Oracle Q1 results + News

Hello all,

I wanted to share a brief update on Oracle Q1 results and my take on them. There is also some cloud news coming out of Oracle. Oracle is hosting its large event Oracle cloud world in Las Vegas on Oct 17-20th, expect more news to be announced then.

Oracle Q1 results

Oracle quartery revenue is up 23%, - this is a fantastic figure. Oracle has not had much growth in recent years. This growth is party driven by the Cerner aquisition. But if you exclude the Cerner aquisition Oracle Year on Year growth is 8%.

• Oracle Cloud Growth was 50% and is now $ 3,6 billion
• IaaS growth is 52% and is now $ 0,9 billion.
• Oracle SaaS growth is $ 2,7 billion up 43%
• Fusion ERP Cloud is up 33%
• Netsuite ERP cloud is up 27%
• OCI growth is up 103%
• License sales is up 11% and was driven largely by Java and database options. - License sales is now only 8% of Oracle combined total revenues.
• Hardware growth was 0% and is 7% of total revenue
• Oracle is mentioning that they are having success in renewing Oracle ULAs and it is largely due to BYOL advantages.

My analysis

Oracle cloud is finally growing at a rapid pace. The numbers we have seen in the past have been low double digits figures. Now Oracle OCI is 103% growth, albeit from small numbers. But it is substantial. We are assisting companies who to design large Oracle OCI contracts, where there is multi million dollar commitments. A few years ago that was very rare.

That Oracle SaaS is doing well is no news to anyone, most of the Oracle applications, including EBS consulting engagements we are engaged in is for someone who is considering moving to Oracle Cloud and wants our help understanding what licenses to purchase and how to design their contract with minimum waste.

Oracle on premise license sales is only 8% of total revenues, its a good number to keep in mind. Oracle primary focus is now longer to sell licenses its not a large part of their revenue. Its cloud and annual maintenance. We expect a bump in Oracle figures for Q3 and Q4 when Oracle support increase of 8% will make an impact. If you want to avoid the 8% increase, I have written a piece about this here.

I find it quite interesting that Oracle on premise license revenue is increasing for the second year in a row, after Oracle changed the way their are conducting license audits.

Oracle cloud news

Oracle announced that they are opening a cloud data centre in Spain. It is now live and Oracle currently have 40 data centers. Read the press release here.

As we know Oracle database cloud services can now be provisioned on Microsoft Azure, this includes Oracle database cloud services, Exadata Cloud Service and Autonomous database cloud service. But Oracle as now made MySQL HeatWave database available on AWS. This was previously communicated as an OCI unique feature. Oracle is writing its in press release that HeatWave will also be available on Microsoft Azure.

I hope you enjoyed the reading, feel free to send me a message if you are interested to find out how my company, Redress Compliance can support your organization.