Oracle(US:ORCL) Sou Hu Cai Jing·2025-08-09 01:45Core Perspective - Oracle's decline in the Chinese market illustrates the risks of complacency and neglecting local talent development after a long period of market dominance [2][28]. Group 1: Market Entry and Dominance - Oracle entered the Chinese market in the late 1980s, capitalizing on the demand for advanced information technology during China's reform and opening-up period [4]. - The company quickly established a monopoly in the database market, with enterprises paying substantial software and service fees, sometimes reaching hundreds of millions annually [5][8]. Group 2: Business Practices and Employee Treatment - Over time, Oracle's business practices became increasingly aggressive, with exorbitant pricing and mandatory maintenance fees, leading to strained relationships with clients like China Unicom [7][10]. - The company's founder publicly stated a refusal to train Chinese employees, creating a culture where local staff were relegated to menial tasks, while key technical roles remained occupied by foreign employees [12][14]. Group 3: Rise of Domestic Competitors - Discontent among Chinese enterprises led to a surge in domestic database development, with Alibaba, Huawei, and Tencent launching competitive products that outperformed Oracle's offerings at lower prices [16][19][21]. - The Chinese government's push for information technology localization and data security further accelerated the adoption of domestic databases, as critical sectors sought to reduce reliance on foreign technology [23][24]. Group 4: Oracle's Decline - Oracle failed to adapt to market changes, clinging to outdated technology while competitors embraced cloud computing and big data [26]. - A significant layoff in 2019, where over 900 employees were let go, signaled Oracle's retreat from the Chinese market, further confirmed by the removal of its database from key systems by major clients like Taobao [26][28].