Cloud business growing at Oracle

Oracle has revealed an increase in revenues in its latest results and revealed its SaaS business is breaking new ground with revenues

Cloud subscriptions are starting to filter into Oracle's finances as the software giant managed to deliver second quarter fiscal results that provided some cheer for investors.

Recent financial updates from the vendor have been downbeat with flat revenues and single digit growth on the cloud side but this time around for the three months ended 30 November revenues improved year-on-year by 2% to $9.3bn.

The EMEA regions saw growth of 3% and the Americas improved by 5% but there was a 10% dip in the Asia-Pacific region, with Japan continuing to be a problem and its China business not yet large enough to offset those challenges.

Net income dropped by a single percentage point to $2.6bn but the vendor was keen to stress the growing cloud side of its business with the $1bn mark having been past on SaaS revenues.

Hardware revenues grew b y 2% to $714m and the firm expects software license and cloud subscription revenues will increase by up to a potential 12% in the next quarter.

"Bookings for our cloud applications grew strongly this quarter, 35%, reflecting a continuously improving win rate versus the new generation of SaaS specialist. Our Engineered Systems bookings also grew rapidly, 34% in this quarter. We think these three product areas, database, cloud applications and engineered systems will drive Oracle's growth in calendar year 2014," said Larry Ellison, CEO of Oracle.

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