Oracle’s aggressive sales tactics are turning off customers, setting a roadblock in the company’s race to catch up with Amazon Web Services in the cloud, according to a report on The Information.
Oracle Corp. (Nasdaq: ORCL) is threatening customers of its on-premises software with potentially expensive usage audits and strongly suggesting those customers could solve their problems by moving to the cloud, The Information says. But the tactic is backfiring.
Several big Oracle customers, including oil and gas exploration company Halliburton, toy maker Mattel and electricity provider Edison Southern California, have recently rejected big cloud services deals proposed by Oracle, according to an Oracle employee with knowledge of the situation.
Oracle representatives had suggested the customers strike the deals to avoid expensive audits of how they were using Oracle software, according to the employee. Instead, that approach to selling cloud is irritating customers.
Oracle faces stagnating sales growth, The Information notes. A decade ago, packaged, on-premises software boosted revenue by more than 20% per year. But revenue has flattened over the past three years, as big companies shift to the public cloud, notably Amazon Web Services Inc. and Microsoft Corp.(Nasdaq: MSFT). While Oracle executives once belittled the cloud, now the company is throwing its weight behind its own public cloud service, launched in 2016.