Oracle recently merged support (ACS) and managed cloud services (MCS).
Any ideas why?
I heard they are now reporting on-premises support revenue as cloud revenue.
That would explain this odd merger.
8 replies (most recent on top)
They are 100% fudging the numbers for cloud. They are using multiple tactics. I believe the lawsuits speak for themselves, they are not unfounded.
MCS = oracle on demand. Most of the apps have to move to OCI DCs in 12 months. There isn't a job for MCS left in next few years
ACS is part of Oracle support organization.
The revenue from standard, premium, and advanced support goes into a single P&L statement.
Combining cloud services with support means Oracle can report support revenue as cloud revenue.
Just visit Oracle partner websites, you can see this for yourself.
Here's just one example (for those asking for proof):
Convert Oracle support to cloud credits.
It’s no secret Oracle want you to move to their Cloud platform. The big push at the moment is converting some of you support fees into cloud credits.
http://madora.co.uk/5-ways-to-reduce-your-oracle-support-costs/
Need more proof?
How about Oracle's own investors suing Larry, Safra, and Mark for fraudulent reporting of cloud revenue?
https://www.theregister.co.uk/2018/08/13/oracle_sued_cloud_numbers/
Still want more proof? More proof than your own partners and investors?
Busted.
You're funny. The old Show me the proof or shut up trick. I can say the same about yours. Show me the proof they aren't trying to cover up a problem or shut up. OK, if they are so proud of their cloud numbers and are so sure they are successful, then shy bundle them? Synergy or cover up an embarrassment? If they were that great, they'd be parading the figures around like a two tailed rooster. Humand nature tells me something different. The SEC isn't perfect, BTW, they missed Bernie Madoff by a mile.
I'm sure that's a load of sh--. First, ACS is Advanced Customer Support, not Support. It's a distinct thing that did not get much business. It was not exactly Advanced, but it was at least dedicated. Support revenues far exceed ACS revenue and were reported separately from cloud last quarter. Managed Cloud is just one offering that long predates OCI and accounts for only a small portion of cloud revenue. No one is going to be hiding cloud revenue numbers in support revenue numbers because of a change like this and to think that is asinine. Analysts are not stupid. The SEC is not stupid. The people who are stupid are the disgruntled (ex)employees, competitors, and certain industry experts who don't like Oracle who post nonsense like this here. If they have proof of fraud, show it and take Oracle down. They don't so they hide under rocks like this.
It's much more likely that there were synergies between two groups that also addressed needs that existed in both groups. Neither was wildly popular as additional service offerings but both had been around for a long time directly working with customers. I'm sure it made sense to combine their efforts to get the best of managing a hosted system and directly interfacing with the customers who are paying for that service.
Odd? You mean why would you try to hide the explicit cloud revenue (which is almost non-existent since no one buys cloud) and bury it with the billions that on premise is pulling in? I don't think it's odd, it's just brilliant!!! And apparently the analysts are too stupid to see it as a ploy to prop up the very poor revenue from cloud sales.
They were told by heir attorneys who conducted a review that continuing the cloud fraud practices would land them in jail, so they combined revenue streams across the board.
You asked and answered your own question. Could it be that the cloud revenue figures are so embarrassingly bad that they need to be covered up and buried like cat droppings in a litterbox? And could it be that by merging the two they can do so legally despite being a rather unseeming accounting trick?