Recurring Revenue Authors: Yeshim Deniz, Liz McMillan, Elizabeth White, Zakia Bouachraoui, Pat Romanski

Related Topics: Recurring Revenue, Java IoT, Log Management, @CloudExpo

Recurring Revenue: Article

Oracle Sales Surge 47%

Larry spits in HP’s eye again

Oracle's fiscal Q2 revenues were up 47% to $8.6 billion, ahead of expectations of $8.3 billion. Its performance was nothing like poor Cisco, suggesting that maybe the portents aren't as bad as the doom merchants say.

The all-important new software license revenues were up 21% to $2 billion.

Oracle co-president Safra Catz, who predicted only 6%-16% growth last quarter, credited "company-specific momentum" for the 21% uptick in new licenses.

Software license updates and product support revenues were up 12% to $3.6 billion.

Sun hardware and support revenues were worth $1.75 billion, roughly 20% of Oracle's total, with a gross margin on hardware of 53%.

Oracle co-president Mark Hurd said the pre-packaged hardware/software Exadata appliance pipeline is now worth nearly $2 billion.

He claimed the number "is a good leading indicator that customers are planning to increase their investment in Oracle technology." Guess he was thinking of the people who thought buying Sun was a dumb idea and that albatross couldn't be turned around.

Oracle is expecting "more meaningful" hardware growth next year. The Exadata box, soon to be followed by the Intel- and Solaris-based Exalogic machine, has been sold in 50 countries, Hurd said, with 30%-35% of its initially hesitant customers moving to their second box and others coming off pilots and starting to write checks.

During the Thursday conference call CEO Larry Ellison targeted HP, rather than IBM, as an easier mark. That's his second swing with that bat.

HP's machines, he said, are "slow, expensive and add little or no software value." Although both IBM and HP are ahead of Oracle in the high-end OLTP and data warehousing space, he predicted that Oracle would soon be number two. HP, he said, will "lose share next year."

Reportedly - and this comes from an HP source - 70% of Exadata sales are replacing HP machines, which kinda explains Oracle change in tact from anti-IBM to anti-HP, now doesn't it?

Larry thinks he's got so-called Big Data covered with what he's got in-house, which is fault-tolerant unlike IBM and HP.

He also drubbed SAP as a loser with new licenses down 14% over the last few quarters. The making of Oracle, he said, was its industry-specific apps, which SAP doesn't have, a vindication of a lot of Oracle's acquisitions in recent years. Oracle's Fusion software, its Java rewrite of acquired applications, is right around the corner promising to offer a single integrated suite in which all the pieces fit together.

Ellison claimed he's "just beginning to take share in apps."

Oracle earned $2.6 billion non-GAAP, up 34%, or 51 cents a share when Wall Street thought it would see 46 cents. Oracle itself said it would do 44 cents-46 cents. Non-GAAP operating income was up 33% to $3.8 billion, and its non-GAAP operating margin was 44% with Sun included.

Oracle's quarter ended November 30. It's still smiling from its $1.3 billion jury verdict in its soap opera-like copyright case against its great rival SAP. Its earnings in Q2 include a $120 million that SAP paid to cover its legal fees. SAP is resisting paying the rest.

Oracle says its Q3 should return non-GAAP ESP of 48 cents-50 cents on revenues up 30%-34% in constant currency.

Oracle shares are up 23% this year and are currently at a high.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

IoT & Smart Cities Stories
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...