What’s crazy is how Oracle’s free cash flows have gone from “money-printing machine” to deep in the red due to their data center investments. My guess is that some of those cuts are to try to balance that?
What’s crazy is how Oracle’s free cash flows have gone from “money-printing machine” to deep in the red due to their data center investments. My guess is that some of those cuts are to try to balance that?
Oracle is still mostly generating income from an old school model, a bit like IBM and SAP used to. They have huge contracts with mega-corps bringing in millions per year for a license. The have been pivoting to other things like consulting, cloud, AI for years but I still feel most of the income comes from these original db and product licenses. As someone who worked with Oracle since 1998 I'm kind of amazed they've kept at it for so long major Healthcare, Utilities, Banks still locked in and in some cases buying new contracts.
Well you have to somehow both indicate that you are not behind in the AI race but also that you are not hemorrhaging money. That means crapping all over your org in order to fund the data center spending.
All in the all-mighty fiduciary duty to your investors of course.