particular region can get faster access to cloud services than if it were carried out from data centers far from them.[5]
Integration of Microsoft and Oracle Cloud Services
On June 5, 2019, Microsoft and Oracle announced the close integration of their cloud services. With this collaboration, companies seek to attract more large customers and confront Amazon, the leading cloud market. More details here.
Why are customers afraid to switch to Oracle cloud services? The company is forced to reduce personnel
At the end of May 2019, it became known about layoffs at Oracle. The reductions may be due to company problems in the cloud computing market. Customers would like to start using clouds, but are afraid to choose a competing product.
Users of Oracle products installed on computers would like to move the software to the cloud infrastructure, but many of them are afraid to choose competing services and therefore postpone migration. Customers fear data loss during and after migration, server failures, hacker attacks, etc. However, most customers are afraid of Oracle's "audit" if they use competing cloud services, such as Amazon Web Services.
Audit refers to the audit that Oracle conducts to identify violations of the license agreement. If the manufacturer finds them, it can fine the client or completely prohibit the use of Oracle software.
This is stated in a study by Apps Associates, which is a partner of Oracle and Amazon Web Services. In different countries, 300 IT executives working in large companies were interviewed (their annual revenue is from $100 million to $5 billion) and using low-cost Oracle applications.
The terms of contracts with Oracle and other major IT vendors are often very complex. Therefore, a whole consulting industry has appeared, called software asset management. Providers of such services help companies conclude contracts with software manufacturers, avoid audits and fines.
58% of Apps Associates survey participants said that they are strongly or to some extent concerned about revocation of software licenses in case of use of cloud services not from Oracle.
55% of respondents are afraid of an audit, and almost half of respondents are afraid of the termination of Oracle technical support, which usually includes troubleshooting a failure, as well as providing updates and patches to security errors.
App Associates experts recommend that Oracle customers thoroughly study the terms of contracts and look for items on the use of other cloud services. However, the technology giant intentionally makes its contracts vague and difficult, which provides it with advantages in case of controversial situations, they say.
According to Business Insider, about 300 employees of the Seattle office, which for Oracle serves as one of the main centers for cloud product development, fell under the reduction. These layoffs were part of a large-scale personnel purge that affected several thousand workers, including members of cloud teams.
The liquidation of working positions in Seattle turned out to be noticeable, since these specialists relied heavily on Oracle in the cloud market. Business Insider writes that Oracle's cloud division has a not-so-favorable working environment, as teams in Seattle and San Francisco are in conflict with each other. In particular, they are fighting to get the equipment necessary for the operation of cloud services. It takes weeks, and sometimes months, to supply this equipment, the company also reduces the cost of it. In January-March 2019, Oracle's equipment purchases decreased by 14% compared to the same period in 2018.
According to the GeekWire portal, for many years Oracle has announced its ambitions to compete with Amazon Web Services (AWS), Microsoft Azure and Google in the field of infrastructure for cloud services. However, it did not make significant progress in achieving this goal and in 2018 ceased to disclose the indicators of the cloud business amid a slowdown in its growth. There is one important problem.
2018
How Oracle sellers earned $1 million percent from cloud deals
In August 2018, new details of how Oracle imposed its cloud products on customers became known. Some sales managers were frankly impudent.
One of the sales people at Oracle who worked for the company for several years told Business Insider about the "proven" scheme used by employees to implement cloud services and receive rewards tied to these products.
Staff forced customers to buy cloud solutions, even if they were not required. For example, customers were offered discounts that reduced the total value of the contract even after including unnecessary clouds.
It is noted that this was a common practice when products were sold in kits. Customers tested them for free and then could conclude full-fledged contracts. And so did other cloud providers.
| | Every week, thousands of transactions were concluded in which customers bought more than they needed, "said an Oracle employee. | |
There was another method of stimulating cloud sales, practiced at Oracle in 2014-2015. It could affect the company's results in fiscal year 2018 and be one of the reasons that prompted Oracle to stop publishing cloud revenue.
This was told by former Oracle Vice President Craig Guarente, who by August 2018 heads the company Palisade Compliance, specializing in the supply of Oracle software, license management services and technical consulting. Oracle earns three times more on support and license renewal services than on the sale of new products. The company binds customers to such its services through strict conditions in contracts, Guarente says.
However, customers could opt out of often unnecessary (all or part of) support services. To do this, they were invited to buy cloud services in exchange for discounts on software. Typically, contracts were for three years, and based on discount, customers paid less for them than if they used software and support services without buying access to Oracle cloud infrastructure.
At first, Oracle sellers proposed replacing support services with one-to-one cloud services. That is, for every dollar saved on software services, the client had to transfer one dollar to the account for using cloud solutions. Then the requirements were raised: each dollar for technical support was equated to two "cloud," indicates Craig Guarente.
If the customer does not want to use Oracle cloud computing, then after the expiration of contracts, cloud revenue ceases to flow to the company's balance sheet. Moreover, according to Business Insider interlocutors, many cloud contracts signed under duress did not ultimately result in the fact that customers really began to use cloud services.
In 2018, Oracle unexpectedly changed the structure of financial reporting and combined the revenue from sales of cloud services and traditional software installed on user computers into one line. Thus, the company stopped publishing cloud revenue, which has become critical for the future of the American vendor, the publication notes.
One of Oracle's chief executive officers, Mark Heard, called the changes in financial reports "insignificant" and explained them by the introduction of new accounting standards.
An Oracle employee in a conversation with Business Insider expressed confidence that the new reporting structure is designed to hide the fact that not all cloud revenue includes cash receipts from customers who really use Oracle Cloud.
According to the employee, some sales specialists could earn $500 thousand and even $1 million by imposing unnecessary cloud services. As for managers, they often either did not know when such transactions were made or looked at them through their fingers. Craig Guarente said top managers "hated" such deals for obvious reasons.
At the same time, one Oracle employee claims that some executives, risking their careers, forced their subordinates to enter into unfair transactions with customers in order to fulfill the plan. If they did not agree to this, "their life could become hell." For example, naughty employees could be sent to other departments or units located in other cities. Or managers began to get very close to them when concluding contracts, as a result of which it became impossible to work at Oracle.
According to Business Insider, in August 2017, Executive Vice President Rich Geraffo, responsible for selling Oracle products in North America, sent a letter to his subordinates demanding that they stop unfair practices when selling cloud products.
Geraffo stated the need to "conclude contracts honestly" and outlined a long list of what sales professionals can categorically do. They were allowed to sell only the software and services that customers would actually use. In addition, sellers were obliged to document all the terms of the transactions and justify the discounts provided to customers.
Oracle said that the company prohibits the practice in which payments for software support decreased due to transfers for Oracle Cloud services.[6]
Oracle sells cloud services with coercion and threats
In August 2018, Oracle shareholders filed a class action lawsuit in which they accused the company of providing deliberately false information regarding the performance of its business. The plaintiffs claim that the enterprise software manufacturer imposes its cloud services on customers and lies to investors.
In a lawsuit sent to the court in San Jose (California, USA) said that, talking about factors contributing to the growth of the cloud business, Oracle management pointed to an "unprecedented level of automation and cost savings" that allegedly provide the company's services.
In fact, the corporation used coercion and threat tactics to implement cloud products, resulting in an unsustainable business model that ultimately failed.
| | The use of such tactics hid the lack of real demand for Oracle cloud services, which makes growth unstable, and ultimately led to the loss of customers, according to the lawsuit, which was joined by several large investors, including the City of Sunrise Firefighters pension fund. - Among other things, the company threatened its customers with an "audit" of the use of low-cost software licenses and reduced technical support, unless they agreed to transfer their business to Oracle cloud programs. | |
The plaintiffs claim that this tactic was not known to investors, and Oracle itself categorically denied its use. Top managers lied in their statements at investor conferences and during conference calls after the publication of financial results, when they said that customers were quickly introducing cloud products, and Oracle's revenue from this business was growing faster, the plaintiffs said.
Due to the use of unscrupulous methods of selling their products, according to the authors of the lawsuit, investors lost money after Oracle published financial results and a forecast below expectations in March 2018.
Oracle spokeswoman Deborah Hellinger told reporters that the lawsuit has no evidence on the merits, and the company will defend itself against these unsubstantiated allegations.
Until the fourth quarter of fiscal year 2018, Oracle regularly disclosed revenues in various segments of the cloud market. After the company stopped publishing this data, its shares fell in price.
In June 2018, the Financial Times wrote that over the past year, the growth rate of Oracle's cloud business, which accounts for about 15% of the company's revenue, has halved. This led to a series of downgrades in Wall Street earnings forecasts.
One of Oracle's chief executive officers, Safra Katz, explained to investors that the company changed the financial reporting structure due to the transition to a new business model that blurs the boundaries between cloud computing and traditional software installed on client computers.
The corporation introduced the so-called practice of using its own license (BYOL). It assumes that customers continue to use the traditional software distribution model (making advance payments for product licenses and then regularly paying for support services) and retain access to the software through the cloud.
| | I mean, right away, we're not hiding anything... We have no bad news, "Katz said at a conference with analysts, answering questions about the cessation of publication of cloud business indicators in June 2018. | |
She said that in March-May 2018, Oracle's cloud revenue reached $1.7 billion.[7]
Oracle - Trump: Pentagon cloud state contract sharpened under Amazon
In April 2018, it became known about a conversation between General Director Donbass Safra Katz and US President Donald Trump about the Pentagon's multibillion-dollar cloud contract. She complained that the tender was imprisoned under Amazon. The head of state, who has repeatedly expressed a negative attitude towards Amazon, promised fair bidding. More details here.
2016
Ex-accountant's accusations of overstating cloud revenue
On June 1, 2016, the former accountant of Donbass Svetlana Blackburn sued the company, accusing it of illegal dismissal due to unwillingness to participate in rigging financial results in the cloud business, reports Reuters.
The lawsuit was filed in the District Court in San Francisco. In her complaint, Svetlana Blackburn said Oracle executives required her to "insert square data into round holes" to improve the performance of Oracle Cloud Services. More details here.
Claims of cloud business growth by 36% to $2.85 billion
The decline in sales of traditional Oracle software and equipment according to the results of fiscal 2016 contrasts with the strong growth of the cloud business. Its volume in 2016, according to reports, rose by 36% compared to 2015 and exceeded $2.85 billion. This includes sales of SaaS, PaaS, and IaaS products.
In March-May 2016, the number of Oracle customers using the company's SaaS solutions increased by 1,600. The number of PaaS users increased by more than 2000, said Oracle CEO Mark Hurd.
Oracle Chairman Larry Ellison said the "hyperrost" of the SaaS - and PaaS business, which took place in fiscal year 2016, will last in the next years, allowing the company to become the first cloud company with revenue of $10 billion in the SaaS and PaaS market.
2015
The scandal with the eviction of tenants for the cloud center in Texas
On December 23, 2015, former residents of the 295-apartment economy-class Lakeview Apartments residential complex in Austin (Texas, USA) staged a protest against the unlawful eviction, which took place at the initiative of Oracle. About this writes the online publication PCWorld.
In December 2015, Oracle announced plans to build a completely new cloud development center with an area of more than 52 thousand square meters in Austin and buy the Lakeview Apartments building, which is planned to be reconstructed to accommodate employees of the new campus. As part of this project, the enterprise software manufacturer intends to increase its staff in Austin by 50% - largely to organize direct sales of cloud services.
However, the construction of the facility is accompanied by a major scandal. The fact is that back in June 2015, Cypress Real Estate Advisors, which owns the Lakeview Apartments building and places tenants on loan, notified them of the need to leave the apartment before September 30. In case of failure, the tenants were threatened with a power and water outage. As a result, about 100 low-income families by US standards were evicted.
Many of them have not yet expired, and Cypress Real Estate Advisors refused to return the money paid. According to some residents of Lakeview Apartments, they cannot find a new rented apartment at the same price that was in the past - the difference is measured in hundreds of dollars. In addition, 225 children were forced to change school and kindergarten.
Disgruntled people took to the streets of Austin in protest. They are asking Oracle and city authorities for help. According to Texas Rural Legal Aid lawyers, it was not Oracle that was to blame for the incident, but the owner of Cypress Real Estate Advisors, who quietly agreed to sell the property and did not help his tenants find a new residence.[8]
Ex-employee's revelations: Oracle imposes cloud products
In July 2015, it became known that Oracle imposes sales of cloud products even to those companies that do not need these solutions and do not want to purchase them. The aggressive policy of the American company was told to reporters by its former employee Craig Guarente.
According to him, Oracle customers who want to amend the contract (for example, increase the number of license users or add new services) are faced with the so-called audit of the contract, under which an American corporation can file a claim for non-compliance with the terms of the agreement and force to purchase its commercial cloud products as a punishment.
In case of failure, the client risks losing the ability to use Oracle software within 30 days. In many cases, switching from company to other solutions is very problematic, since it can take years. So the customer has to follow the terms of the vendor.
It is noted that an audit of any actions that do not meet the established requirements may cause Oracle discontent. As a result, the manufacturer forces the guilty companies to conclude long-term contracts for Oracle Cloud products, even if the client does not work with and does not need cloud services.
Oracle sales managers receive seven times higher deductions than other products for such imposed contracts, Guarente said. Oracle did not deny such a bonus scheme, but at the same time refrained from informative comments, limiting ourselves to the following phrase: "We have reward systems."
Craig Guarente worked at Oracle for 16 years, during which time he climbed the career ladder to the global vice president responsible for contracts, business practices and audit issues. In 2011, he founded Palisade Compliance, which provides advisory services in the field of Oracle software asset management.
According to Guarente, until 2015, Oracle did not show high activity in terms of imposing cloud products. In 2015, the company has already used this method of sales several times, said its former senior official, without specifying the names of customers who were forced to subscribe to the cloud offers of the manufacturer[9].
Plan to move most products to the cloud
April 24, 2015 it became known about Oracle plans to transfer almost all its products to the cloud. Thus, the American company decided to change its business model to correspond to changes in the market.
"We are still investing in a large number of traditional products. At the same time, we are moving with incredible speed to move all these currently available products to the cloud, "Oracle CEO Mark Hurd told Bloomberg.
As of the end of April 2015, about 65% of Oracle solutions are available in the cloud. By October of that year, it is planned to increase this share figure to 95%, Heard said.
Oracle chief says 95% of company's products will be cloud by October 2015
As noted in the publication of April 24, 2015, for many years Oracle built its business on the sale of contracts for its software installed in its data centers, earning from supporting this software. However, the company is increasingly turning to the online sales scheme, thereby competing with fairly young vendors such as Salesforce and Workday, as well as eminent players, including Microsoft and IBM.
According to the results of the third financial quarter, which ended on February 28, 2015, Oracle's cloud business, which takes into account the sale of SaaS, PaaS and IaaS solutions, brought the company revenue in the amount of $527 million, which is 29% more than a year earlier. For comparison, Amazon Web Services provided Amazon with revenue of $1.57 billion in the first calendar quarter of 2015.
"Our cloud business is growing much faster than I expected," Oracle Chairman Larry Ellison said during a March 2015 conference to publish the company's quarterly statements.
According to Allison, in 2015 Oracle will be able to earn more on the sale of SaaS and PaaS products compared to Salesforce.com.
Safra Catz, who after the resignation of Allison from the post of head of Oracle took this position with Mark Herd, says that by 2020 the company will be able to receive $5 million from each $1 million sales of PaaS solutions.[10]
Cloud Market Success Announcements
In mid-January 2015, Tech Pro Research published a note in which observers talked about Oracle's success, strategy and plans in the cloud market.[11]
According to journalists, the main tactic of conducting Oracle cloud business is to provide as many services as possible, including applications, platform and infrastructure. The integrated approach, also practiced by the competitor, SAP is bearing fruit.
For the first half of fiscal 2015, which ended on November 30, 2014, Oracle's cloud business approached $1 billion against $719 million a year earlier. In the SaaS and PaaS segments, company revenues grew by 36%, and sales of IaaS solutions jumped by 42%. The total number of cloud applications at the vendor exceeded 600.
Acquired assets play an important role in this rise. Oracle has absorbed such useful firms as PeopleSoft and Siebel. One of the biggest purchases dates back to 2014: then the supplier of information systems for retail and hotels Micros Systems was bought for $5.3 billion.
At the end of the same year, Oracle announced the acquisition of Datalogix, a technology developer linking consumer spending at traditional points of sale with digital marketing. Using the example of this transaction, Oracle showed how its cloud strategy works.
Oracle uses all of its tools to work efficiently
The company is committed to leveraging all of its tools for the best product performance - in the case of Datalogix to maximize the level of understanding of customers using digital and traditional channels, based on what they do, what they say and what they buy.
The president of Oracle on development Thomas Kurian during the performance at the forum Oracle CloudWorld in New York (on January 13, 2015) described the strategy of the company as follows: "To offer the business applications working in the browser, to any partner, the client and all in the world".
As of early 2015, three quarters of Fortune 100 companies are working with Oracle Cloud. Every day, more than 62 million customers of the American company use its cloud services, making over 23 billion operations, said Oracle Senior Vice President of the Cloud Business Shawn Price, adding that the company does not intend to stop there.
According to Price, Oracle intends to minimize the need for customers for consulting services, as well as simplify cloud deployment and interaction with the company during the entire period of cooperation.
2012: Top 3 Cloud Software Vendors Plan
Oracle wants to be one of the top three global cloud software vendors. This was stated by the head of the company Larry Allison in early October 2012, speaking at the Oracle OpenWorld conference.
According to Larry Ellison, the company is waiting for systematic organic growth in the cloud application segment, because Oracle has been actively developing and will continue to develop this direction in recent years.
So about 80 transactions for the purchase of other companies totaling more than 50 billion were closed. And dollars the result of these acquisitions was revenue from the segment in the amount of $31.6 billion in the first quarter of fiscal year 2013.
Larry Allison said in an interview with US channel CNBC that "over the next few years, senior management, up to individual programmers and sellers, is focused on one thing: sales of applications, platform and infrastructure in the cloud."
This priority of the Cloud segment is due to the fact that, according to company president Mark Heard, global data volumes will grow by more than 50 times by 2020, and most of them will be processed in the cloud, Reuters reported on October 3, 2012 . And to have time to take a more significant share in this booming segment is important for the company. Given the active development of Oracle in the direction of mobile applications, as well as applications for small and medium-sized businesses, the statement about the imminent entry into the TOP-3 cloud software providers, which Allison expressed, looks logical. Moreover, according to CFO Safra Katz, even if the company abandons its classic sales and moves only to provide cloud services, Oracle's net profit will not fall below $1 billion.
On October 5, 2012, at a meeting with analysts, Safra Katz said that the company plans to grow organically in the next 5 years by 20%, mainly due to the provision of cloud services. However, analysts consider such a forecast too optimistic. So Bloomberg analysts are confident that a more realistic plan will include growth in the next 5 years of no more than 10%.
The company also announced that in the near future it will focus on increasing dividends to its shareholders. However, despite cooling interest in M & A deals, after Safra Katz said, the company will not refuse an interesting offer if one appears on the market.
See also
Notes
- ↑ Oracle insiders say there's a 'culture of fear' in a key cloud unit, and executives are leaving
- ↑ Oracle opens first Cloud Region in Chile
- ↑ Oracle Sued for Allegedly `Systematically Coercing and Bribing` Customers
- ↑ Oracle opens new data centres in 5 countries, targets 36 by end-2020
- ↑ Oracle will hire 2,000 new workers to bolster cloud infrastructure business
- ↑ An Oracle insider explains how some salespeople gamed the system to sell more cloud
- ↑ Software giant Oracle accused of defrauding investors
- ↑ Oracle asked to help low-income residents evicted for its new cloud campus
- ↑ ixzz3hE0hw4Ib Oracle is using an ugly'nuclear option 'to boost cloud sales, says consultant
- ↑ Oracle CEO Hurd Plans to Lift Almost All Products Into Cloud
- ↑ Briefing: Oracle's cloud strategy and the points to ponder
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |