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Lose the Java lawsuit, buy tiktok, Oracle this decade how

Use wechat scan QR code < / P > < p > to share with friends and circle of friends < / P > < p > < / P > < p > for most of the past 10 years, < a target = "_ blank" href=" https://news.163.com/news/search?keyword=%E7%94%B2%E9%AA%A8%E6%96%87 "> Larry, executive chairman of the board of directors of Oracle_ blank" href=" https://news.163.com/news/search?keyword=%E5%9F%83%E9%87%8C%E6%A3%AE "> Larry Ellison has been fighting lawsuits in various US courts and persistently lobbying the US government in order to win more profitable businesses and defeat competitors. < / P > < p > these measures are high-risk gambling activities, but they are aimed at revitalizing Oracle and changing the current situation of weak revenue growth. Since 2012, Oracle's revenue has grown by only about 1% a year on average. < / P > < p > but Ellison's efforts have recently suffered a serious setback. In a landmark ruling, the US Supreme Court ruled that Google owned by alphabet used Oracle's < a target = "_ blank" href=" https://news.163.com/news/search?keyword=Java "> java < / a > software development Android mobile operating system is legitimate. The ruling ended a 10-year lawsuit and dismissed Oracle's idea of a $9 billion windfall. Earlier, oracle was bidding for a $10 billion military contract and a deal with social media platform < a target = "_ blank" href=" https://news.163.com/news/search?keyword=TikTok "> tiktok < / a > efforts to reach potentially lucrative cloud agreements have stalled. < / P > < p > these three failures highlight the limitations of Oracle's hope to promote the company's business development by lobbying the US government, and put more pressure on Ellison and chief executive safra Catz to find ways to maintain the operation of the company's existing product lineup. < / P > < p > Anurag Rana, an analyst at Bloomberg, said: "at this time, they just put everything out and see what can last." But in order to improve its own destiny, Oracle must focus on the fundamentals of its software business. "The biggest issue for them is how to restore business growth, and there doesn't seem to be much progress on that," Lana added < / P > < p > although Oracle has a large product line-up covering software, services and data center hardware, its business context is very clear. In the late 1970s, Ellison developed a new method to store and process information, which is Oracle relational database. This kind of database makes Oracle a leader in science and technology industry. Since then, Ellison has been seeking to protect and expand this lucrative business. < / P > < p > < b > database is king < / b > < / P > < p > Ellison pays too much attention to database, which is the company's basic product, resulting in his blind eye to the overall impact of the industry's 20-year shift to cloud computing. Database customers usually save and manage data on their own company's servers, and pay a certain amount of customer support fees to Oracle every year. A former Oracle executive said profit margins in these businesses sometimes even exceed 90%. Cloud computing is to let enterprises rent space on the cloud server in order to store and process information on the Internet. This shift means that Oracle will lose a large part of its existing revenue and profits, at least in the short term. < / P > < p > the two potential deals Oracle is looking for with the Pentagon and tiktok could have generated billions of dollars in revenue and made it a market leader overnight, Amazon and < a target = "_ blank" href=" https://news.163.com/news/search?keyword=%E5%BE%AE%E8%BD%AF "> Microsoft < / a > is a strong competitor in cloud services. < / P > < p > nevertheless, investors seem to be optimistic about the company's development when the company substantially increases its profit expectations and dividends. Oracle's share price rose 22% in 2020 and 17% this year to a record $75.58 by Friday's close. < / P > < p > Ellison, who is now worth about $89 billion, has been calling himself a "cool centrist" for many years. He supported Bill Clinton in the 1990s. One of his biggest concerns is economic growth, which is good for his business after all. < / P > < p > like many government contractors, Oracle often lobbies for intellectual property protection. But as the company has faced increasing business competition in the past decade, it has begun to use various means to weaken its competitors. < / P > < p > in 2008, Charles Phillips, one of Oracle's then presidents and the most senior black executive, supported Democratic Senator Barack Obama's presidential election and opposed Republican Senator John McCain. Phillips held a fundraising event for Obama at a hotel, according to people familiar with the matter. Although some Oracle employees participated in the event, Ellison and Katz were not among them. Katz has long been conservative, two people familiar with the matter said. < / P > < p > Obama's election coincides with the earth shaking changes in the field of science and technology. Companies such as Oracle, IBM and HP, which have become market giants because they sell complex technology systems, are gradually being replaced by Internet companies such as Google, Facebook and Amazon. This can be seen from the communication between the then US president and the company that Oracle's relationship with the Obama administration is not as close as Google's. According to records, from Obama's inauguration to October 2015, Google attended 363 meetings in the White House. < / P > < p > < B style = "font family: & quot; Pingfang SC & quot;; - WebKit text stroke width: initial;" > go ahead < / b > < / P > < p > after Obama was left out for many years as president of the United States, Ellison and Katz became very interested in the 2016 presidential election. Both support Florida Republican Senator Marco Rubio, whom Ellison later called "centrist" in an interview. Ellison donated $4 million to the campaign that supported Rubio. But when Donald Trump won the Republican nomination, Oracle executives quickly lined up to support him. < / P > < p > Katz is in charge of building a closer relationship with trump. A month after the presidential election, Katz went to the trump building with Oracle's top executives, including Oracle's chief technology architect, ed Cleven, deputy Douglas kehring, and Ken Glueck, head of public relations. Katz then joined the presidential Transitional Councilmeeting. < / P > < p > during Trump's term, Katz went to the White House for meetings and attended a private presidential dinner with Peter Thiel, a billionaire and co-founder of Palantir technologies. Thiel was Trump's most famous supporter in Silicon Valley during the 2016 presidential election. At that dinner, Katz criticized the Pentagon's process of selecting partners for a $10 billion cloud computing contract. Oracle is keen to get the contract. < / P > < p > the joint enterprise defense infrastructure (Jedi) contract is a long-term cooperation of the US military in providing public cloud services, with a term of up to 10 years. Oracle's cloud service has not been popular in the market, so that it is called "niche" business by Gartner, an industry analysis company. For Oracle, the deal could have helped the company start catching up with Amazon and Microsoft in cloud computing. But the two cloud giants are also bidding for the contract. < / P > < p > people familiar with the matter said Katz found the opportunity very attractive. She told employees that in order to win the bid, Oracle had to mobilize the whole company. < / P > < p > the problem is that Oracle does not have the technical conditions to conclude the deal. 2019 is excluded. The company later sued and appealed, but to no avail. Last September, Oracle lost its last appeal. < / P > < p > the only thing Oracle can do is to fight a water battle. Oracle launched a campaign to question the fairness of the bidding process and claimed that some Pentagon officials favoured Amazon because they had worked there before. Although Amazon Web Service (AWS) was widely considered to be more advantageous, it lost to Microsoft in the bidding. But this is not the end result. The Pentagon said last month that Amazon accused itself of losing the deal because of Trump's opposition, and that if the lawsuit filed by the company continues, the Pentagon may decide to abandon the contract. < / P > < p > although Oracle's relationship with trump did not ensure that it won the Jedi contract, Amazon became Oracle's nemesis during Trump's presidency. Amazon has broken into Oracle's database field, no longer uses Oracle products, and has become one of Ellison's targets of public criticism. He attacked Amazon's Web service technology, saying it was simple and expensive. < / P > < p > in order to further strengthen his relationship with trump, Ellison supported the then president trump to host a re-election fund-raising event in front of his estate in Mira ranch, California, where there is also a golf course. Trump called Ellison "a great man", oracle "a great company", and Ellison praised Trump's economic plan. < IP > < tok > > there is a huge demand for Oracle streaming media. < / P > < p > in August last year, trump demanded that tiktok must sell its US business. Microsoft made a public offer, but general Atlantic, the tiktok investor, contacted Ellison because he knew he had a close relationship with trump and wanted Ellison to be able to complete the deal, a person familiar with the matter said. < / P > < p > Ellison realized that tiktok's owner, the company, wanted to keep its US business. Unlike Microsoft, he doesn't want to own the video app himself. Byte beat has been considering restructuring tiktok's U.S. operations, and Oracle has made byte beat think trump will support this approach. < / P > < p > after a series of private talks with CEO Zhang Yiming and trump, Ellison persuaded tiktok to suspend the sale of its US business. With Trump's support, the preliminary agreement announced in September that Oracle became a tiktok technology partner. Oracle plans to provide tiktok with cloud services and protect U.S. user data. Oracle also plans to acquire a 12.5% stake in a new U.S. company, but will not participate in the operation of the new company. < / P > < p > Bernstein analyst mark moerdler said at that time that this may be "very valuable to oracle" and "provide considerable profit margin. It is not only the core cloud provider of zoom, but also the cloud service provider of tiktok, which will bring huge market reputation". < / P > < p > but trump lost to Biden in his re-election campaign. In the last days of Trump's term, he lost interest in tiktok and focused instead on how to change the election results. < / P > < p > tiktok has never signed a final agreement, which is still in deadlock. There is no sign that the deal has to be completed. < / P > < p > since then, Oracle's efforts to restore its status have suffered setbacks. The company's tepid financial results in March also highlight that Oracle is still unable to break the cage of revenue growth to a certain extent. < / P > < p > Ellison spent a lot of time on the earnings conference call criticizing SAP se, which is also a technology giant, and listed a series of companies that have switched from SAP to Oracle services. < / P > < p > one name he didn't mention is Google. On April 5, the day the Supreme Court ruled, Google said it would abandon Oracle's financial software and use SAP instead. (Chenchen) < / P > < p >


2023-03-22 10:04:32

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