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Tuesday 14 September 2021

IaaS and SaaS are hits for Oracle during a mixed Q122

Oracle logoOracle’s Q122 (to 31 August 2021) was mixed with revenue slightly below market expectations causing the share price to drop c.3% however the cloud numbers were revealing and reassuring: IaaS and SaaS now represent 25% of revenue. With capital investment in cloud and growth ramping up, it’s safe to say that Oracle has found its cloud mojo.

Overall revenue grew 4% to $9.7bn although the growth rate was down on the 8% of the preceding quarter. The company is forecasting revenue growth of 3%-5% in Q2. Cloud Services and Licence Support saw 6% growth to $7.4bn while Cloud Licences and On-Premise Licences declined 8% to $813m. Net income rose a healthy 9% to $2.5bn with Oracle pointing to IaaS and SaaS as its fastest growing and highest margin new businesses and highlighting that as they continue to grow “they will help expand our overall profit margins and push earnings per share higher".

Within the cloud portfolio Fusion ERP cloud secured 32% growth with NetSuite delivering 28%. There was demand from the banking and healthcare sectors and Oracle says these will be its largest verticals going forward. On the Oracle Cloud@customer front revenue was up 44% as customers continued to respond well to the hybrid offering. 

Oracle is making good cloud progress but there is still more to be done and with fierce competition from the likes of Microsoft Azure, Amazon Web Services, Google Cloud, Salesforce, Workday, FinancialForce and not forgetting SAP, it cannot and is not taking anything for granted, as indicated by its ramped up data centre infrastructure investments

Posted by: Angela Eager at 08:38

Tags: results   cloud   software  

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