circle the drain
I'm sure there are a lot of hardware companies out there that would love to have $900 million in revenues per quarter..
Oracle topped analyst expectations and continued its push into the cloud computing space with another strong quarter. Execs, talking to analysts on Thursday, were optimistic in the database and middleware titan's ability to continue to move from its massive on-prem empire to more cloud and service offerings. Just don't talk …
I've been a life-long ( 22 years ) lover of Oracle products but since having to get heavily into cloud tech and coming from an Oracle shop, I've fallen out of love with Oracle in a big way. They're tired and old, they're not really interested in new business, they simply want to snag existing customers who want to go off-prem but can't be arsed to deal with the headaches of dealing with someone like AWS. Even coming off big endian DBs and dropping them down to little endian to get them running on EC2 X86 instances is fairly easy with the tools already available from Oracle.
The biggest disadvantage Oracle have is that they're a one-trick pony, they only offer a small set of products on their cloud and their Solaris on cloud offering is ropey at best. Compare to someone like AWS or Azure, who have a ton of toys in their toychest, and all integreated to play nicely together, it makes Oracle's cloud offering look tired and old before it's even really got off the ground. Oracle's cloud is forever going to be second rate I'm afraid compared to the other players.
Because Oracle "Cloud @ Customer" is reckoned for in "Cloud" not in "Hardware" it might be skewing these numbers toward Cloud and making the hardware revenue number look more precipitous than it actually is. Makes sense because they don't sell the gear, but a subscription to the gear, but still a bit apples and oranges. Especially since the margins in cloud whether public or @customer are likely better and there is a more predictable future stream from a subscription than a one time purchase there is likely no panic over the on-prem decline. Oracle from day 1 of the Sun acquisition has de-prioritized general purpose on-prem in favor of engineered and now cloud systems. They were never looking to expand and grow that particular business of running other people's software on their gear/OS that Sun was so successful at for a long time.
"Most of what is in our revenue base did not come from our on-prem user base," Hurd said. "We are hopeful we will start to see a higher percentage of Oracle's user base moving."
So they want to lease hardware in place of selling it?
Their lowest SPARC offering today is 4.4 million percent faster than what was using when I first built a version of the current systems for my employer. Even though the new machine is a quarter of the price, I simply don't need that kind of performance. What I do need is a small telco ruggedized server appliance. While I would love to have the new SPARC processor's features like encryption and compression between the CPU and RAM, I don't Need it.
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