Oracle laid off ~13% of its staff to fund a $300B computing deal with OpenAI. Now, a credit downgrade and $7B in required power grid guarantees put the massive project in jeopardy.
TBH I still don’t get it, no one I know would ever use their shitty overpriced garbage database but somehow apparently it’s so entrenched in several megacorps that they pay megabucks to Oracle instead of simply moving away to a cheaper alternative
The problem is probably hidden in the “simply” part. A huge IT infrastructure built on one tech stack isn’t easy to migrate to another one, it’d cost a lot and all those things that currently “just work” might stop working. And then you’re on a new tech stack and who knows whether it’ll work as well as Oracle has been so far? As long as Oracle keeps the lights on their existing customers will likely stick with them out of inertia.
That won’t necessarily get them new customers, though, and if those new customers instead pick some other tech stack they now face the same challenge trying to get them to come to Oracle. So we’ll see how things work out for them in the long run.
This video might help:
https://www.youtube.com/watch?v=KW80Yjib7RA
TBH I still don’t get it, no one I know would ever use their shitty overpriced garbage database but somehow apparently it’s so entrenched in several megacorps that they pay megabucks to Oracle instead of simply moving away to a cheaper alternative
Confuses the hell out of me
So same business model as Microsoft. Same self-inflicting injury strategy too,
The problem is probably hidden in the “simply” part. A huge IT infrastructure built on one tech stack isn’t easy to migrate to another one, it’d cost a lot and all those things that currently “just work” might stop working. And then you’re on a new tech stack and who knows whether it’ll work as well as Oracle has been so far? As long as Oracle keeps the lights on their existing customers will likely stick with them out of inertia.
That won’t necessarily get them new customers, though, and if those new customers instead pick some other tech stack they now face the same challenge trying to get them to come to Oracle. So we’ll see how things work out for them in the long run.
govs use them hardcore