Friday, June 19, 2015

Oracle must find another way to make money – IDG.se

Lars Danielsson
Lars Danielsson


Why can not be Oracle customers gain pay for the actual use of the Oracle software? For that Oracle would be able to charge more to customers. It’s that simple.

The reason that Oracle can act like this is that the company’s products, particularly the database, brings strong lock-in effects. For many customers, it is difficult, almost impossible, to change Database. You accept unreasonable conditions to the option, to change the database, is even worse.

It is clear that Oracle can not act in this way on the new markets to work to break into, for example, various types of cloud services. Because it is all about new applications, the customers the ability to choose suppliers in a completely different way than it is about databases for many years been the base plates in key IT solutions.

Oracle works so ready to adapt to the new situation and has probably already done it to some extent. How the adjustment will go depends certainly on how deeply rooted culture to squeeze out the last drop of blood out of the customers of the company.

If there is in the walls trying to do business by putting its clients in unfavorable situations, basically based on their own products’ function, then it will go badly for Oracle in the long term.

The road from the This situation is to really focus on value for customers. It makes you so clear already at Oracle, but it must become increasingly overriding guiding principle for all the different roles in the company.

A concrete beginning would be to simplify licensing rules for Oracle software. But that’s asking too much at present. Rome was not built in a day and not the Oracle boss Larry Ellison luxury yachts, either.

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