Oracle claims cloud business worth $1 billion

News Rene Millman Dec 20, 2012

Software giant talks up cloud growth during financial performance discussion

Software giant Oracle claims its cloud business would close in on the one billion dollar mark, as it provided industry watchers with a sneaky peek at its latest quarterly figures.

Operating earning for the company was down 64 cents a share, or $4.3 billion, as revenue rose 3 per cent to $9.1 billion. Net income, excluding some items, rose 12 per cent to $3.1bn.

“We have had a really excellent quarter,”  Oracle chief financial officer Safra Catz told an analyst conference call.

It reported a 17 per cent increase in new software licence revenues and cloud software subscriptions.

Oracle president Mark Hurd said its cloud business is already approaching revenue of close to $1 billion.

“Q2 performance was strong and broad based as all geographies reported double-digit revenue growth in new software license and cloud subscriptions," said Hurd. "Already approaching a one billion dollar run rate, our cloud business will become much bigger over time.”

Oracle has made several acquisitions over the last few years to bolster its cloud credentials.

In November, it purchased project portfolio firm Instantis for an undisclosed sum and earlier this week bought big data firm Dataraker, also for an undisclosed fee. The company continues to push its Exadata and Exalogic platforms for building public and private clouds.

Up until recently, Oracle chief Larry Ellison was famously dismissive of the cloud. But this appears to have changed, if the keynote presentation he gave at the firm's Oracle Open World conference is anything to go by.