Tag Archives: strategy

Oracle Cloud Strategy Fail

Oracle rose to database dominance by making their software freely available. Anybody can download a $100K+ enterprise edition database and use it for personal learning as long as he likes.

The Oracle Cloud offerings, on the other hand, are strictly limited. You need to provide both a mobile phone number and a credit card number in order to get a miserly 30-day trial. Once you’ve spent your 30 days, you’ve used the one chance you get in this lifetime to learn Oracle’s 50+ cloud offerings.

Reality Distortion Field - Steve Jobs had it...

Contrast this with the approach taken by Amazon: A free tier without time limitation, and a generous 12-month trial for many of the other services. They took a page from Oracle’s playbook, offered free access and became dominant in the cloud space.

Oracle defends their stinginess by saying that it’s too expensive for them to offer free trials. And apparently, they believe they don’t need to offer good trials because their cloud is faster and cheaper.

Unfortunately, the ability of Larry Ellison to distort reality is limited. Oracle has a negligible market share in IaaS and PaaS and since they won’t invest a smidgen of their $60 billion cash hoard in better trials, they are unfortunately likely to remain a bit player in this space.

I’ve used my own phone number and credit card, and my wife’s phone number and credit card, so I’m now out of options for learning more about the Oracle cloud. But I’m learning AWS.


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Why Does Oracle Exist?

At an Oracle Partner event this week in Croatia, I got the latest updates on Oracle’s products. And it hit me that nobody, not even Oracle, understands why the company exists.

I looked at their website but was unable to find a mission statement or discern any coherent vision. It seems Oracle exists simply because it does.

Back in their database days, they wanted to manage all the world’s information. But in their current incarnation, their vision more cloudy than cloud.

Why on earth does an enterprise software company like Oracle dabble in chatbots? Why are they building an IFTTT clone? Why are they running “Oracle Code” events and talking about everything but Oracle software? Why are they coming from a sub-one-percent IaaS market share and announcing their intention to rule the IaaS world?

What Oracle should do is:

  • Build on their strength in SaaS. I believe they are on track to living up to Mark Hurd’s vision of being one of the two SaaS vendors  with 80% of the market (and no, SAP won’t be the other one)
  • Provide PaaS trials limited in power, but not in time. Nobody can figure out how to use Oracle PaaS offerings in meager 30-day trials
  • Concentrate on real differentiators like Application Builder Cloud Service (and stop trying to provide their version of every cloud service in the universe).

Oracle is a great software engineering company. I hope they figure out why they exist.