Access and Feeds
blog-alfresco

The most popular and comprehensive Open Source ECM platform

Let us know more

Oracle: Awash in Maintenance Dollars

Home › Oracle › Oracle: Awash in Maintenance Dollars

By Dick Weisinger

Oracle recently closed their fourth quarter books, reporting mixed results in terms of revenue.   But one eye-popping number was Oracle’s Operating Margins — 51%.  That’s the highest margin ever reported by Oracle, and it blows away the results from most if not all industry vendors.

How do they manage to do it?  Not by new sales, but through maintenance dollars.  Oracle charges 22% annual maintenance fees, and many customers are on maintenance.  Revenues from maintenance are topping revenues from new software sales.  Annual maintenance fees came in at $12 billion and revenues for new licenses for technology, applications and services came in at $11.5 billion.

Oracle co-president Sandra Catz said that “the reality is that the margin story really has to do with the fact that we have an enormous installed base of customers that renew their agreements with us every year and the bigger that number becomes.”

One has to wonder though whether Oracle will be able to continue turning in numbers like these.  Ellison has said that they’re 10 years away from fully including a SaaS strategy in their arsenal.  Competitors with SaaS and Open Source models are bound to be setting their sights on Oracle now.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

  • Legal Terms & Disclaimers

    This blog site is accessed from the website of Formtek, Inc. All visitors to or users of this blog site are subject to the terms and conditions and privacy policy that govern the Formtek website, links for which are provided above.

    Some of the individuals posting to this blog site, including the moderators, work for Formtek. Postings by these individuals are the personal opinions of these individuals, not of Formtek. Their posted content is provided for informational purposes only and is not meant to be an endorsement or representation by Formtek or any other party. Postings to this blog site may be outdated, invalid or inaccurate by the time you read them. Individuals posting to this blog site make no statements, representations or warranties as to the timing, validity, accuracy or reliability of their postings.

    This blog site may contain links to third party sites. Access to any third party site linked to this blog site is at your own risk. None of Formtek, the blog site moderator(s) and the individuals posting on this blog site that work for Formtek is responsible for the timing, validity, accuracy or reliability of any information, data, opinions, advice or statements made on these third party sites. These links are provided merely as a convenience and do not imply any endorsement.

    Postings to this blog site are available to the public. You should not post, link to or otherwise upload any information considered confidential to this blog site. All postings to this blog site are moderated. Postings will appear if and when they are approved by the moderator. Notwithstanding any approval by the moderator, by posting information to this blog site, you agree to be solely responsible for the information you post, link to, or otherwise upload to the blog site. You agree to release Formtek from any liability related to that information or to your use of the blog site. You grant Formtek a worldwide, perpetual, irrevocable, royalty-free, fully-paid, and transferable (including rights to sublicense) right to exercise all copyright, publicity, and moral rights with respect to any information you post, link to or otherwise upload to this blog site.

    • © Copyright 2003-2024   Formtek, Inc.