Oracle has reported revenue of $9.2 billion (+1 percent) in fiscal 2019 Q1 as the US-based technology company is yet to present a credible challenge to the dominant players in the cloud computing industry.
Oracle said its cloud services and license support plus cloud license and on-premise license revenues rose 2 percent to $7.5 billion.
Oracle’s cloud services and license support revenues grew 3.2 percent to $6.6 billion, while Cloud license and on-premise license revenues were $867 million.
Oracle is a late entrant to the global cloud business and has been playing catch up with rivals, including Amazon.com’s AWS, Microsoft and Salesforce.com, Reuters reported. Alibaba and Google are also emerging in the Cloud computing market.
The company said earlier this year that it would quadruple the number of its largest data centers in its efforts to take a bigger share of the cloud computing market.
The company said it expected revenue to be flat to up 2 percent for the second quarter of fiscal 2019.
Net income of Oracle rose to $2.27 billion in the reported quarter ended August 31 from $2.14 billion.
“The majority of ERP applications running in the cloud are either Oracle Fusion or Oracle NetSuite systems,” said Oracle CEO Mark Hurd.
Oracle said it increased its market share in the first quarter as customers continued to buy Oracle Fusion ERP to replace their existing SAP and Workday ERP systems.
The Oracle Fusion ERP customer base reached nearly 5,500, while NetSuite ERP customer base has crossed 15,000.
“Oracle’s Autonomous Database is faster, easier-to-use, more reliable, more secure and much lower cost than Amazon’s databases. Oracle is the only database that can automatically patch itself while running to protect data from data theft. These are just some of the reasons why Amazon uses the Oracle database to run its business,” Oracle CTO Larry Ellison said in a statement.
Oracle said total cloud revenues grew in all regions and in terms of product categories, ERP grew in the 30 percent plus, verticals grew in the 40 percent plus and public cloud, PaaS and IaaS grew in the 20-plus-percent.
“Oracle has two strategic products that will determine our future. Our cloud ERP product is the strategic key to our success in the SaaS applications layer of the cloud. Our autonomous cloud database is the strategic key to our success in the IaaS or infrastructure layer of the cloud,” Larry Ellison said.
Oracle is already number one in ERP cloud market share with over 20,000 Fusion and NetSuite customers. Customers are buying Fusion ERP to replace their existing SAP on-premise ERP systems. Customers are buying Fusion ERP to replace their existing Workday cloud ERP system.
Salesforce.com uses Oracle to run their Sales Automation Cloud. SAP uses Oracle database to run their cloud services and nearly all their on-premise customers. Even Amazon uses the Oracle database to run most of their business.
Oracle Autonomous Database enables customers to both lower their labor costs and cut their Amazon bill in half by running their Oracle database on Oracle cloud infrastructure. The Oracle Autonomous Database automatically catches itself while running, it prevents data theft.
“These are compelling advantages with the Amazon infrastructure of business that allow us to compete very effectively against Amazon in the infrastructure business. We may be behind Amazon in infrastructure market share, but we are ahead of Amazon in cloud infrastructure technology,”
Latest client wins include: Academy Sports, Airbnb, Conn’s, Legg Mason, City of Sunnyvale, Equity Bank in Europe, Federal Home Loan Mortgage Corporation, Highmark Health, Noble Corporation, Santander Consumer, Saudi Telecom, the State of Nebraska. TIAA, VITAS Hospice Healthcare, Canon, Allnex, Fortis, the government of Saskatchewan; Marriott, Rotary International, Academy Sports, Beckman Coulter, Zebra Technologies, AIG, Emerson Electric, Hermes Parcelnet; Nuance Communications, Network Rail; Reliance Standard Life Insurance Company, Swiss Re, Toronto Dominion, Standard Industries.
Federal Express (FedEx), a traditional Oracle user, bought TNT in Europe that was an SAP user, and they are now going to standardize all of their ERP on Oracle Fusion ERP. FedEx, a customer of Workday, also bought Payroll from Oracle.