The bulk of the comments in here are focused on comparing Larry Ellison to a lawn mower, so I'll try a new tack and say that I'm genuinely confused at what the value prop of Oracle is.
Given the history of their business model being licensing of important databases that are hard to switch off of, I've actually made a point to avoid using Oracle as much as possible (even so far as to leave MySQL when they acquired it, and I've never started a fresh project in Java, which they used to drive a lawsuit they had with Google).
From my chair, they make an expensive database they try to sell to golf executives. There are innumerable equal (better?), free alternatives, and most startups are founded by broke coders in bedrooms that choose those instead and stick with the devil they know. And they have an un-competitive cloud service? Enlighten me on what I would use Oracle for, I'm genuinely curious.
Short answer: today I think there is genuinely nothing that anyone should use oracle for, but their database used to be seriously far ahead of the competition.
A very long time ago (circa 2000) there were basically 2 databases that worked for use cases where you needed high availability and vertical scalability and those were Oracle and Sybase and Oracle was really the only game in town if you actually wanted certain features like online backups and certain replication configurations.
At the time, MySQL existed and was popular for things like websites but had really hard scalability caps[1] and no replication so if you wanted HA you were forced to go to oracle pretty much. Postgres also wasn't competitive above certain sizes of tables that seem pretty modest now but felt big back then, and you used to need to shut postgres access down periodically to do backups and vacuum the tables so you couldn't use it for any sort of always-on type of use case.
Oracle also had a lot of features that now we would use other free or cloud-hosted services for like message queues.
[1] in particular if you had multiple concurrent readers they would permanently starve writers so you could get to a situation where everyone could read your data but you could never update. This was due to a priority inversion bug in how they used to lock tables.
We were building a payments system in the early 2000s and got a diktat to not use Oracle. The amount of things we had to build to satisfy the availability and durability requirements were so huge it consumed the first few years of work. We didn’t get to the business side of things until much later. Funny thing is we ended up giving up on MySQL and went back to oracle after all that work. The whole thing was scraped after a couple of years.
To get to the level of scale that oracle can handle we had to build sharding and cluster replication from scratch. It still didn’t get to even 1/10th of a single oracle node. Obviously we made a lot of poor architecture decisions as well - in hindsight, of course.
Oracle buys smaller enterprise companies with rich customers that were already using Oracle DB, or makes them rely on it, then cashes in on licensing.
So for example, they bought Micros (most EFTPOS terminals in the world are powered by them, I think), they bought Cerner (big supplier of IT to healthcare companies), they bought PeopleSoft. If your big company isn't using SAP, it's probably using that. Mundane but essential things for large businesses: CRM, ERP, payroll/HR.
So that's what you'd use Oracle for. Or perhaps you wouldn't use Oracle, then Oracle would buy your IT supplier and either you have to change your IT supplier (costing you millions) or congrats you're an Oracle customer now.
Oracle and Java are deeply embedded in US gov work. How deep? Let's just say a large number of classified developer jobs hire for Java. Ellison has been a huge proponent of a surveillance state, and that likely ingratiates him with certain three letter agencies.
The only developers I know who write Java full time work in systems that take pictures of things from far away.
There's more to it than just pure databases. They have a pretty large vertical of SaaS apps, specifically ERP. Oracle Saas (their ERP platform) is used by thousands of customers - these are systems implemented with SI's and run super critical functions like payroll, manufacturing, etc really hard to rip out once they're put in place. This has been fueling their growth for some time, and seems like OCI is picking up now from a pure infra POV. But yeah I don't think I'd ever use any Oracle components voluntarily or at the very least find ways to have exit paths
Oracle database has unparalleled scalability. Ask someone who works at Microsoft SQL Server division what their bug database looks like. They will tell you that a single SQL Server instance cannot scale to the entire SQL Server division. Oracle on the other hand has a single database for the entire company. No other database is this scalable.
But Oracle is not just a database company. Oracle started as a database company, but today they are more an applications company than a database company. They have ERP back-office applications (finance, operations, HR), and CRM front-office applications (sales, marketing, service). Oracle bought a large number of applications software companies such as Seibel, PeopleSoft, JD Edwards, NetSuite and Cerner to become this big.
Of course Oracle is also a major cloud services provider and provide AI superclusters, and GPU instances from NVIDIA and AMD (context for today's layoffs).
I think the big use case for Oracle products are for businesses that are not in the IT space. A lot of reasons for this, a big one is the breadth of Oracle's products is very solid and, similar to Microsoft, you can be sold on Oracle solving all your database needs across your business: HR, asset management, customer relationship stuff, your actual business, all with a single vendor. Non-IT management will be told that it all integrates seamlessly, you don't need to hire IT staff dealing with software from 10 different vendors, just the one.
For instance, I work in the utility industry. They offer specialized utility-specific software for managing data from our meters, our customer and billing system, asset management, HR, accounting, reporting from all these systems. Even more specialized stuff exists that we don'tbuy. No doubt if you had a different use case, Oracle would sell us on their ability to handle it. I think this is the model they follow. They are not trying to sell to startups, tech platforms, software companies, etc. They are trying to sell to your bank.
The comments on this subthread are a bit out of touch in a very coastal-tech way -- yes, Oracle is a monster, yes, their tech is garbage, yes, their products are awful.
But Oracle owns Cerner Health (now Oracle Health, but to most users it is still Cerner), i.e. 25% market share of the EHR space, and PeopleSoft, which you are painfully familiar with if you work for a bigcorp or anywhere in the public sector in North America. Their database product is very far from their only LOB.
You would use it to keep your job when your company goes with it against all technical recommendation due to the push of a higher up that wouldn't let the idea go for stupid or suspicious reasons.
I actually sat through an Oracle sales presentation around 1999 (I was the product engineer, along with company executives) and honestly it sounded pretty good. At the time we were using Lotus Notes for a database so even pencil and paper would have been better. Oracle absolutely was the market leader and there was no doubt about its technical chops. Oracle Parallel Server could run active-active across two sites separated by many miles of fibre, which was a remarkable thing to do back then.
Oracle came back with a quote that was so far outside what our company could afford that we went with Informix (not a cheap database). Pretty lucky escape.
A year or two later I ported the whole stack to PostgreSQL and it worked absolutely fine since we didn't have that much scale. Unfortunately when I left the guy who took over was a huge Informix fan so he deleted all the PG code and went back.
I didn't save the tweet I saw it in but I saved the joke - "I wish I had enough money to run Oracle instead of Postgres." "Why do you want to do that?" "I don't, I just wish I had enough money to."
They sell to cash-rich organisations who are a bit clueless about technology and so can't or wouldn't want to either roll their own, or go with a better but smaller provider?
e.g. I was unsurprised when I spotted that Novartis (no connection, btw) was deep in with Oracle. Big pharma, lots of money, typically-clueless-big-org-IT-leadership, etc.
I think saying that Oracle is a provider of database software is something that you hear from old technical folks who have not used Oracle since the 90s. In fact Oracle's revenue from database software is very tiny. Much of their revenue comes from enterprise and cloud software.
If you are a publicly traded company who needs to report audited financial results every quarter to shareholders, there are less than 10 ERP software in world for that and Oracle owns 5 of those - Fusion, PeopleSoft, Netsuite, JDE and EBS.
Also, in the last decade a big chunk of their revenue comes from cloud services where these enterprises move away from their physical hardware and onto the cloud. Here also, Oracle provides one of the most generous free limits compared to GCP, AWS and Azure. Also they provide some unique options that I have not seen in any other clouds like Bring Your Own License where you can keep running your old enterprise databases in the cloud with just paying for the compute .
Few years back they also bought out Cerner which was the largest EHR company at that time and it pushed their head count by 28000.
They grew their headcount massively during covid like any other software company and simultaneously took on too much debt to build datacenters.
But with rising cost of these capex builds, they are in consolidation mode and reducing headcounts just like other companies.
Oracle the company has not been about Oracle the DB server for 20+ years.
Oracle the company specializes in acquiring software, integrating it in their ecosystem, selling the installations, and living off the recurring licensing fees (NetSuite is one example).
If you're a massive organization and have need for a mission critical database that cannot fail for any reason, with massive scale and scalability, security, reliability, high availability, high throughput, etc., and you want instant expertise available to solve any DB problems, then you're not using Postgres, a cloud database or rolling your own noSQL solution.
I'm talking about huge, billion dollar institutions like banks, financial services, governments, logistics, manufacturing, software, etc. These are the companies run by the "golf executives" who want guaranteed database dependability and are willing to pay for it.
In this case, you'll use Oracle or IBM DB2.
For example, if you're TikTok dealing with billions of interactions, or Boeing, maintaining critical databases of millions of parts, you'll be totally willing to spend huge amounts of money to make sure your data is rock solid, even if it's overpriced (Apparently, Microsoft is one of Oracle's biggest customers of all companies!)
They acquired a lot of applications - ERP, CRM, finance - I suspect actual database licensing revenues are only a small part of their revenues these days.
Years ago I had some fun integrating with Hyperion Financial Management (HFM) - which is actually a pretty impressive beast if you need consolidated financial reporting!
It's exactly as you said. The dependency on old school legacy implementations that can't be turned off. To be fair to Microslop even they had the foresight to open source .net core and even try to bring some things to the open source community. Oracle actively turned into a patent troll.
They make a lot of money off of the cloud services and their layered "enterprise" applications. Selling "just the database" isn't what Oracle's been about for a very long time.
Government contracts. You get good at bidding, there's money to be made there. And those bidding processes are way more than just the tech. That's their main value prop I think. Having the bureaucratic machine to bid and win contracts.
If you want to build a system of monolith services and be locked into a 30 year old waterfall development model, then Oracle is for you.
I’ve had this argument with several DBAs. They always claim “Oracle is the most performant,” while quite possibly true technically, they also tend to run a single massive instance that inevitably leads to a complete failure of the site under heavy load. Oracle is often designed to be the single point of failure. I believe that is by design. The same problems can be solved with modern event driven architectures, better caching, horizontal dynamic scaling, etc.
Totally agreed looking at them from a development and cutting-edge viewpoint. They own what was once very competitive platforms and languages, which they still support. They have largely transitioned into rent seekers.
From the investment standpoint they still have a lot of value to siphon from, but its all rent seeking behavior, its not producing new ecosystems like them or Sun did in the past. Long-term blue chip play.
Though all the Paramount stuff is loosely coupled to them now, so tough to say if its a good long-term play anymore.
Oracle is used for mission-critical legacy applications, which is common in the federal government IT space. Replacing with OSS is a nontrivial undertaking, but it is happening. For the most part, replacing Oracle’s Java with OpenJDK is relatively painless, but some agencies preferred the licensed version because it includes support. Replacing a database, however, is a much scarier task, even when you have experienced and competent DBAs.
The technology is irrelevant, at one point in my career I worked for a ~200 person co. that was aquried by another massive (20,000+ seat) company who was even less useful than Oracle; trying to figure out the rough mechanics of why such a useless tower of people is built and maintained, I realized the magic: big juicy government contracts!
Their biggest asset is ERP. That's how they get orgs locked in, because migrating ERP systems after deployment can take decades of work and cost multitudes more than just eating Oracle's renewal increases. Could orgs jettison them into the sun? Totally. Is it fiscally sensible? Yeah, absolutely. Can you sell that to the board? Nope.
The best way to kill Oracle - because such a toxic organization absolutely deserves to fail - is to avoid building anything atop their infrastructure ever again going forward. Don't use their Java tooling, don't use their software suites, don't use their cloud services.
Just don't use Oracle for anything new, and work to get the fuck off of it for anything that remains.
The only reason Oracle survives is because rich dumb fucks keep giving them money.
> I'm genuinely confused at what the value prop of Oracle is.
Legal blame transfer.
Oracle has every single compliance checkbox you need for any certification you can name.
So, if your end customer (generally BigCorp or BigGovt) wants "NitWit Certification v4007", you call up the Oracle sales rep, get a quote, and pass the cost along with a significant markup.
Support, that's what you'd use them for. Something breaks and your team can't figure it out? You make a phone call and someone will be there in a jiffy to work things out. And if he can't either they'll fly a whole team from a different city or even a different country until they solve it.
I just read a tech "policy" document of one of the largest packaged food makers in Mexico. They explicitly say they ONLY use paid services/software to ensure there is liability and support.
There are A Lot of businesses thar are happy to burn cash for a false sense of security. They don't know better.
I assume you would use Oracle Cloud if, for whatever reason possibly related to legal or competition, you cannot use AWS, or GCP, or Azure. It's hard for me to imagine a startup that needs cloud and would onboard to Oracle Cloud and not to any of the top 3 providers instead.
Also, their inability to make a NewSQL DB rivaling Spanner or Cockroach (they basically just had to clone one of these or acquire Cockroach) puts them out of any serious competition for the future of databases. Their "Oracle Autonomous DB" ain't it.
Oracle has made a large bet on being a cloud, but nobody wants their terrible cloud, which is reflected in their dollar-store prices. They staffed up and built facilities that they can't sell so I am not surprised they are now swinging the axe.
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Not actually of "AI is replacing jobs", more "oh shit we are spending too much and the product isn't good enough for us to ever make a return on our absurd over-investment".
My Amazon layoff notice came at 5am. Same deal. I thought it was fake because it came to my personal email. Then I logged into my work computer and found that all my email had been erased except for a copy of the layoff notice and an invite to a 10am Zoom with HR. The funny part was the invite had everyone who had been laid off in the To: line.
I was able to send internal only emails until 1pm, and then it logged me off and the computer was a brick.
> The layoffs are directly tied to Oracle’s aggressive and debt-heavy expansion into artificial intelligence infrastructure. According to analysis from TD Cowen, the job cuts are expected to free up between $8 billion and $10 billion in cash flow — money the company urgently needs to fund a massive buildout of AI data centers.
Interesting that they admit that the layoff off is due to a pivot from software to hardware.
Very often people will defend these kind of layouts as the result of overhiring but then shouldn't the leadership that over hired 30K people also be held accountable?
853 comments
Given the history of their business model being licensing of important databases that are hard to switch off of, I've actually made a point to avoid using Oracle as much as possible (even so far as to leave MySQL when they acquired it, and I've never started a fresh project in Java, which they used to drive a lawsuit they had with Google).
From my chair, they make an expensive database they try to sell to golf executives. There are innumerable equal (better?), free alternatives, and most startups are founded by broke coders in bedrooms that choose those instead and stick with the devil they know. And they have an un-competitive cloud service? Enlighten me on what I would use Oracle for, I'm genuinely curious.
A very long time ago (circa 2000) there were basically 2 databases that worked for use cases where you needed high availability and vertical scalability and those were Oracle and Sybase and Oracle was really the only game in town if you actually wanted certain features like online backups and certain replication configurations.
At the time, MySQL existed and was popular for things like websites but had really hard scalability caps[1] and no replication so if you wanted HA you were forced to go to oracle pretty much. Postgres also wasn't competitive above certain sizes of tables that seem pretty modest now but felt big back then, and you used to need to shut postgres access down periodically to do backups and vacuum the tables so you couldn't use it for any sort of always-on type of use case.
Oracle also had a lot of features that now we would use other free or cloud-hosted services for like message queues.
[1] in particular if you had multiple concurrent readers they would permanently starve writers so you could get to a situation where everyone could read your data but you could never update. This was due to a priority inversion bug in how they used to lock tables.
To get to the level of scale that oracle can handle we had to build sharding and cluster replication from scratch. It still didn’t get to even 1/10th of a single oracle node. Obviously we made a lot of poor architecture decisions as well - in hindsight, of course.
> Enlighten me on what I would use Oracle
Oracle buys smaller enterprise companies with rich customers that were already using Oracle DB, or makes them rely on it, then cashes in on licensing.
So for example, they bought Micros (most EFTPOS terminals in the world are powered by them, I think), they bought Cerner (big supplier of IT to healthcare companies), they bought PeopleSoft. If your big company isn't using SAP, it's probably using that. Mundane but essential things for large businesses: CRM, ERP, payroll/HR.
So that's what you'd use Oracle for. Or perhaps you wouldn't use Oracle, then Oracle would buy your IT supplier and either you have to change your IT supplier (costing you millions) or congrats you're an Oracle customer now.
The only developers I know who write Java full time work in systems that take pictures of things from far away.
Why would go $58B in debt to support a new feature that no one will want after alienating everyone above?
But Oracle is not just a database company. Oracle started as a database company, but today they are more an applications company than a database company. They have ERP back-office applications (finance, operations, HR), and CRM front-office applications (sales, marketing, service). Oracle bought a large number of applications software companies such as Seibel, PeopleSoft, JD Edwards, NetSuite and Cerner to become this big.
Of course Oracle is also a major cloud services provider and provide AI superclusters, and GPU instances from NVIDIA and AMD (context for today's layoffs).
For instance, I work in the utility industry. They offer specialized utility-specific software for managing data from our meters, our customer and billing system, asset management, HR, accounting, reporting from all these systems. Even more specialized stuff exists that we don'tbuy. No doubt if you had a different use case, Oracle would sell us on their ability to handle it. I think this is the model they follow. They are not trying to sell to startups, tech platforms, software companies, etc. They are trying to sell to your bank.
But Oracle owns Cerner Health (now Oracle Health, but to most users it is still Cerner), i.e. 25% market share of the EHR space, and PeopleSoft, which you are painfully familiar with if you work for a bigcorp or anywhere in the public sector in North America. Their database product is very far from their only LOB.
>Enlighten me on what I would use Oracle for
You would use it to keep your job when your company goes with it against all technical recommendation due to the push of a higher up that wouldn't let the idea go for stupid or suspicious reasons.
Oracle came back with a quote that was so far outside what our company could afford that we went with Informix (not a cheap database). Pretty lucky escape.
A year or two later I ported the whole stack to PostgreSQL and it worked absolutely fine since we didn't have that much scale. Unfortunately when I left the guy who took over was a huge Informix fan so he deleted all the PG code and went back.
My hunch is that big consulting firms like CGI might use it, and therefore the customers of those firms use it? But I haven't worked at any of those.
e.g. I was unsurprised when I spotted that Novartis (no connection, btw) was deep in with Oracle. Big pharma, lots of money, typically-clueless-big-org-IT-leadership, etc.
(LOL, Novartis also uses SAP.)
One of the best things Sun ever did was open sourcing Java.
If you are a publicly traded company who needs to report audited financial results every quarter to shareholders, there are less than 10 ERP software in world for that and Oracle owns 5 of those - Fusion, PeopleSoft, Netsuite, JDE and EBS.
Also, in the last decade a big chunk of their revenue comes from cloud services where these enterprises move away from their physical hardware and onto the cloud. Here also, Oracle provides one of the most generous free limits compared to GCP, AWS and Azure. Also they provide some unique options that I have not seen in any other clouds like Bring Your Own License where you can keep running your old enterprise databases in the cloud with just paying for the compute .
Few years back they also bought out Cerner which was the largest EHR company at that time and it pushed their head count by 28000.
They grew their headcount massively during covid like any other software company and simultaneously took on too much debt to build datacenters.
But with rising cost of these capex builds, they are in consolidation mode and reducing headcounts just like other companies.
Oracle the company specializes in acquiring software, integrating it in their ecosystem, selling the installations, and living off the recurring licensing fees (NetSuite is one example).
I'm talking about huge, billion dollar institutions like banks, financial services, governments, logistics, manufacturing, software, etc. These are the companies run by the "golf executives" who want guaranteed database dependability and are willing to pay for it.
In this case, you'll use Oracle or IBM DB2.
For example, if you're TikTok dealing with billions of interactions, or Boeing, maintaining critical databases of millions of parts, you'll be totally willing to spend huge amounts of money to make sure your data is rock solid, even if it's overpriced (Apparently, Microsoft is one of Oracle's biggest customers of all companies!)
Years ago I had some fun integrating with Hyperion Financial Management (HFM) - which is actually a pretty impressive beast if you need consolidated financial reporting!
I’ve had this argument with several DBAs. They always claim “Oracle is the most performant,” while quite possibly true technically, they also tend to run a single massive instance that inevitably leads to a complete failure of the site under heavy load. Oracle is often designed to be the single point of failure. I believe that is by design. The same problems can be solved with modern event driven architectures, better caching, horizontal dynamic scaling, etc.
From the investment standpoint they still have a lot of value to siphon from, but its all rent seeking behavior, its not producing new ecosystems like them or Sun did in the past. Long-term blue chip play.
Though all the Paramount stuff is loosely coupled to them now, so tough to say if its a good long-term play anymore.
Their biggest asset is ERP. That's how they get orgs locked in, because migrating ERP systems after deployment can take decades of work and cost multitudes more than just eating Oracle's renewal increases. Could orgs jettison them into the sun? Totally. Is it fiscally sensible? Yeah, absolutely. Can you sell that to the board? Nope.
The best way to kill Oracle - because such a toxic organization absolutely deserves to fail - is to avoid building anything atop their infrastructure ever again going forward. Don't use their Java tooling, don't use their software suites, don't use their cloud services.
Just don't use Oracle for anything new, and work to get the fuck off of it for anything that remains.
The only reason Oracle survives is because rich dumb fucks keep giving them money.
> I'm genuinely confused at what the value prop of Oracle is.
Legal blame transfer.
Oracle has every single compliance checkbox you need for any certification you can name.
So, if your end customer (generally BigCorp or BigGovt) wants "NitWit Certification v4007", you call up the Oracle sales rep, get a quote, and pass the cost along with a significant markup.
There are A Lot of businesses thar are happy to burn cash for a false sense of security. They don't know better.
We are sharing some difficult news regarding your position.
After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organizational change. As a result, today is your last working day.
We are grateful for your dedication, hard work, and the impact you have made during your time with us.
After signing your termination paperwork, you will be eligible to receive a severance package subject to the terms and conditions of the severance plan. You will receive an email from DocuSign to your Oracle email address with details on your severance and termination date.
Immediate Action Required
To receive important follow-up information, including FAQs and separation documents to help you through this transition, you must provide a personal email address.
Please click here to submit a personal email address immediately. If you make a submission error, please re-submit a new form. Please Note: The personal email address will only be used for correspondence regarding separation-related information and severance agreements.
Access to your computer, email, voicemail, and files will be deactivated soon, and you will be unable to log into your computer. As a reminder, you are prohibited from downloading, copying or retaining (including emailing yourself) any Oracle confidential information.
Thank you for your contributions to our organization. If you have additional questions, please reach out to the HR team via the Ask HR page or at (888) 404-2494.
Oracle Leadership
Source: https://www.reddit.com/r/employeesOfOracle/comments/1s8jadx/...
Not actually of "AI is replacing jobs", more "oh shit we are spending too much and the product isn't good enough for us to ever make a return on our absurd over-investment".
I was able to send internal only emails until 1pm, and then it logged me off and the computer was a brick.
> The layoffs are directly tied to Oracle’s aggressive and debt-heavy expansion into artificial intelligence infrastructure. According to analysis from TD Cowen, the job cuts are expected to free up between $8 billion and $10 billion in cash flow — money the company urgently needs to fund a massive buildout of AI data centers.
Interesting that they admit that the layoff off is due to a pivot from software to hardware.
They took on 58billion in debt which halved their stock price...
Expected savings is only 8Billion
What you are seeing is Oracle in death pains.....
If you or the org you are working for uses Oracle products fast find a way to migrate away from Oracle as it will cease to exist in 2027 at this rate.