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Oracle's Bad Quarter Is Self-Inflicted
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DDURBIN1
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DDURBIN1,
User Rank: Ninja
3/22/2013 | 4:41:31 PM
re: Oracle's Bad Quarter Is Self-Inflicted
I like how the CFO blames sales execution for Oracle's short fall and problems. It couldn't be Oracle's pricing and licensing tactics.
D. Henschen
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D. Henschen,
User Rank: Author
3/22/2013 | 5:32:21 PM
re: Oracle's Bad Quarter Is Self-Inflicted
Do you think quotes from the CFO bashing the sales team's performance will improve the morale of those who have to turn this sales deficit around? Another gaffe from Catz, who infamously once crowed about how much profit Oracle reaps from customers. Not terribly sensitive.
Tony Kontzer
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Tony Kontzer,
User Rank: Apprentice
3/22/2013 | 7:05:15 PM
re: Oracle's Bad Quarter Is Self-Inflicted
Here's my take as a writer who's covered Oracle, attended their OracleWorld user conferences several times (including the past 3) and has even written for their magazine, Profit: It's a sinking ship. A slowly sinking ship, to be sure--it's too big and mature of a company to just implode--but a sinking ship, nonetheless. I think all of the reasons cited by Doug, and more, are in play: nimble, innovative competitors; shifting market demands; a confusing and unconvincing cloud strategy; questionable decision making; misguided acquisitions; poor execution; lack of focus; etc. But in my opinion, one quality is eroding Oracle's standing in the market more than anything: arrogance. You can see it in Catz' comments, and it's long oozed out of Larry EIlison and trickled down through the organization. And all the pro-Oracle Forbes by-lines in the world by the aforementioned Bob Evans aren't going to change that. (Sorry, Bob, if you're reading this--speaking as a journalist, those pieces, while written with your typical aplomb, just strike me as icky.)

I think a comparison of OracleWorld with rival Salesforce's Dreamforce conference tells me everything I need to know: While Salesforce customers are exuberant cheerleaders for a vendor they've grown to love (Marc Benioff clearly can be arrogant, but he comes off as someone who really cares about his customers' best interests), Oracle customers are zombies in comparison. They come off as resigned to their fates; they're just marking time until they can rid themselves of the burden of Oracle technology and switch to something more nimble and less expensive.

Tony Kontzer
InformationWeek Contributor
ANON1255127307101
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ANON1255127307101,
User Rank: Apprentice
3/22/2013 | 8:22:18 PM
re: Oracle's Bad Quarter Is Self-Inflicted
Oracle is representative of the dead wood in the enterprise IT space. These players are generally more interested in their own success than that of their customers - their business models are going to implode. The enterprise IT space is full of corporations who think it is their God-given right to raise prices and maintenance fees some astronomical amount every year. They force "clients" (ahem) on an upgrade cycle that meets their financial goals needed to enrich executives and Wall Street. The cost of upgrades and keeping pace for clients is astronomical. The necessary change disciplines, code mods, interface changes, hardware upgrades OS upgrades, etc are astronomical to stay on these cycles.

This is an unsustainable rentier business model that has no long-term proven success. Globally customers are already in arrears huge amounts of money in these upgrade cycles. Soon, they will also reject the maintenance cycles as they are charged higher amounts for maintaining legacy code. Then what? Das ist kaput.

Oracle in their ginormous arrogance is a long term short.
cburns007
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cburns007,
User Rank: Apprentice
3/23/2013 | 7:39:06 AM
re: Oracle's Bad Quarter Is Self-Inflicted
Hurd was a disaster for HP. Let's never forget this fact. Those of us at HP saw a once great company crash and burn as Hurd led the way slashing and cutting everything to save a dime. His call for "pull it forward" every financial month end was met with what are you doing this month when the next month came around. The guy in connected, ruthless and stupid. A bad combination.
He is now doing the same for his buddy at Oracle. Those who don't learn history are bound to repeat it.
nannasin28
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nannasin28,
User Rank: Apprentice
3/25/2013 | 7:51:42 AM
re: Oracle's Bad Quarter Is Self-Inflicted
The cost of upgrades and keeping pace for clients is astronomical. 74HC595
EntSoftExec
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EntSoftExec,
User Rank: Apprentice
6/3/2013 | 3:27:06 PM
re: Oracle's Bad Quarter Is Self-Inflicted
I think Doug is on to something here. Let's face the issue squarely...hiring thousands of sales people while trimming the sales support that makes the complex enterprise sale possible is beyond short-sighted. Moreover, blaming the sales force for the miss is both misguided and narcissistic. The overriding emphasis on new sales people highlights a belief system at odds with the strategy that drove Oracle's phenomenal growth over the last decade. I sincerely hope that Oracle doesn't go the way of HP for the sake of the shareholders and all of the great people in the company.


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