Welcome!

Log Management Authors: Dana Gardner, Pat Romanski, Elizabeth White, David H Deans, Carmen Gonzalez

Related Topics: Recurring Revenue, Java IoT, Log Management, @CloudExpo

Recurring Revenue: Article

Oracle Sales Surge 47%

Larry spits in HP’s eye again

Oracle's fiscal Q2 revenues were up 47% to $8.6 billion, ahead of expectations of $8.3 billion. Its performance was nothing like poor Cisco, suggesting that maybe the portents aren't as bad as the doom merchants say.

The all-important new software license revenues were up 21% to $2 billion.

Oracle co-president Safra Catz, who predicted only 6%-16% growth last quarter, credited "company-specific momentum" for the 21% uptick in new licenses.

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

Sun hardware and support revenues were worth $1.75 billion, roughly 20% of Oracle's total, with a gross margin on hardware of 53%.

Oracle co-president Mark Hurd said the pre-packaged hardware/software Exadata appliance pipeline is now worth nearly $2 billion.

He claimed the number "is a good leading indicator that customers are planning to increase their investment in Oracle technology." Guess he was thinking of the people who thought buying Sun was a dumb idea and that albatross couldn't be turned around.

Oracle is expecting "more meaningful" hardware growth next year. The Exadata box, soon to be followed by the Intel- and Solaris-based Exalogic machine, has been sold in 50 countries, Hurd said, with 30%-35% of its initially hesitant customers moving to their second box and others coming off pilots and starting to write checks.

During the Thursday conference call CEO Larry Ellison targeted HP, rather than IBM, as an easier mark. That's his second swing with that bat.

HP's machines, he said, are "slow, expensive and add little or no software value." Although both IBM and HP are ahead of Oracle in the high-end OLTP and data warehousing space, he predicted that Oracle would soon be number two. HP, he said, will "lose share next year."

Reportedly - and this comes from an HP source - 70% of Exadata sales are replacing HP machines, which kinda explains Oracle change in tact from anti-IBM to anti-HP, now doesn't it?

Larry thinks he's got so-called Big Data covered with what he's got in-house, which is fault-tolerant unlike IBM and HP.

He also drubbed SAP as a loser with new licenses down 14% over the last few quarters. The making of Oracle, he said, was its industry-specific apps, which SAP doesn't have, a vindication of a lot of Oracle's acquisitions in recent years. Oracle's Fusion software, its Java rewrite of acquired applications, is right around the corner promising to offer a single integrated suite in which all the pieces fit together.

Ellison claimed he's "just beginning to take share in apps."

Oracle earned $2.6 billion non-GAAP, up 34%, or 51 cents a share when Wall Street thought it would see 46 cents. Oracle itself said it would do 44 cents-46 cents. Non-GAAP operating income was up 33% to $3.8 billion, and its non-GAAP operating margin was 44% with Sun included.

Oracle's quarter ended November 30. It's still smiling from its $1.3 billion jury verdict in its soap opera-like copyright case against its great rival SAP. Its earnings in Q2 include a $120 million that SAP paid to cover its legal fees. SAP is resisting paying the rest.

Oracle says its Q3 should return non-GAAP ESP of 48 cents-50 cents on revenues up 30%-34% in constant currency.

Oracle shares are up 23% this year and are currently at a high.

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
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
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.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
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...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...