Shulou(Shulou.com)06/03 Report--

It has been a few days since the news of Oracle layoffs was announced. Should we have some thoughts besides surprise after the news? When SAP increased its investment in China and Odoo formed a joint venture with local companies, why did Oracle lay off nearly 60% of the staff in its R & D center in China?

Oracle, headquartered in the United States, is the second largest software company in the world after Microsoft. It entered the Chinese market as early as 1989, set up the first R & D center in Shenzhen in 2002, and then set up R & D centers in Beijing, Shanghai, Suzhou and Nanjing.

But Oracle, which has monopolized the market for decades, has not performed well in recent years, its market share has been declining, and even the vice president of product development of Oracle, who has worked for 22 years, has left. According to public data, Oracle's profits fell sharply in 2018 and its performance was far from satisfactory. Judging from the six-year turnover since 2013, Oracle's turnover has barely increased for many years in a row. although turnover increased by 5.5% in 2018, profits jumped from US $9335 million to US $3,825 million, a decline of 59%.

The main reason for the decline in Oracle market performance is that the traditional commercial database products are expensive and difficult to operate, and it is difficult to meet the needs of high-traffic scenarios on the Internet. At the same time, because the main customers of Oracle are in the fields of finance, telecommunications, energy, government and so on, they are not aware of the impact of the Internet era on database software. Coupled with the domestic trend of going to IOE, the number of Oracle customers is gradually decreasing.

On January 31st this year, SAP launched the China acceleration Plan in Beijing, which plans to continue to increase investment in the Chinese market in the next five years, promote business development in China, and enhance the commercial value of delivering results to customers. Similarly, domestic enterprise software is gaining momentum, such as the Kingdee user wave, which has a better understanding of the domestic market, especially PS Cloud, which is a joint venture with Odoo, the world's largest open source ERP vendor, which has the flexibility of foreign software while localizing. Oracle still has many competitors in China.

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