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Oracle Engineering

To help people see data in new ways by providing complete, integrated, and optimized cloud solutions that drive global business transformation

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Align the strategy

Oracle Engineering SWOT Analysis

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To help people see data in new ways by providing complete, integrated, and optimized cloud solutions that drive global business transformation

Strengths

  • INFRASTRUCTURE: Cloud infrastructure growing 66% YoY with Gen2 OCI
  • DATABASE: Market leadership with autonomous database innovations
  • MULTICLOUD: Strategic partnerships with Azure, AWS, and GCP
  • APPLICATIONS: Comprehensive integrated SaaS across business needs
  • SECURITY: Advanced built-in security across all cloud offerings

Weaknesses

  • MARKET: Later entrant to cloud compared to AWS, Azure, GCP
  • TALENT: Engineering talent acquisition challenges in competitive market
  • PERCEPTION: Legacy reputation despite cloud transformation
  • DOCUMENTATION: Developer experience and documentation gaps
  • INTEGRATION: Complex integration across acquired technologies

Opportunities

  • AI: Integration of generative AI across entire cloud portfolio
  • HEALTHCARE: Cerner acquisition expanding healthcare vertical reach
  • MULTINATIONAL: Sovereign cloud operations addressing data regulations
  • MIGRATION: Legacy on-premise customers shifting to cloud
  • DEVOPS: Growing demand for simplified cloud-native development tools

Threats

  • COMPETITION: Intense cloud hyperscaler competition from AWS/Azure/GCP
  • TALENT: Tech talent war limiting engineering growth potential
  • ECONOMY: Economic downturn impacting enterprise IT spending
  • MULTICLOUD: Customer preference for best-of-breed approach
  • REGULATION: Growing data sovereignty and privacy regulations

Key Priorities

  • CLOUD: Accelerate Gen2 OCI infrastructure and autonomous offerings
  • ARCHITECTURE: Strengthen multicloud interoperability capabilities
  • ECOSYSTEM: Expand developer ecosystem and experience improvements
  • AI: Deeply integrate AI capabilities across entire product portfolio
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Align the plan

Oracle Engineering OKR Plan

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To help people see data in new ways by providing complete, integrated, and optimized cloud solutions that drive global business transformation

CLOUD VELOCITY

Accelerate cloud adoption and infrastructure growth

  • PERFORMANCE: Increase OCI compute performance by 35% while reducing costs by 15%
  • CAPACITY: Expand global data center presence to 8 new regions with 99.99% uptime SLA
  • MIGRATION: Launch Migration Accelerator for 3 major legacy systems with 50% reduced time
  • AUTONOMOUS: Increase autonomous database adoption by 40% with new industry optimizations
MULTICLOUD MASTERY

Lead in cross-cloud interoperability solutions

  • INTEGRATION: Launch OCI Cross-Cloud Connect with AWS, Azure and GCP with <10ms latency
  • MANAGEMENT: Deploy unified cloud management console supporting all major clouds for 500+ customers
  • GOVERNANCE: Implement centralized multicloud security and compliance framework spanning 9 regulations
  • AUTOMATION: Create multicloud DevOps pipeline templates reducing deployment time by 60%
DEVELOPER DELIGHT

Create world-class developer experience ecosystem

  • DOCUMENTATION: Completely revamp technical documentation with interactive examples for 85% NPS
  • TOOLS: Launch comprehensive cloud-native dev toolkit with 10,000 new developer adoption
  • COMMUNITY: Grow Oracle Developer Community by 75% with expanded evangelism and support
  • EDUCATION: Create DevOps certification program with 5,000+ certified engineers in first 6 months
AI EVERYWHERE

Embed AI capabilities across entire product portfolio

  • PLATFORM: Launch Oracle AI Platform with pretrained models across 12 industry verticals
  • INFRASTRUCTURE: Deploy specialized AI infrastructure with 25,000 GPU cores across 18 regions
  • APPLICATIONS: Integrate generative AI assistants across all SaaS applications with 40% productivity gain
  • FOUNDATION: Develop Oracle domain-specific foundation models with 35% better accuracy for enterprises
METRICS
  • Cloud Revenue Growth: 33% YoY to reach $24B+ for FY2025
  • Cloud Infrastructure Growth: 70% YoY consumption revenue growth
  • Developer Ecosystem Growth: 100,000 new active developers
VALUES
  • Customer Success
  • Innovation
  • Integrity
  • Technical Excellence
  • Continuous Learning
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Align the learnings

Oracle Engineering Retrospective

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To help people see data in new ways by providing complete, integrated, and optimized cloud solutions that drive global business transformation

What Went Well

  • CLOUD: Cloud revenue grew 28% to $5.3B in Q4 FY2023, exceeding targets
  • INFRASTRUCTURE: OCI consumption revenue increased 66% with high margins
  • APPLICATIONS: Fusion and NetSuite cloud applications grew 20% and 23%
  • HEALTHCARE: Cerner integration showing positive growth and synergies
  • MARGINS: Non-GAAP operating margin expanded to 47% beating guidance

Not So Well

  • ON-PREMISE: License revenues declined 12% as cloud transition continues
  • HARDWARE: Hardware revenue declined 8% as customers move to OCI
  • SERVICES: Professional services revenue growth below expectations at 2%
  • CAPEX: Capital expenditures higher than expected for cloud expansion
  • ADOPTION: Some customer cloud migrations moving slower than anticipated

Learnings

  • MULTICLOUD: Customers demanding more seamless multicloud capabilities
  • AI: AI integration demand accelerating faster than initially projected
  • DEVELOPERS: Developer experience critical to cloud platform adoption
  • REGULATION: Data sovereignty requirements increasingly driving decisions
  • CONSUMPTION: Consumption-based pricing models showing stronger traction

Action Items

  • CAPACITY: Accelerate global data center buildout to meet cloud demand
  • EXPERIENCE: Overhaul developer experience, documentation and APIs
  • MIGRATION: Simplify migration paths for on-premise customers to cloud
  • MULTICLOUD: Expand interoperability with AWS/Azure/GCP partnerships
  • AI: Integrate AI capabilities across entire product portfolio
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Drive AI transformation

Oracle Engineering AI Strategy SWOT Analysis

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To help people see data in new ways by providing complete, integrated, and optimized cloud solutions that drive global business transformation

Strengths

  • DATA: Deep enterprise data expertise across industries for AI/ML
  • AUTONOMOUS: Proven track record with self-managing database
  • INTEGRATION: Unified AI capabilities across applications ecosystem
  • SECURITY: Industry-leading security protocols for AI deployments
  • INFRASTRUCTURE: Specialized OCI AI infrastructure optimizations

Weaknesses

  • RESEARCH: Limited fundamental AI research compared to tech giants
  • TALENT: Challenging AI talent acquisition in competitive market
  • PERCEPTION: Not widely recognized as AI leader despite capabilities
  • ECOSYSTEM: Smaller AI developer ecosystem than competition
  • TOOLS: Limited specialized AI development tooling for customers

Opportunities

  • ENTERPRISE: Embedding AI in enterprise workflows across sectors
  • VERTICAL: Industry-specific AI solutions with vertical expertise
  • LLM: Oracle AI Services deployment across database and applications
  • HEALTHCARE: Cerner acquisition providing health data for AI models
  • GOVERNANCE: AI governance solutions as regulatory pressure increases

Threats

  • HYPERSCALERS: Deep AI investments by cloud competitors
  • OPENAI: Dominance of OpenAI partnership with Microsoft
  • STARTUPS: Agile AI startups disrupting traditional enterprise space
  • TALENT: Limited pool of qualified AI engineers and researchers
  • REGULATION: Emerging AI regulations limiting deployment options

Key Priorities

  • FUSION: Accelerate AI integration across all SaaS applications
  • INFRASTRUCTURE: Expand GPU/TPU capacity for AI workload growth
  • PLATFORM: Develop comprehensive, simplified AI development platform
  • VERTICAL: Create industry-specific AI solutions leveraging data