• Home
  • Reseller
  • Distributor
  • Vendor
  • Finance and M&A
  • People moves
  • Cloud
  • Technology and trends
  • Women in channel
  • Events
  • A-list
  • Top VARs
  • Printer Supplies
  • Women in Channel
  • CRN Essential
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
     
    • Please contact your account administrator for more information on your access.

  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • Facebook
    • YouTube
  • Register
  • CRN Essential
  • Events
    • Upcoming events
      View all events
  • Whitepapers
    • LATEST WHITEPAPERS
      What are the opportunities for the channel with the growth of AI?

      Encryption, privacy, & data protection: a balancing act

      This white paper examines the risk posed by encrypted threats; considers the business, privacy, and security implications of managing that risk; and presents constructive measures for balancing security needs with employee privacy rights. In the end, the best way for IT leadership to ensure the rights of the individual employee is to protect the organization from threats and attacks.

      Download
      How do MSPs really feel the channel will shape up by 2020?

      On borrowed time?

      Cybercrime has become a huge part of our economy and it is a topic that is getting more and more attention in the news media. The cybercriminal stories making headlines involve big companies such as British Airways and Marriott etc. However, smaller companies are just as susceptible to cyber- attacks. Often these attacks are much more damaging to smaller businesses, sometimes forcing them to shut down completely. One report from Verizon claims that 43% of email attacks target SMBs.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • A-list
  • Top VARs
  • Printer Supplies
channelweb
channelweb
  • Home
  • Reseller
  • Distributor
  • Vendor
  • Finance and M&A
  • People moves
  • Cloud
  • Technology and trends
  • Women in channel
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
 
  • Please contact your account administrator for more information on your access.

  • Financial and Reporting

Oracle swipes at AWS, Microsoft and Salesforce as cloud revenue hits $1bn

Cloud now makes up 11 per cent of Oracle's total revenue, hitting double digits for the first time

Oracle swipes at AWS, Microsoft and Salesforce as cloud revenue hits $1bn
  • Tom Wright
  • Tom Wright
  • @TomWrightCRN
  • 16 March 2017
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

Oracle has laid down the gauntlet to Amazon Web Services (AWS), Microsoft and Salesforce after its quarterly cloud revenue hit $1bn for the first time.

For the three months ending 28 February 2017 Oracle posted a total revenue of $9.2bn (£7.5bn), up two per cent on the same period last year.

Related articles

  • Charterhouse boss: 'We will absolutely make more acquisitions this year'
  • BT sets up new 'Digital' technology unit
  • Sapphire Systems expands US footprint with Pioneer B1 buyout
  • Wearables market lifted by Covid pandemic

Total cloud revenue was up 62 per cent year on year to just under $1.2bn, taking cloud's contribution to Oracle's total revenue into double digits for the first time at 11 per cent.

On an earnings call, a transcript of which can be found on Seeking Alpha, Oracle co-CEO Safra Catz claimed that Oracle's cloud revenue will surpass its new software licensing revenue next year.

"Our pivot to the cloud is now clearly in full strength," she said. "We continue to see outside growth rates in our cloud business, especially when compared with our key competitors who are all seeing slowing growth.

"More importantly, the increase in revenue from our cloud business has overtaken new software licence business decline on an annual basis.

"Next year I expect our cloud revenue will be larger than our new software licence revenue."

TechMarketView analyst Angela Eager said in a blog post that while Oracle's cloud growth looks promising, it still has some way to go to reach the likes of AWS.

"[Oracle chairman] Larry Ellison makes much of Oracle's desire to challenge Amazon Web Services in IaaS [infrastructure as a service] - at the moment it is long-range gazing at AWS' $3.5bn revenue from its latest quarter," she said.

"There is no doubt that Oracle is continuing to make cloud progress from a technology and a customer adoption perspective, but there are a couple of items of note.

"Q3 SaaS/PaaS [software as-a-service/platform as-a-service] revenue was boosted by the NetSuite contribution and Saas/PaaS growth was slightly down on the 81 per cent growth of Q2. The IaaS business - that is being signposted to eventually be Oracle's largest and fastest-growing cloud segment - is a long way from proving itself.

"When commenting on Oracle's Q217 results, we questioned whether it had bottomed out on its cloud transition; a quarter on and we think it has."

Sticking it to the competition

Senior Oracle executives were bullish when speaking of their completion in the cloud space, claiming to be cheaper than AWS and on course to surpass Salesforce's cloud revenue.

"We have hundreds of thousands of database customers and we have millions and millions of applications that run on the Oracle database," Ellison said.

"Most of those databases and most of those customers will move most of their databases and most of these workloads to the cloud. Right now we have a huge technology lead over both Amazon and Azure with our new generation-two IaaS.

"Generation two of Oracle's IaaS cloud now has the ability to run customers' largest databases, something that is impossible to do using AWS. Amazon can only run relatively small Oracle databases in their cloud.

"Many Oracle workloads now run 10 times faster in the Oracle cloud versus the Amazon cloud [and] it also costs less to run Oracle workloads in the Oracle cloud than the Amazon cloud."

Co-CEO Mark Hurd said the vendor's cloud progress has left it hot on the tail of Salesforce, which reported revenue figures that were below expectations at the end of February.

"Over the last year, we sold more new SaaS and PaaS than Salesforce.com, and we're growing more than three times faster," said Hurd. "If these trends continue - where we are selling more SaaS and PaaS in absolute dollars and growing dramatically faster - it's just a matter of when we catch and pass Salesforce.com in total cloud revenue."

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Financial and Reporting
  • Vendor
  • Oracle
  • aws
  • Microsoft
  • Azure

More on Financial and Reporting

Wearables market lifted by Covid pandemic

Pandemic prompts spending boom on smartwatches, ear-worn devices and other wearables, Gartner figures show

  • Vendor
  • 12 January 2021
'PCs are here to stay' - All the key info as PC market hits highest growth figures in a decade

Analysts praise commitment of channel and PC industry during COVID pandemic

  • Reseller
  • 11 January 2021
Agilitas logs record revenue and profit growth

Channel services firm's EBITDA hits £3.8m

  • Financial and Reporting
  • 06 January 2021
Cloud firm Pax8 raises $96m in new funding

Cloud commerce platform had previously raised $64m in funding

  • Financial and Reporting
  • 06 January 2021
Apple exec bonuses will be 'modified' based on how they perform against ESG values

Executives will see their bonuses either cut or raised by up to 10 per cent depending on how they perform according to the tech titan's core values

  • Vendor
  • 06 January 2021

More news

Charterhouse boss: 'We will absolutely make more acquisitions this year'
  • Reseller
Charterhouse boss: 'We will absolutely make more acquisitions this year'

Mark Brooks-Wadham reveals further M&A plans to CRN and why the UC market is seeing so much consolidation lately

  • 12 January 2021
BT sets up new 'Digital' technology unit
  • Enterprise
BT sets up new 'Digital' technology unit

Organisation also undergoes leadership reshuffle as chief strategy and transformation officer Mike Sherman departs

  • 12 January 2021
Sapphire Systems expands US footprint with Pioneer B1 buyout
  • Reseller
Sapphire Systems expands US footprint with Pioneer B1 buyout

Deal marks second in five days for London-based Sapphire Systems

  • 12 January 2021
Wearables market lifted by Covid pandemic
  • Vendor
Wearables market lifted by Covid pandemic

Pandemic prompts spending boom on smartwatches, ear-worn devices and other wearables, Gartner figures show

  • 12 January 2021
blog comments powered by Disqus
Back to Top

Most read

9 channel stalwarts reveal their 2021 predictions
9 channel stalwarts reveal their 2021 predictions
OUR TAKE: 5 key issues facing UK channel bosses in 2021
OUR TAKE: 5 key issues facing UK channel bosses in 2021
Daisy spin off Digital Wholesale Solutions confirms private equity sale
Daisy spin off Digital Wholesale Solutions confirms private equity sale
Charterhouse kicks off new year with pair of acquisitions
Charterhouse kicks off new year with pair of acquisitions
Insight selected to deliver £35m Microsoft cloud deal to Cheshire councils
Insight selected to deliver £35m Microsoft cloud deal to Cheshire councils
  • Contact
  • Marketing solutions
  • About Incisive Media
  • Terms & conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • Facebook
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading