Welcome!

Recurring Revenue Authors: Elizabeth White, Yeshim Deniz, Zakia Bouachraoui, Pat Romanski, 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
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
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...
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...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
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...
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...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
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...