Oracle: Another Cloud Success Story
Old warhorses in the tech industry are leaping back into profits and relevance, thanks to their foray into the cloud world. A few days back, Adobe released its results that reflected in success, specifically in the cloud industry. Today, it is Oracle.
Oracle was a relatively late entrant to the cloud market, as rivals like Salesforce.com had already started making a name for itself when oracle decided to enter this market. But that was no deterrent for Oracle as it ploughed its way through competition and has emerged as one of the key players in this industry today.
The latest results announced by Oracle are a testimony to this success. It declared a profit of $10.89 billion, resulting in 89 cents per share. This was way above than what the analysts were expecting, as they were looking for around $10.45 billion in sales and an earnings of 78 cents per share.
These significantly high results took the share price of Oracle to new highs. It touched $51 for the first time, up from the $47 that it was trading the day before the results were announced. This is a significant jump and this could put the potential value of Oracle at around $200 billion, according to a report in MarketWatch.
During the same period last year, Oracle earned 81 cents per share.
The main driver of Oracle’s revenue is definitely the cloud. Total revenue from all cloud related business was $1.36 billion, and this represents a 58 percent increase when compared to last year.
To top it, the company also gave a favorable and positive outlook for the upcoming year. According to its c-founder and Chief Technology Officer, Larry Ellison, Oracle is expecting more big companies to migrate to its cloud platform in the coming year and this means, we can expect more revenue and earnings per share in the future.
Currently, AT&T is one of Oracle’s big customers with more than 10,000 Oracle databases. In an agreement entered into by both the companies, AT&T plans to move thousands more of its databases to Oracle, thereby signaling a deeper relationship, and more importantly, more revenue for Oracle.
Such positive events go well with investors and assuage many of the fears and uncertainties surrounding the tech industry. In fact, such a positive statement from one of the co-founders also contributed to the steady price increase of its shares. That’s not all. It has given a new sense of confidence to its investors and other stakeholders of this company.
All these numbers and statements go to show the power of cloud and how it has changed the landscape of the tech industry. Gone are the days of traditional hardware and licensing because more companies want to move to the cloud to leverage the many benefits that come with it.
It’s up to service providers to enhance their offerings and infrastructure to ensure that more of its clients move to the cloud, so it’s beneficial for everyone involved.