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Amazon could also pick on someone their own size. Oracle's annual revenue is more than double AWS at 40B a year. If you look at on-prem enterprise IT, or Azure

Amazon could also pick on someone their own size. Oracle's annual revenue is more than double AWS at 40B a year. If you look at on-prem enterprise IT, or Azure you'll find competitors much closer to AWS with very high performance, resilience, and security guarantees. In fact, Azure is growing much faster than AWS and Microsoft has a huge advantage in many of the industries that AWS is lagging in. AWS is a leader in "running a web app at scale". But when it comes to Healthcare, Finance, Government, Education, Telecommunications, etc, they are small fish in a big pond.

adventured 8y ago
AWS by itself will be the size of Oracle in fiscal 2020. They'll do $24-$25 billion in sales for 2018. Oracle's business hasn't expanded in years: sales in 2015 were $38b, and that's still their approximate annualized sales figure today. AWS is ~64% the size of Oracle. In 2019 they'll be 85% the size of Oracle. So there you have Oracle with essentially zero growth and a failed cloud business that is not only running from behind, it's a disaster. Things are so bad, Oracle has begun trying to hide their cloud numbers when they report. Simultaneously, Oracle's balance sheet is turning into a toxic wasteland. Net tangible assets have gone from positive $6 billion to negative $12 billion in just three quarters. They're now spending the equivalent of ~22% of their net profit on debt interest alone. Ellison will have to try to turn to another very large acquisition soon to bail out the ship that is about to sink. As the large cloud competitors get far larger in the next few years, they're going to begin not just robbing Oracle of growth but taking their existing business away. The scale is at a point where for AWS and Azure to double in size again (guaranteed to happen), Oracle is going to lose big.

3 ms·

Amazon could also pick on someone their own size. Oracle's annual revenue is more than double AWS at 40B a year. If you look at on-prem enterprise IT, or Azure

by oceanplexian 8y ago

adventured 8y ago
AWS by itself will be the size of Oracle in fiscal 2020. They'll do $24-$25 billion in sales for 2018. Oracle's business hasn't expanded in years: sales in 2015 were $38b, and that's still their approximate annualized sales figure today. AWS is ~64% the size of Oracle. In 2019 they'll be 85% the size of Oracle. So there you have Oracle with essentially zero growth and a failed cloud business that is not only running from behind, it's a disaster. Things are so bad, Oracle has begun trying to hide their cloud numbers when they report. Simultaneously, Oracle's balance sheet is turning into a toxic wasteland. Net tangible assets have gone from positive $6 billion to negative $12 billion in just three quarters. They're now spending the equivalent of ~22% of their net profit on debt interest alone. Ellison will have to try to turn to another very large acquisition soon to bail out the ship that is about to sink. As the large cloud competitors get far larger in the next few years, they're going to begin not just robbing Oracle of growth but taking their existing business away. The scale is at a point where for AWS and Azure to double in size again (guaranteed to happen), Oracle is going to lose big.