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Am I the only one who, when they see this, feels that it's already tough for Oracle and that many companies betting on "AI" have finally understood the real ris

Am I the only one who, when they see this, feels that it's already tough for Oracle and that many companies betting on "AI" have finally understood the real risks involved, and that they risk simply failing? I mean, if Oracle is doing that, they're clearly having some problems. I don't know how to properly express that (I'm sorry, I'm not very fluent with English), but for me it seems as some kind of signal of potential start of the downfall. It's like they stepped on the path that leads them to fall, and while they still can change it, if they don't, they're doomed.

alephnerd 7mo ago
> feels that it's already tough for Oracle and that many companies betting on AI have finally understood the real risks involved This has nothing to do with AI, whose capex largely falls under Oracle Cloud. The main teams hit - RHS, SVOS, and NetSuite India - are associated with Cerner and NetSuite, both of which are the kinds of legacy SaaS apps that are most likely to see reduced spend in the world today - it's cheaper to hire Accenture/PWC/Deloitte or WITCH combined with Anthropic or OpenAI to build and manage your own custom in-house or use that threat to purchase an actual market leader in those categories like Veeva or SAP respectively.
- dryarzeg 7mo ago
  > The main teams hit - RHS, SVOS, and NetSuite India - are associated with Cerner and NetSuite, both of which can serve to reduce some fat. > reduce some fat Yes, but, well... why do they need to do that at all? I mean, what made them make this decision right now? I think it was mentioned in the article - they're in debt because of their AI data centers projects: > Oracle has taken on $58 billion in new debt within just two months. Although... > All of this is happening even as the company posted a 95% jump in net income — reaching $6.13 billion — last quarter. Still, > According to analysis from TD Cowen, the job cuts are expected to free up between $8 billion and $10 billion in cash flow — money the company urgently needs to fund a massive buildout of AI data centers. And they need a lot of resources to fund that, because: > Oracle to Invest U.S. $2 Billion in AI and Cloud Infrastructure in Germany (2025) [1] > Oracle unveils $10B data center expansion plan (plans for 2025) [2] While they're having some problems now: > Oracle and OpenAI End Plans to Expand Flagship Data Center (Bloomberg) [3] It's just a few examples; I'm sure if you will dig deeper you will find more. Some sources suggest that "Oracle plans to invest up to $50 billion in 2026 to expand its AI data center infrastructure", but I'm not sure if it's true and if you can trust them, so I'll leave it there. They're trying to optimize because they're in debt, and still they seem to expand that debt even more. [1] https://www.oracle.com/news/announcement/oracle-invests-two-billion-dollars-in-ai-and-cloud-infrastructure-2025-07-15/ https://www.oracle.com/news/announcement/oracle-invests-two-... [2] https://www.channeldive.com/news/oracle-capex-spike-cloud-ai-data-center/807716/ https://www.channeldive.com/news/oracle-capex-spike-cloud-ai... [3] https://www.bloomberg.com/news/articles/2026-03-06/oracle-and-openai-end-plans-to-expand-flagship-data-center https://www.bloomberg.com/news/articles/2026-03-06/oracle-an...
  - alephnerd 7mo ago
    > Yes, but, well... why do they need to do that at all Because the ERP and EHR market is almost entirely dominated by SAP and Epic. Frankly, the Cerner bet was already a bad bet when they took it in the early 2020s as was NetSuite to a certain extent. No business has an obligation to hire you in perpetuity. Similarly, you have no obligation to remain at a company you don't like. > Although... >> All of this is happening even as the company posted a 95% jump in net income — reaching $6.13 billion — last quarter. Which is largely attributed to the growth in spend on Oracle Cloud. --- I work in this industry and once you remove the AI washing, much of Oracle's current strategy is around building a hyperscaler business that is comparable to GCP and Azure in size. Already over the past 2 years I've seen 2 fortune 500s completely shift off AWS or Azure to Oracle Cloud because of better terms and strategic hires by Oracle Cloud. Edit: can't reply > Thanks for explanation No worries! Infra, Enterprise, Cloud, and Cybersecurity has a very different dynamic from other businesses > And still they were trying to compete, weren't they Sure, 5 years ago. But not anymore. > Why have their cloud services are suddenly started to make more money, roughly speaking Becuase around 2-3 years ago Oracle Cloud began strategically hiring enterprise sales leadership from Azure, AWS, and GCP with preexisting relationships with F1000 accounts who were getting hit by contract renegotiations from the other 3. > what exactly pushed them to do it right now The "SaaSpocalypse" [0]. Basically, non-market leading Enterprise SaaS products cannot justify their current prices and valuation because the choice is to now either buy best-in-breed at a significant discount or build in-house working with a systems integrator for Anthropic, OpenAI, or Gemini. If you weren't already a market leader in your specific segment of Enterprise SaaS you are most likely going to see your dealbook reduce significantly over the next 2-4 years as customers shift to dominant market players who are offering significant discounts to stave off a "build with Accenture/WITCH+OpenAI/Anthropic" disruption. [0] - https://techcrunch.com/2026/03/01/saas-in-saas-out-heres-whats-driving-the-saaspocalypse/ https://techcrunch.com/2026/03/01/saas-in-saas-out-heres-wha...
    - dryarzeg 7mo ago
      > Because the ERP and EHR market is almost entirely dominated by SAP and Epic. And still they were trying to compete, weren't they? > Which is largely attributed to the growth in spend on Oracle Cloud. That's exactly what I'm trying to say. Why have their cloud services are suddenly started to make more money, roughly speaking? And at the same time, what is (seemingly) the main reason for their recent debt increase? They do cut out the fat, yes, I agree, but what exactly pushed them to do it right now? What made them to act so quickly and urgently? That's what I'm trying to say.

alephnerd 7mo ago

> feels that it's already tough for Oracle and that many companies betting on AI have finally understood the real risks involved This has nothing to do with AI, whose capex largely falls under Oracle Cloud. The main teams hit - RHS, SVOS, and NetSuite India - are associated with Cerner and NetSuite, both of which are the kinds of legacy SaaS apps that are most likely to see reduced spend in the world today - it's cheaper to hire Accenture/PWC/Deloitte or WITCH combined with Anthropic or OpenAI to build and manage your own custom in-house or use that threat to purchase an actual market leader in those categories like Veeva or SAP respectively.

dryarzeg 7mo ago
> The main teams hit - RHS, SVOS, and NetSuite India - are associated with Cerner and NetSuite, both of which can serve to reduce some fat. > reduce some fat Yes, but, well... why do they need to do that at all? I mean, what made them make this decision right now? I think it was mentioned in the article - they're in debt because of their AI data centers projects: > Oracle has taken on $58 billion in new debt within just two months. Although... > All of this is happening even as the company posted a 95% jump in net income — reaching $6.13 billion — last quarter. Still, > According to analysis from TD Cowen, the job cuts are expected to free up between $8 billion and $10 billion in cash flow — money the company urgently needs to fund a massive buildout of AI data centers. And they need a lot of resources to fund that, because: > Oracle to Invest U.S. $2 Billion in AI and Cloud Infrastructure in Germany (2025) [1] > Oracle unveils $10B data center expansion plan (plans for 2025) [2] While they're having some problems now: > Oracle and OpenAI End Plans to Expand Flagship Data Center (Bloomberg) [3] It's just a few examples; I'm sure if you will dig deeper you will find more. Some sources suggest that "Oracle plans to invest up to $50 billion in 2026 to expand its AI data center infrastructure", but I'm not sure if it's true and if you can trust them, so I'll leave it there. They're trying to optimize because they're in debt, and still they seem to expand that debt even more. [1] https://www.oracle.com/news/announcement/oracle-invests-two-billion-dollars-in-ai-and-cloud-infrastructure-2025-07-15/ https://www.oracle.com/news/announcement/oracle-invests-two-... [2] https://www.channeldive.com/news/oracle-capex-spike-cloud-ai-data-center/807716/ https://www.channeldive.com/news/oracle-capex-spike-cloud-ai... [3] https://www.bloomberg.com/news/articles/2026-03-06/oracle-and-openai-end-plans-to-expand-flagship-data-center https://www.bloomberg.com/news/articles/2026-03-06/oracle-an...
- alephnerd 7mo ago
  > Yes, but, well... why do they need to do that at all Because the ERP and EHR market is almost entirely dominated by SAP and Epic. Frankly, the Cerner bet was already a bad bet when they took it in the early 2020s as was NetSuite to a certain extent. No business has an obligation to hire you in perpetuity. Similarly, you have no obligation to remain at a company you don't like. > Although... >> All of this is happening even as the company posted a 95% jump in net income — reaching $6.13 billion — last quarter. Which is largely attributed to the growth in spend on Oracle Cloud. --- I work in this industry and once you remove the AI washing, much of Oracle's current strategy is around building a hyperscaler business that is comparable to GCP and Azure in size. Already over the past 2 years I've seen 2 fortune 500s completely shift off AWS or Azure to Oracle Cloud because of better terms and strategic hires by Oracle Cloud. Edit: can't reply > Thanks for explanation No worries! Infra, Enterprise, Cloud, and Cybersecurity has a very different dynamic from other businesses > And still they were trying to compete, weren't they Sure, 5 years ago. But not anymore. > Why have their cloud services are suddenly started to make more money, roughly speaking Becuase around 2-3 years ago Oracle Cloud began strategically hiring enterprise sales leadership from Azure, AWS, and GCP with preexisting relationships with F1000 accounts who were getting hit by contract renegotiations from the other 3. > what exactly pushed them to do it right now The "SaaSpocalypse" [0]. Basically, non-market leading Enterprise SaaS products cannot justify their current prices and valuation because the choice is to now either buy best-in-breed at a significant discount or build in-house working with a systems integrator for Anthropic, OpenAI, or Gemini. If you weren't already a market leader in your specific segment of Enterprise SaaS you are most likely going to see your dealbook reduce significantly over the next 2-4 years as customers shift to dominant market players who are offering significant discounts to stave off a "build with Accenture/WITCH+OpenAI/Anthropic" disruption. [0] - https://techcrunch.com/2026/03/01/saas-in-saas-out-heres-whats-driving-the-saaspocalypse/ https://techcrunch.com/2026/03/01/saas-in-saas-out-heres-wha...
  - dryarzeg 7mo ago
    > Because the ERP and EHR market is almost entirely dominated by SAP and Epic. And still they were trying to compete, weren't they? > Which is largely attributed to the growth in spend on Oracle Cloud. That's exactly what I'm trying to say. Why have their cloud services are suddenly started to make more money, roughly speaking? And at the same time, what is (seemingly) the main reason for their recent debt increase? They do cut out the fat, yes, I agree, but what exactly pushed them to do it right now? What made them to act so quickly and urgently? That's what I'm trying to say.