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Oracle: A bright spot in a down economy
While the rest of the economy has been on a downward path since the beginning of the year, Oracle is an exception. At the end of May, Oracle closed out it’s fiscal year with strong growth. Total revenues reached $22.4 billion and net income was up $5.5 billion for the year, up 29 percent from 2007. The gains were strong across the database market, middleware and applications.
“We don’t think in any way that our strategy is running out of gas,” Catz said. But she added: “We are aware of the broader economic environment in which we operate and we can’t predict the economy from one quarter to the next.” Oracle expects he current Q1 2009 current quarter to stay on track with growth somewhere in the range of 18-20 percent.
As for the on-demand market, Oracle may be changing their thinking. While it was only last September that Ellison said that “there’s no money to be made there [in SaaS]”. Ellison commented about the new financials that “Q4 was the first quarter we actually made money in the on-demand business.” It isn’t clear if that comment means that Oracle may be changing course in trying to build a stronger portfolio of SaaS applications. It is clear though with these recent financials that traditional software sales aren’t dead yet.
