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With sales down 7% for the past three quarters, now could be a good time to buy into Oracle’s cloud strategy.
In the Forrester report The fog begins to lift on Oracle’s cloud shift, analyst Duncan Jones wrote: “The urgent need for orders could mean there are great deals available for well-prepared customers.”
But he warned that the need for Oracle to push new sales to satisfy its investors could increase the risk of sales teams using licence audits and contractual grey areas to generate licence sales where there is insufficient real demand.
Jones urged CIOs to look carefully at what Oracle offers as cloud services, and to steer clear of bundling deals – a strategy the supplier has used in the past with on-premise software to sell more licences.
According to Jones, true software-as-a-service (SaaS) providers avoid bundling services.
In the report, he noted: “Oracle mainly tries to sell its cloud products similarly to how it has always sold perpetual licences: via large, bundled deals with inflexible contracts.
“We see some signs that Oracle’s leaders understand the need for change, such as the move to recruit a specialist cloud salesforce. It has also introduced a programme to help existing customers repurpose shelfware maintenance on products they aren’t using for new cloud services.”
Read more about Oracle’s cloud strategy
- As Oracle ramps up its cloud offering, Shawn Price, senior vice-president for cloud, discusses the company’s plans.
- Oracle launches UK-based platform as a service (PaaS), but can it deliver value for money compared with Azure and AWS?
When Computer Weekly spoke to Shawn Price, senior vice-president for cloud, in February, he said: “Customers have a lot of Oracle technology that they may be paying support for but are not using. In our customer-to-cloud programme, we migrate these applications to the cloud.”
Forrester’s Jones said: “Now is not the time for CIOs to adopt a wait-and-see approach. Act now, as Oracle’s shift to cloud gives you a brief window to reboot your business relationship with it.”