Feeds

Oracle facing 'worst' quarter in 15 years?

Flaw in buying-IT-customers strategy uncovered

Boost IT visibility and business value

One of the driving forces behind Oracle's three-year corporate buying frenzy has been to add customers to its roster by owning the 44 tech companies supplying them.

Problem is, you you can have all the customers under the sun but if they ain't spending on IT they ain't buying your products.

Now, it seems Oracle's $13bn plus M&A binge has hit its logical flaw, as Oracle is this month expected to report the worst quarter since the early 1990s - another recessionary period for those who can see past the dot-com crash of the early 2000s.

JMP Securities analyst Patrick Walravens reportedly said: "Our due diligence suggests that the February quarter was, in some respects, the worst Oracle has experienced in over 15 years. The tone of the commentary from our industry sources regarding new license revenue is the worst we have ever heard."

These words comes after Oracle reported a second-quarter in December that was broadly in line with Wall St's expectations, despite a tanking economy.

If Walravens is correct, Oracle won't be the first tech company to bet pulled under by the economy.

In the case of Oracle, though, the recession has given customers reason to pause when it comes to buying or renewing Oracle. These people, it seems are opening the door to fully paid-for open source, instead of just dabbling with the free version at the edges of their infrastructure or getting by without paying the support fees.

Pressed by economics, customers are looking for alternatives to simply bolting another expensive Oracle database on to the network just to hold application data or simply spinning up another Oracle-owned application server.

For these people, open source is providing not just a lightweight alternative to an all-you-can eat Oracle middleware architecture, it's also proving cheaper in areas considered mission critical. ®

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
Intel's Raspberry Pi rival Galileo can now run Windows
Behold the Internet of Things. Wintel Things
Linux Foundation says many Linux admins and engineers are certifiable
Floats exam program to help IT employers lock up talent
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
Eat up Martha! Microsoft slings handwriting recog into OneNote on Android
Freehand input on non-Windows kit for the first time
Linux kernel devs made to finger their dongles before contributing code
Two-factor auth enabled for Kernel.org repositories
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.