Oracle claims second-largest SaaS vendor title, while Q4 profits slip

Oracle's hardware business showed a slight gain in the quarter

Oracle's earnings for the past five financial quarters

Oracle's earnings for the past five financial quarters

Oracle is now the industry's second-largest SaaS vendor after Salesforce.com, but it made that announcement as fourth-quarter profits slipped slightly and on-premises software license sales ended the fiscal year flat.

Revenue for the fourth quarter, which ended May 31, rose 3 percent to US$11.3 billion, while net income fell 4 percent to $3.65 billion.

New software license sales in the quarter were $3.77 billion, the same as in the prior fourth quarter. Software license updates and product support was $4.7 billion, a 7 percent rise.

But SaaS (software-as-a-service) and PaaS (platform-as-a-service) revenue rose 25 percent to $322 million and IaaS (infrastructure-as-a-service) sales jumped 13 percent to $128 million.

"Oracle is now the second largest SaaS company in the world," CEO Larry Ellison said in a statement. "In SaaS, we're in front of everybody but Salesforce.com. In IaaS we're larger and more profitable than Rackspace. We plan to increase our focus on the cloud and become number one in both the SaaS and the PaaS businesses."

The quarter showed signs of life for Oracle's hardware business, which had seen revenue drop steadily since the company got into hardware with the acquisition of Sun Microsystems.

Hardware systems product sales grew 2 percent to $870 million, as did hardware systems support, to $596 million.

Oracle has focused on selling "engineered systems" like Exadata rather than commodity hardware.

"We have transformed Sun's commodity hardware business into a profitable and growing Engineered Systems business," Oracle co-President Mark Hurd said in a statement. "We saw record levels of Engineered Systems shipments and expect to deliver our 10,000th unit in Q1."

For the full year, revenue was up 3 percent to $38.3 billion, while net income was flat at $11 billion.

Executives are expected to discuss Oracle's results further on a conference call Thursday.

(More to follow.)

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Oraclebusiness issuessoftwarefinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?