During a first look at Oracle’s latest quarterly report, it seems that it has not happened so much. Both sales and profits are largely unchanged from the same quarter last year.
Class=”paragraphIntro”> But the quarter ended November 30 invites at a closer look at some interesting details. To begin with is the fact that sales only increased two percent, with an earnings decrease of one percent, remarkable in an industry that is very much fueled by growth.
class=”paragraphIntro”> Even more interesting is where their income comes. The gist of the analysis is that the fastest growing area for Oracle’s software support contract and renewal of existing software licenses.
class=”paragraphIntro”> The evil analysis is the activity that provides the best increase in revenue is to torment existing customers with complicated contracts. Kind analysis is that Oracle’s software customers are so satisfied that they will happily pay support contracts and extends licenses. The truth is almost certainly somewhere between the two extreme interpretations.
class=”paragraphIntro”> What is unequivocally is that new sales of traditional software and cloud services does not increase right now, it is in virtually identical when compared with last year. And it is serious for Oracle. There is a limit to how much money a software vendor can squeeze out of existing customers and the boundary decreases with time. Oracle needs to find new software customers, both new customers and existing ones that purchase new software and service.
class=”paragraphIntro”> The hardware side is unchanged in terms of revenues, but by all accounts occurs a major restructuring towards turnkey servers, especially the various Exa products that are increasing sharply. But Oracle selling traditional software licenses to the turnkey systems, so it is unclear how much of the total revenue from turnkey servers counts as software and hardware sales.
class=”paragraphIntro”> conclusion for hardware In any case, that Oracle has struggled with traditional Sunservrar. So it must be because the total for the hardware is unchanged, while turnkey servers increases. Add to it that there are positive reports on sales of storage products. It should strengthen the thesis of problems with Sunservrarna. Or at least that sales of the new Sunmodellerna not started yet.
class=”paragraphIntro”> From Oracle Sweden will almost euphoric reports of the past quarter. Sweden manager Chris Berry talks about “a great quarter.” On the hardware side, deals were closed, including Nordea, Skanska, the Tax and Social Insurance. Exa products are doing well, as well as storage solutions. On the software side include trades with SKF, Ica, Scania, Volvo and SJ.
class=”paragraphIntro”> There is no poor customer list.
class=”paragraphIntro”> conclusion, I not sleep completely quiet if I were Oracle CEO Larry Ellison. Certainly there are many areas joy for Oracle, but also niches that are sluggish. I would think that Sweden manager Chris Berry sleep better.
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