Why did Oracle Bone Inscriptions lay off employees?

Oracle Bone Inscriptions said it would "streamline its products (referring to Oracle Bone Inscriptions Cloud Infrastructure (OCI)" and let the "second generation cloud" land as soon as possible.

In fact, most of the dismissed engineers are related to Oracle Cloud Infrastructure Classic (OCIC). OCIC belongs to the basic version of Oracle cloud infrastructure. After OCI was launched on 20 16, the company began to eliminate OCIC. The streamlined products mentioned in this announcement should refer to the layoffs of this business branch.

As an improved version of OCIC, OCI is a cloud service platform that includes computing, storage, database and other functions. But even so, since its launch, due to its high cost and other factors, the market response is not ideal. According to data released by Gartner, a market research company, in the field of cloud computing market, Amazon's market share is 5 1.8%. Microsoft 13.3%, Alibaba 4.6%, Google 3.3%. While Oracle Bone Inscriptions failed to enter the top five in market share. Andy Jassy, CEO of Amazon AWS Cloud Service, once described Oracle Bone Inscriptions Cloud Service as an "old database" in public, referring to it as "expensive and difficult to use".

In this regard, Oracle Bone Inscriptions announced the launch of the second generation cloud service (Gen 2 Cloud) at the OpenWorld conference last year, saying that the second generation cloud service pays more attention to "security and automation", which is enough to cope with the increasingly frequent and intelligent network attacks. Interestingly, the R&D personnel of OCI and Gen 2 Cloud are mainly located in Seattle. This may prove that this large-scale layoffs have factional elements.

From the perspective of layoffs, Oracle Bone Inscriptions's future business focus will be OCI and second-generation cloud service. In the recruitment of company homepage positions, most of the recruitment belongs to OCI projects. This proves that the company still wants to improve OCI to win the market.

In addition, some American media said that it is not excluded that layoffs are due to the pressure of fulfilling financial commitments. This is the last quarter of Oracle Bone Inscriptions's fiscal year, which is very important for Oracle Bone Inscriptions. This quarter, the company needs to complete the final sales performance and annual target for the whole year. As Oracle Bone Inscriptions is transforming from software to cloud service, its business income may not be ideal.

In this case, layoffs, a method that can directly cut costs, and the fact that restructuring costs are not included in the statements may become an expedient measure for Oracle Bone Inscriptions to honor its commitments.