Oracle Cloudware Sales Up, Licensing and Hardware Down
Cloud software and platforms as services rose a robust 77 percent year over year, but hardware sales were down 19 percent and licensing was off 11 percent.If one were to chart where Oracle's several businesses have been and are headed in the future, the chart would show one arrow headed decidedly up and to the right and two others slipping markedly down and to the right. The Redwood City, Calif.-based database and data center middleware giant is selling cloud services faster than it ever has, but its hardware business continues to fade alarmingly, and its traditional on-premises license renewals—once the mainstay of the entire company—also are moving into what may become a free fall. Putting this all together, the company on Sept. 15 reported lower-than-expected Q1 2017 revenue because growth in its cloud-based subscription services failed to make up enough revenue to cover for those weaknesses in hardware and traditional data center software. Sales of Oracle's cloud software and platform as services rose a robust 77 percent year over year to $798 million, while sales of its new on-premises software licenses fell 11 percent to $1.03 billion.
Hardware sales—mainly consisting of high-performance database, server and storage machines—slipped 19 percent in the U.S. to $462 million and have dropped in double figures for several quarters in succession.