Link: Oracle swings axe on cloud infrastructure corps amid possible bloodbath at Big Red

These US-based layoffs are part of a broad round of job cuts around the globe this month, said to range from 500 to 14,000 at the database giant. The biz employs about 140,000 worldwide.

All the articles say it’s in the cloud business.

Source: Oracle swings axe on cloud infrastructure corps amid possible bloodbath at Big Red

Link: CA Technologies Begins Site, Workforce Consolidation

‘Part of this shift is driven by a site consolidation strategy “to move more of our people into our centers of excellence,” said Gregoire. “This migration of our teams into fewer, larger locations supports our agile methodology.” According the Gregoire, the company has embraced an “agile” model, where employees need to be present in the office to be effective, meaning a number of these migrations will come from satellite offices.’
Original source: CA Technologies Begins Site, Workforce Consolidation

Shifting IT spending drives sales-force changes – Notebook

Looking at how company’s arrange their sales (and marketing) organizations is an interesting view into the effect of “cloud” on how IT is used and consumed. This week Microsoft is re-arranging it’s sales force to make it more cloud-friendly, people say.

From what I can tell with my dilettante analyst, Microsoft’s theory appears to be that:

  • sales people need to be more technically savvy on cloud,
  • have more vertical knowledge (how does cloud apply to my industry?), and,
  • target larger accounts (where the top and bottom line revenue is worth having a big sales venture, and to bring in volume and cash to public cloud).

Also, with 75% being outside of the US, it’s a dramatic change internationally.

Here’s some excerpts from coverage:

Summarized by Nicole Henderson:

The company said it is implementing the changes not to cut costs, but to improve how it handles sales; specifically, it said it will use employees who are more knowledgeable about specific verticals so they can sell bigger packages, CNBC reports.

As Microsoft vies for more enterprise cloud clients, having better trained salespeople, who are knowledgeable about a specific vertical, will mean they are better equipped to meet client needs. To that end, Microsoft said in an internal memo that it would split commercial sales into two segments – one targeting the biggest customers and one on small and medium clients. In addition, Microsoft employees will be aligned around six industry verticals – manufacturing, financial services, retail, health, education and government.

See also coverage from CNBC, and The Register’s coverage, e.g.:

With recent changes to its enterprise agreement to exclude smaller companies, Microsoft is focusing on bigger deals that require fewer staff, while everyone else gets shifted onto a per-person consumption payment model for Microsoft’s cloudy services.

We also discussed this briefly in this week’s Pivotal Conversations.

Shifting spending

Meanwhile, while this doesn’t capture all of the market-shift (you’d also want to see the shift from COTS to SaaS, infrastructure software, and then *aaS spend), some recent charting from IDC shows one of the motivations for changing up your sales approach, i.e., IT infrastructure (hardware) money is shifting around to public and private cloud stacks:

In the above, you see the blue bar slowly decreasing in the out-years meaning less “traditional” spend and more “cloud” spend. The pricing dynamics and units shipping in public cloud are all whack compared to private cloud (Google, Amazon, and Azure’s hardware needs are much different than private cloud needs), but looking at the red bar gives you an interesting perspective on new build out at enterprises. And, thus, you can get a sense for shifting buyer behaviors in IT…and why you’d want to re-arrange how you sell to them. See more recent details from IDC.

Link

How’s HPE doing? Shrinking on purpose & otherwise

Many quotes of HPE’s CEO, Meg Whitman, explaining the state of HPE, 18 months after all the hijinks. Also, notes on some further cost reductions in the works: “We believe we can take out another $200 million to $300 million in cost in just the second half of this year.”

Stuart Lauchlan’s conclusion:

No-one can doubt the ambition in play here, a corporate reinvention on a massive scale that was never going to be entirely without bumps in the road.

See also his summary of the other half, HP.

Link

Hardware layoffs at Oracle

Oracle claims the company isn’t closing the Santa Clara facility with this reduction in force. Instead, “Oracle is refocusing its Hardware Systems business, and for that reason, has decided to lay off certain of its employees in the Hardware Systems Division.”

Those hardware employees appear to have been Oracle’s failing SPARC hardware department staffers. In mid 2016, Oracle claimed its new SPARC S7 processor would be offered on Oracle Cloud. The cloud is Oracle’s new revenue hope since its new software licensing revenue plummeted by 20 percent in its last quarter ended December 15. At the same time, Oracle’s hardware revenue had fallen 13 percent.

Link