Oracle is evaluating whether to outsource many of its day-to-day operations to focus on its core business and make itself lean and mean enough to compete in the emerging Internet-based economy.
Over the next twelve months, the company will consider outsourcing its European IT operation, its voice and data networks, purchasing, human resources, logistics and product distribution.
This would potentially mean that it operated as one of the first "virtual companies", with only research and development, direct sales and marketing and its consultancy and training businesses being kept in-house.
Ray Lane, Oracle?s president and chief operating officer, explained the database supplier?s rationale in his keynote speech at its OpenWorld user conference in Vienna this week.
?There?s no fixed balance sheet with the network computing world. The focus is on managing information and a networked company becomes a series of projects. The vertically integrated model of business is dead.
'Geographically-based and hierarchical organisations will be phased out because companies need to focus on their core competencies. The economic model needs to be reinvented. Much can be outsourced. Brand recognition, mindshare and the ability to generate cash is important and market share is more important than assets,? he said.
In an interview with the VNU Newswire, Lane said that the firm had already outsourced its PC helpdesk and support groups, but could do a lot more and would be looking at alternatives in the near future.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago