they're getting out of commodity hardware, and into commodity cloud?
seems kind of stupid.. would of thought they would of gotten out of anything commodity. No margins after all.
Database and wannabe hardware giant Oracle has beat Wall Street expectations after nine disappointing months, and said cloud services are one of its three main growth areas for next year. The company reported its second-quarter results for its fiscal 2014 year on Wednesday, and surprised analysts by stemming the rot in new …
They don't seem to believe that given their engineered solutions.
If they did then they would not be rapidly exiting the commodity server business.
They want high margin, they don't care about selling a million boxes if it's at a tiny margin rate (IBM is similar I think hence rumors of them wanting to sell some/most of their X-series x86 systems to someone).
I suppose the only explanation is the "commodity" cloud has much higher margins than the term "commodity" indicates. Given your typical cloud pricing from Amazon or whomever it doesn't surprise me so much. But the use of the word commodity was somewhat surprising.
Disappointing article in pure journalistic terms, this reads more like a political pamplet than a news article. Not what I'd expect from El Reg. Very poor mix of news reporting, poor analysis and biased opinion.
Knock and criticise Oracle all you want but when you don't comment on significant events such as Cisco's profit warning and resultant 13% drop in share price last month you're missing the point.
The financial markets look to Oracle as a bellwether of the health of the IT industry, and were substantially relieved at Oracle's results - hence the 1.4% shareprice rise in after hours trading. That was the news.
Also, compared to IBM (down 16 percent, adjusting for currency) and Cisco (8-10 percent drop in revenue in the current quarter), Oracle's hardware 2% growth in constant currency looks decidedly rosy.
> Cisco ... you're missing the point.
What is the point?
> The financial markets look to Oracle as a bellwether of the health of the IT industry
The "financial markets" are made up of clowns that need to clown lest the music stops.
For me all this just means that in an bubble atmosphere of the worst sort anything can happen and random interpretations can be pulled out of random arses.
We also may have Oracle cannibalizing its own customer base for a last hurrah but this is yet another problem.
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