RE: Oracle Raising its prices
Date: Mon, 23 Jun 2008 12:03:29 -0500 (CDT)
I'm (very very) far from an economics expert, but this doesn't make sense to me. Inflation forecasts (US at least) are trending down according to http://forecasts.org/inflation.htm And I've never heard of a publicly held company that responds to the inflation rate in determining employee compensation, unless perhaps it's part of union labor negotiations.
If this rate increase is true, it's more likely to do with it being how much more revenue Oracle Corp figures they can get from customers before the customer reaches their FYO point (as so eloquitely put by one blog). Perhaps they're looking to more quickly reduce debt (and any interest paid on that) from a string of recent large aquisitions. Simple capitalism.
As a customer, our FYO point is decreased by the constant quarterly reminders of "record revenues!" from Oracle, but I'm sure that's already been accounted for in this decision.
My $.015 (adjusted for inflation),
> Well rising inflation on oil has a spiralling effect on other areas as
> oracle has to reimburse its employees higher gas allowances and need to
> recover that from (wish they had recovered this from oil rich customers )
> oracle customers :-)
> With rising inflation oracle has to increase the wages of its employees and
> need to recover that from its customers :-)