Re: SMH on Salesforce-Oracle

On 6/26/2013 11:29 PM, Bruce Momjian wrote:
> On Wed, Jun 26, 2013 at 08:02:02PM -0700, Adrian Klaver wrote:
>>> Of course, there might be some other conclusion, logical or illogical,
>>> but I can't think of one.
>>>
>> As someone else suggested, it is a chess game. Salesforce is
>> currently an Oracle shop. All the cat fighting aside, they need to
>> maintain a relationship with Oracle for the foreseeable future.
>> Oracle released earnings on June 20th and their stock immediately
>> tanked 8%+. They need to show forward momentum. The market
>> specifically called out their lack of success in making more money
>> with the hardware assets they got from Sun and their trailing the
>> trend to cloud computing. Not surprisingly the deals they have been
>> touting recently address both those issues. Notably lacking in the
>> press releases/stories are any hard numbers on actual dollar amounts
>> involved, so I would definitely take a wait and see attitude.
> Yes, no question Oracle is hurting --- they missed financial targets in
> 4 of their past 9 quarters:
>
> http://online.wsj.com/article/SB10001424127887323998604578565912150575302.html
>
> and someday the press is going to clue in that Postgres is part of that.
> The issue with Salesforce is the length of the deal --- 9 years. It is
> hard to call that just "maintain a relationship with Oracle".
>
> Now, if that 9 years is somehow _optional_ on Salesforce's part, then
> there might be something to the "maintain a relationship", but I have
> not seen anything suggesting that.
I would be really surprised if Salesforce went for that deal. Got to
believe that they have the option to do other stuff. The more I think
about it, the weaker Oracle looks in this exchange.

I guess time will tell...

--
Ned Lilly
President and CEO

ned(at)xTuple(dot)com <mailto:ned(at)xTuple(dot)com> // +1-757-461-3022
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