Ahead of next week’s Oracle Open World, which I’m attending, the software giant has announced its quarterly results which illustrate how software has shifted to the cloud.
The company’s cloud revenues jumped 77% on the previous year which is impressive but represents less than a tenth of the company’s sales.
What would concern Oracle’s shareholders is the stagnation of sales in their main product lines – on premise software makes up 69% of the firm’s revenue but it didn’t grow for the quarter and new license sales dropped eleven percent, which doesn’t bode well for the future.
Oracle’s big announcement in the last quarter though was the acquisition of cloud ERP provider Netsuite for $9.3 billion.
That acquisition will test how Oracle pivots into the cloud, it may well be the Netsuite management teach the parent company some tricks.