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Why Oracle is laying off staff: where does Oracle go in China under the background of Cloud Computing

2025-04-04 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > Servers >

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Oracle layoffs are common. I remember that after Oracle's acquisition of Sun a few years ago, it had to lay off Sun in order to make it profitable. Oracle cut its Sun staff by up to 50%, or about 13800. There was also a lot of uproar at that time, so how is it different from the recent layoffs in China?

Although Ellison realized earlier that Oracle should enter the application business, in fact, he has not been interested in the application business. He thinks that applications are too mediocre compared to databases and development tools. It's just a boring thing, such as managing accounts, salaries and so on. Ellison later said frankly: "I have never paid attention to the field of application software." I can say that I am just a bystander and indifferent to it. " Perhaps because of the late entry, the market seems to have abandoned Oracle when it comes to the need for cloud transformation.

On the other hand, according to public data, Oracle's profits fell sharply in 2018 and its performance was not satisfactory. Oracle's turnover has barely grown in the six years since 2013. Although the company's turnover rose 5.5% in 2018, profits jumped from $8335 million to $3,825 million, down 59%. Oracle's market share in China is also declining.

At the same time, we see that domestic manufacturers, Kingdee, user friends and tide have made good achievements in the cloud product market, which has brought great pressure to SAP, Oracle and other foreign manufacturers. For example, in 2018, a joint venture with Odoo, an international well-known open source ERP manufacturer, launched PS Cloud, the first open source cloud ERP product based on micro-service architecture, to provide one-stop solutions for small and medium-sized enterprises. In terms of market share of enterprise application software in 2018, the tide surpassed Oracle, jumping from the fourth to the third.

Market scale and growth Forecast of Enterprise Application Software in China from 2019 to 2021

According to the CCID report, China's enterprise application software market will grow steadily at an average annual compound growth rate of 13.8% in the next three years. By 2021, China's enterprise application software market will reach 61.16 billion yuan. How much more can Oracle account for?

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