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Oracle makes $2bn software sales as executives talk up hardware

Oracle sold $2billion new software licences in its second quarter of 2010. Software license updates and product support revenues were up 12% to $3.6...

Oracle sold $2billion new software licences in its second quarter of 2010.

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

Oracle President, Safra Catz, said: "Our new license growth of 21% demonstrates the strength of the company-specific momentum we are seeing. And our Sun business continues to improve with hardware gross margins increasing to 53%."

Since its acquisition of Sun, Oracle has shifted focus to include hardware, and is selling database appliances. According to Oracle President, Mark Hurd, businesses are keen to hear more about the hardware database systems. "That enthusiasm translates into an Exadata pipeline that has now grown to nearly $2 billion. That number is a good leading indicator that customers are planning to increase their investment in Oracle technology."

Oracle CEO, Larry Ellison, said: "Our new generation of Exadata, Exalogic and SPARC Supercluster computers deliver much better performance and much lower cost than the fastest machines from IBM and HP."

ComputerWeekly.com Comment

With 21% of its revenue coming from hardware and hardware support, the acquisition of Sun has made Oracle a hardware company. This is demonstrated by how Ellison, Hurd and Catz describe the hardware business. It's clear that Sun will become Oracle's new integrated hardware database server through its Exadata family.

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