I’ll trade you one cloud today for two clouds tomorrow
Oracle intimidation tactics aren’t new or even much of a ripple in the water as any customer who has purchased middleware knows. What is new is the intimidation tactics allegedly being used by Oracle sales reps to spin their cloud offerings into current ELA’s and PO’s in order to boost revenue light offerings in the portfolio. Basically the premise here is Oracle performs audits of a customers environment to asses where databases and middleware are living, how it is being consumed and if all the licenses are being consumed and/or overprovisioned. This isn’t a new tactic and one that I would largely agree with since it provides visibility for both the customer and Oracle. There has also been debate in the community regarding should Oracle be able to license software that is vmotioned from one to another. Oracle has taken it a step further and basically forced customers to create fenced off clusters that house only their Oracle instances for fear of audit and possible legal hassles.
The overall message here is that Oracle seems to be in a race to build up it’s cloud business but going about it in all the wrong ways. Let’s think about this for a minute. If you are trying to promote a new and different product in a market that is arguably already overcrowded, do you really think the best way to do this is through intimidation and litigation threats? Of course not. As the only saying goes, you attract more flies with honey than you do with vinegar. Furthermore, I’m betting that most of the sales reps are being spiffed and compensated extremely well given the latest Oracle quarterly earnings reports where they missed revenue earnings expectations. At the rate they are losing on-premise licensing customers to SaaS offerings from competitors, you can believe this won’t be the last time you hear of alleged intimidation tactics.