Oracle’s second-quarter results for 2015-16 show growth in cloud revenue, which comprises 7% of its overall revenue.
The strong dollar meant its $9bn sales were down 6%, the company said in a statement.
Cloud revenue was $649m, up 26% on the equivalent quarter last year, but still only 7.2% of the overall figure.
Oracle executive chairman and CTO Larry Ellison (pictured) said: “We are still on target to sell and book more than $1.5bn of new SaaS [software as a service] and PaaS [platform as a service] business this fiscal year. That is considerably more SaaS and PaaS new business than any other cloud services provider, including Salesforce.com.”
At the supplier’s most recent Oracle Open World event in San Francisco, Ellison restated the company’s central strategic option for the cloud, and dismissed competitors’ offerings, including those of SAP and IBM. “We never see them,” he said about competing bids for cloud business.
Oracle’s cloud software as a service and platform as a service revenues were $484m, up 34%. Cloud infrastructure as a service revenues were $165m, up 7%.
Most of Oracle’s revenue still comes from on-premise software installations. Total revenue there was $6.4bn, down 7%.
Hardware revenues were $1.1bn, down 16%, and services revenues were $861m, down 8%.
Operating income was $3bn with a margin of 33%.
Read more enterprise software results
- SAP’s third-quarter 2015 results show overall cloud revenue growth of 116% year on year, and SAP European president Cohen says parallel on-premise growth is strong.
- In its 2016 first-quarter fiscal report, Oracle shows off increases in PaaS and SaaS revenues and licences, and downplays drop in total revenue.
- Microsoft’s annual profits dropped again after it spent $190m on business restructuring and integrating Nokia Devices and Services business.
Safra Catz, co-CEO at Oracle, said: “We grew our SaaS and PaaS revenue by 38% in constant [US] dollars this past quarter, and we expect that revenue growth rate to accelerate to nearly 50% in Q3 and close to 60% in Q4.”
Fellow co-CEO Mark Hurd said: “We did 100 Fusion HCM [human capital management] deals and over 300 Fusion ERP [enterprise resource planning] deals in the quarter. We now have more than 1,500 ERP customers in the cloud – that’s at least 10 times more ERP customers than Workday.”