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Businesses Cloud Oracle

Oracle's Aggressive Sales Tactics Are Backfiring With Customers (lightreading.com) 232

An anonymous reader shares a report: Oracle's aggressive sales tactics are turning off customers, setting a roadblock in the company's race to catch up with Amazon Web Services in the cloud, according to a report on The Information. [Editor's note: the link may be paywalled; alternative source]. Oracle is threatening customers of its on-premises software with potentially expensive usage audits and strongly suggesting those customers could solve their problems by moving to the cloud, The Information says. But the tactic is backfiring. "Several big Oracle customers, including oil and gas exploration company Halliburton, toy maker Mattel and electricity provider Edison Southern California, have recently rejected big cloud services deals proposed by Oracle, according to an Oracle employee with knowledge of the situation," the publication reported. "Oracle representatives had suggested the customers strike the deals to avoid expensive audits of how they were using Oracle software, according to the employee. Instead, that approach to selling cloud is irritating customers," it added.
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Oracle's Aggressive Sales Tactics Are Backfiring With Customers

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  • by JoeyRox ( 2711699 ) on Sunday May 27, 2018 @03:02PM (#56684714)
    Shakedown tactics like demanding payment for protection are straight out of the Mob's playbook.
    • by Anonymous Coward

      Oracle does this to government agencies all the time. It works quite well. All of them cave to demands to buy more licenses or face audits.

      It's racketeering.

      • by PolygamousRanchKid ( 1290638 ) on Sunday May 27, 2018 @03:24PM (#56684810)

        It's racketeering.

        Then it's time to hit Oracle with a RICO Act . . .

        . . . if Oracle hasn't already paid off the district attorneys . . .

        • Then it's time to hit Oracle with a RICO Act . . .

          It's time to hit Oracle with a tactical nuke.

        • Then it's time to hit Oracle with a RICO Act . . .

          In general whenever you think about doing anything with the RICO act to an organisation, just slap yourself in the face a few times, and then actually go through a normal list of federal crimes or civil contract law. RICO was designed to bring down the kind of organisation that didn't exist on paper. If you could throw a RICO book at Oracle, they'd already not exist, be paying a long backlock of federal fines, and Larry Ellison would be donating his net worth to as many people as possible to stay out of pri

      • by Anonymous Coward

        When they approched out business we switched to postgresql

        • by StormReaver ( 59959 ) on Sunday May 27, 2018 @08:37PM (#56686094)

          When they approched out business we switched to postgresql

          I'll skip the details, but we, though our circumstances were not so dire, switched out all Oracle instances under our control to PostgreSQL because we got sick and tired of every aspect of Oracle's database (the software, the sales and marketing departments, the piss poor customer support, etc.).

          • by Juju ( 1688 )

            We are doing something similar. Although, the approach is more progressive.
            We are switching from Oracle to PostgreSQL for new projects, and will move the existing databases as opportunities arise...
            One can only hope that Oracle DB will follow Solaris in the slow death by free software, Oracle has an history of trying to monetize what can be had for free and failing miserably. I wonder how fast they will manage to kill Java given their current history of alienating customers.

      • Oracle does this to government agencies all the time. It works quite well. All of them cave to demands to buy more licenses or face audits.

        It's racketeering.

        Oh yeah. I worked for the department of parks in australia for a few years and it boggled my mind that on a team of six in development, one guy ended up spending most of his time dealing with bullshit Oracle licensing. We ended up ditching all that code and moving it to Postgres. But it wasnt enough to flush them out. Problem is accounts where dependent

    • They didn't... (Score:5, Insightful)

      by YuppieScum ( 1096 ) on Sunday May 27, 2018 @03:16PM (#56684778) Journal
      What happened was that accountants and MBAs took over the running of their companies, and all they know is that the purpose of any and all companies is to maximise shareholder value.
      • Re:They didn't... (Score:5, Informative)

        by Billly Gates ( 198444 ) on Sunday May 27, 2018 @03:36PM (#56684874) Journal

        Oracle was always expensive as hell. They just were slightly cheaper than IBM's DB2 and didn't require an expensive IBM mainframe contract back in the 1980s. Larry's answer always was I had payroll to meet for my developers back then.

        A company's goal is always to raise the shareprice forever with never an end in sight. The rest of the world is making money by selling to China in the past 20 years. Oracle unfortunately can't do this as Chinese do not pay for software so they need a new creative way to bump up the shareprice.

      • Re:They didn't... (Score:5, Informative)

        by rhadc ( 14182 ) on Sunday May 27, 2018 @03:51PM (#56684938) Journal

        In business school, they taught me to value the customer relationship over its lifetime. They also taught to think of all of the folks involved in the lifecycle of the product, including impacted non-customers, as important stakeholders. Oracle's approach has always been shortsighted, but it's painting with too broad a brush to treat all of the business educated as dollar chasing world breakers. Oracle's faults are Oracle's. Their shortsightedness is the result of *not* listening to sound advice, including that of MBAs.

        • Re: (Score:2, Flamebait)

          In business school, they taught me to value the customer relationship over its lifetime.

          Are you sure they didn't say, "Screw 'em in the ASS!" and you maybe misheard? Because I don't see much valuing of customer relationships going on out there.

        • by rastos1 ( 601318 )

          In business school, they taught me to value the customer relationship over its lifetime.

          /me checks your UID

          Match.

        • Re:They didn't... (Score:4, Informative)

          by thegarbz ( 1787294 ) on Monday May 28, 2018 @03:38AM (#56687312)

          In business school, they taught me to value the customer relationship over its lifetime.

          The value of the customer relationship is not fixed. Either you're not doing the lifetime cost assessment or you went to one of those crappy business schools that preach "the customer is always right". Screwing over a few customers for money at the expense of losing some of them may be a right business choice. ... Especially when you have vendor lockin on your side.

          • They don't even teach those things in the same classes.

            "The customer is always right" is part of marketing and PR classes, it is never part of the business classes.

            You might be mistaking the quality of the student for the quality of the lessons the school teaches; graduates of MBA-mills might really even be good enough at business to keep the subjects straight, and the school might nevertheless have a working strategy to lead them to a passing grade in each class. But even there, a student who understands t

        • value the customer relationship over its lifetime.

          They are, but think Heroin dealer...sure a few will slip the hook, but the rest are just resources to be milked until they die.

        • by epine ( 68316 )

          Their shortsightedness is the result of *not* listening to sound advice, including that of MBAs.

          Clearly, in business school, they wrecked your brain.

          Oracle made a staggering amount of money on their original business proposition by applying maximal extraction leverage at every opportunity.

          Everyone knows that maximal extraction leads to an ultimate goodwill implosion. But the dividends alone from that stockpiled mountain of cash are a fine, eternal goodwill replacement. (Check any competent MBA textbook's i

    • by Billly Gates ( 198444 ) on Sunday May 27, 2018 @03:32PM (#56684860) Journal

      I am not a Gnu zealout by any sense of the means but being addicted to proprietary file formats is evil.

      We all hate Microsoft for doing this but Oracle and IBM have been doing this long before MS rise and in my eyes is less evil than Oracle today. Microsoft at least gives you the bone if you go to Azure and Office 365 by including other features and tools vs buying a copy.

      It is no different than ransomware once you are hooked. If your customer data or a MUST HAVE mission critical app has an Oracle dependency using proprietary PSQL your choices are to pay the ransom to Oracle, get sued, or shut your company down. Take your pick?

      Halliburton probably figured it would be cheaper to fight in court then pay the ransom as they have lots of money and I would guess seat licenses that Oracle is drooling to charge.

      Meanwhile IT costs keep going up even though technology should make them go down. They just lay us off and replace us with Indians and pay Larry Ellison the difference.

      • by DogDude ( 805747 ) on Sunday May 27, 2018 @03:43PM (#56684900)
        We all hate Microsoft for doing this

        Do you have any evidence of this? We've been using Microsoft enterprise-class software (not just Office) for years, and we've never been threatened with an audit.
      • by Anonymous Coward on Sunday May 27, 2018 @04:11PM (#56685060)

        One
        Raging
        Asshole
        Called
        Larry
        Ellison

      • by HiThere ( 15173 )

        Apple has historically been much more a proponent of proprietary file formats than IBM has been. It may well be true that not many files use EBCDIC encoding, but they *could*.

        • Apple did give us HTML 5 and kill flash. THANK GOD. IE 6 was killing all innovation last decade and it refused to ever die. The iphone and demand to view their shitty IE 6 only sites on it propelled HTML 5 as Firefox itself wasn't enough to kill of IE 6 specific CSS and javascript hacks.

    • Re: (Score:2, Insightful)

      Since when was Oracle run by 'software geeks'?

    • when the PHB said that extortion drives in $$$$

  • by Ungrounded Lightning ( 62228 ) on Sunday May 27, 2018 @03:25PM (#56684818) Journal

    "Oracle representatives had suggested the customers strike the deals to avoid expensive audits of how they were using Oracle software, according to the employee. Instead, that approach to selling cloud is irritating customers,"

    But are they irritated enough to bit the bullet, port their mission-critical processes to a non-Oracle database and kiss Oracle goodbye? (If not, they've knuckled under and are going to be locked in to Oracle's products and pricing forever - or at least until a later generation of their own management.)

    If Oracle is already pressuring them to port to a different DB (their cloud product) they've got a golden opportunity. Yes it might be more effort to port to some other DB then Oracle's own "other DB". But much of the work to absorb any differences - the port, the testing, and the dual-DB cya period - will be the same in either case. So it's only an increment, rather than the whole price of a DB port, to go to a different DB.

    • by Billly Gates ( 198444 ) on Sunday May 27, 2018 @03:40PM (#56684888) Journal

      "Oracle representatives had suggested the customers strike the deals to avoid expensive audits of how they were using Oracle software, according to the employee. Instead, that approach to selling cloud is irritating customers,"

      But are they irritated enough to bit the bullet, port their mission-critical processes to a non-Oracle database and kiss Oracle goodbye? (If not, they've knuckled under and are going to be locked in to Oracle's products and pricing forever - or at least until a later generation of their own management.)

      If Oracle is already pressuring them to port to a different DB (their cloud product) they've got a golden opportunity. Yes it might be more effort to port to some other DB then Oracle's own "other DB". But much of the work to absorb any differences - the port, the testing, and the dual-DB cya period - will be the same in either case. So it's only an increment, rather than the whole price of a DB port, to go to a different DB.

      ... and switch to? The only thing equal is MS SQL Server which is also expensive and could do the same shit Oracle did.

      No MySQL and PostGreSQL are not options unless you serve web content and do simple database stuff. People who buy MS SQL Server and Oracle use their AI, financial, and advanced reporting tools. Business Intelligence APIs are HUGE right now and it is also possible it is not them but their other software they purchased is using Oracle as a requirement.

      In the old days when software was made in house you could avoid these problems. But the MBA's love packaged software for savings RIGHT NOW and this is what you get.

      • by Anonymous Coward on Sunday May 27, 2018 @04:22PM (#56685094)

        The thing is, you don't switch from Oracle (say, Exadata boxes) to something comparable as there is nothing directly comparable. What companies do is rethink their approach to BI, reporting and such and move to SaaS solutions, while simplifying greatly. The old days, where Fortune 500 companies would invest double digit millions in 1x and millions in ongoing spend in BI tools are gone.

        I am an enterprise architect, worked for a few very large companies and currently am CIO-1 in a 50bn company. We ditched Oracle and moved serverless all the way, and are reaping double digit million savings. Not to mention we don't have to run this shit.

        Oracle, in the meantime, is on a mission to push existing customers to their weird and overdue cloud thing. It started about 4 years ago, and their tactics started with stripping their own salesforece of commisions on on-prem solutions. Then price hikes. Now, I hear, auditing. (We've since cancelled all our licenses so luckily that's not one of my problems anymore).

        As to why people stick and swear by Oracle - Exadata offers support for insanely bad queries and still manages to make a pretty good job running them. This is a good solutions for companies with incompetent, outsourced dev teams that don't mind paying for the licenses. But the number of such companies is going down and Oracle must see the writing on the wall - they are going the IBM way of being relegated to niche solutions, US gov't contracts and the like. And by looking at IBM numbers, it's not exactly a pleasant place to be.

      • by rkcth ( 262028 )

        How is Postgres not an option? I’ve used it in some super heavy installations and it’s always been amazing. In fact if we are only discussing the database itself, Oracle has less features in many areas.

        • by sad_ ( 7868 )

          Not only that, but if you use the 'enterprise' version of PostgreSQL, you even get an oracle compatibility layer.

      • by GuB-42 ( 2483988 )

        No MySQL and PostGreSQL are not options unless you serve web content and do simple database stuff. People who buy MS SQL Server and Oracle use their AI, financial, and advanced reporting tools.

        Not all of them. Some of them use Oracle because they used Oracle 20 years ago and don't want to change, even though any SQL database would work. I know by experience.

        • Do you know what an Oracle DBA makes vs other database DBAs?

          That's a pretty penny for a glorified backup monkey. (which is all many DBAs are, not all, but many.)

      • Honest question. Why PostgreSQL is not it an option? It is used extensively in my company serving millions of people (government) and works well, I do not remember having had any problems with it.
        • When you install SQL Server or Oracle you have the option to install Business AI and Excel plugins like smart view to connect to your data and autogeneration of reports scripts and Java apis to do ERP and other things. It stopped being just a table 20 years ago.

          This creat a lock-in but also non programmer financial analysts who live and die by the tools to generate cute dashboards and detailed Excel outputs for the MBA bosses. Postgrsql is a cute database. No more no less.

          Really this is an example of Foss s

          • by TheDarkMaster ( 1292526 ) on Monday May 28, 2018 @12:18PM (#56688964)
            But you're actually talking about applications that use Oracle as a base, not Oracle database itself. For example here in my company we create PostgreSQL-based applications on a daily basis, we create complex analysis tools, BI, reports, graphs and etc, everything our customers may need we develop and we do not depend on any tool that requires the use of Oracle.
  • 3rd paty database (Score:4, Interesting)

    by Teun ( 17872 ) on Sunday May 27, 2018 @03:40PM (#56684890)
    Halliburton is regularly audited by the oil companies they work for and I assume they don't like the idea of having their sensitive information stored in a 3rd party database that is hard to audit.
    • Are you saying that a cloud-based Oracle instance is harder to audit than an on-premise Oracle instance?

      Why? As a programmer with a lot of years dealing with databases, both cloud and on-prem, I see no difference.

    • These oil companies are migrating to cloud based services en-mass, happy to fork over huge contracts even for their mission critical / business sensitive things.

      Don't confuse the consumer cloud with what enterprises do. I may not like the idea of linking my windows account to my microsoft account, but those Fortune 500s are all about linking entire active directory systems into the cloud.

  • It may get you a job as president, but selling software and services to people that _know_ your stuff is overpriced and inferior is a bit of a different situation.

  • ... ripe for disruption.

    There are some good FOSS projects that have potential, but they haven't reached critical mass yet. I suspect some player getting inroads within the next decade and giving Oracle and SAP a run for their money.

    Looking forward to that.

  • Once upon a time, an employer of mine attempted to license a few $100,000 worth of their software. It wasn't a high enough amount for Oracle to speak with us, so we ported off of it. They and their partner networks wouldn't even return our calls to accept our money in hand.
  • Comment removed based on user account deletion
  • Every technologist on the planet, every single one of them not on Oracle payroll, hates this company, their products, and most of all their tactics. But not enough of them have the influence or the grit to move to something else. Now is the time. Oracle wants you to move to the cloud, so do it now. Just move to some other cloud. Any other cloud, any other application stack, it really doesn't matter where it is or how much it costs to make it happen. It will be worth it in the end.

  • by erp_consultant ( 2614861 ) on Monday May 28, 2018 @10:39AM (#56688474)

    I recall being on an implementation one time where Microsoft had given the client a sweetheart deal on SQL Server. Basically gave it to them for free. So right in the middle of the project they decide that we are switching from Oracle database to SQL Server database. In the Enterprise Software game this is a big deal.

    Since Oracle also owns the application software, as well as the database, the SQL is written optimally for Oracle. While they support other DBs like SQL Server and DB2, the bug fixes arrive earlier for Oracle. We had to tune every line of SQL, every query, every report. Reports that took 30 seconds to run in Oracle were taking 5 minutes to run in SQL Server. We got it done in the end but it was basically a nightmare.

    I see others on this thread saying just switch to Postgre SQL. If it's not tied to back end applications that are also from Oracle then sure, it might be a viable option. When you are running Enterprise software that is essentially running your entire business (HR, Payroll, Financials, Inventory, Logistics, etc.) then it is going to be a very tough sell trying to convince your CIO or CEO to switch to a different database platform. The risk is simply too great. Most likely you are going to be told to suck it up and make it work.

    Oracle, of course, knows this and that is what allows them to get away with these strong arm tactics. I suspect this is a large part of the reason they got into the Enterprise software business in the first place. It gets their hooks further into the client and makes it all that much more difficult to exit. It is also part of the reason that they are taking the threats from Workday and other cloud vendors so seriously. It is one of the few ways that companies can escape the clutches of Oracle and still run their business without undue risk. Now, cloud software presents risks of its own but that's another discussion for another day :-)

  • For any software company, product licensing should be bulletproof and transparent to the user, as with Adobe. When you install any of the company's products it should be obvious what your legal status is, because an unlicensed product won't install and an expired license should make the product unusable.

    If you're a database vendor (a database vendor!) and your user has to submit 23,000 pages of documentation to prove that it's using your product in a valid way, and then you're still not sure, Oracle's board

  • I can't think of any environment I'm familiar with that isn't actively trying to get away from Oracle. I think they know this too and are just trying to squeeze out the last few drops of money. Basically, anyone doing business with Oracle is doing so because they're stuck with them. This is also true for the other big legacy software houses like CA, MicroFocus, Symantec, etc...where old software packages that hold together the core of large businesses go to live out their retirement years.

    Everyone thinks of

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