Welcome!

Recurring Revenue Authors: Pat Romanski, Zakia Bouachraoui, Yeshim Deniz, Elizabeth White, Xenia von Wedel

Related Topics: @CloudExpo, Java IoT, Recurring Revenue

@CloudExpo: Article

Oracle Blows It Again

Earnings were okay at 80 cents a share or $3.81 billion; but hardware sales cratered again this time by 13% to $849 million

Larry Ellison is paying for dissing the cloud gods.

He missed his numbers for the second time in a row in his fiscal fourth quarter ended in May, historically Oracle’s strongest quarter, raising questions about Oracle being able to adapt and compete in the new cloud world.

In Q3, Oracle’s salesforce was blamed. This time through the global economy was held responsible for Oracle not closing sales, particularly in Asia and Latin America.

CFO Safra Catz claimed the deals have either gotten smaller or have been pushed back to a later date. They’re not going to rivals, she said, a statement that flies in the face of group think, which figures Oracle’s time is being beat by the cloud subscription set, which put its oars in the water before Oracle did.

Ironically, Larry claims that Oracle’s SaaS business is second only to Salesforce.com, the market leader, and is on track to break a billion dollars annually.

Oracle doesn’t break out its cloud business from new on-premise software sales but the two of them together only tickled its revenues by 1% to $4.03 billion in the quarter. They were supposed to be up as much as 11%, Oracle previously forecast. Still it said it signed 500 new subscription customers in Q4.

Next week, Oracle is going to whistle up the cavalry and announce “startling” alliances with some of “the most important SaaS infrastructure companies,” Ellison said, ticking off Salesforce, Microsoft and his personal favorite, NetSuite, where he’s invested. Evidently they’re going to pledge to move its software.

The deals are supposed to “reshape the perception of Oracle technology in the cloud.”

Overall revenues were flat at $10.9 billion, missing estimates of roughly $11.1 billion.

Earnings were okay at 80 cents a share or $3.81 billion.

Hardware sales cratered again this time by 13% to $849 million. In Q3 they were down 19%. Larry continues to promise there will soon be a pot of gold at the end of this particularly rainbow. So far all it’s gotten is rain, buckets of it.

Exadata machines and other high-end engineered systems now account for more than a third of the company’s hardware business. Oracle delivered 1,200 of the beasts in the fourth quarter.

To make things up to shareholders Oracle doubled its puny six-cent-a-share quarterly dividend to 12 cents and added $12 billion to its buyback fund. It’s also applied to be listed on the New York Stock Exchange, though exactly what benefit that bestows is unclear. Maybe Oracle didn’t like the way the Nasdaq handled the Facebook IPO.

As a result of the news, Oracle shares dropped as much as 9.2% in after-hours trading. Then they settled down a little, off only 8.76% on an otherwise crummy day on Wall Street.

Oracle is now predicting that new software sales and subscriptions will increase 0%-8% this quarter.

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
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
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...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
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...