{"id":906,"date":"2009-08-13T07:00:56","date_gmt":"2009-08-13T15:00:56","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=906"},"modified":"2009-08-13T07:00:56","modified_gmt":"2009-08-13T15:00:56","slug":"oracle-awash-in-maintenance-dollars","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/oracle-awash-in-maintenance-dollars\/","title":{"rendered":"Oracle: Awash in Maintenance Dollars"},"content":{"rendered":"

Oracle recently closed their fourth quarter books, reporting mixed results in terms of revenue.\u00a0\u00a0 But one eye-popping number was Oracle’s Operating Margins — 51%.\u00a0 That’s the highest margin ever reported by Oracle, and it blows away the results from most if not all industry vendors.<\/p>\n

How do they manage to do it?\u00a0 Not by new sales, but through maintenance dollars.\u00a0 Oracle charges 22% annual maintenance fees, and many customers are on maintenance.\u00a0 Revenues from maintenance are topping revenues from new software sales.\u00a0 Annual maintenance fees came in at $12 billion and revenues for new licenses for technology, applications and services came in at $11.5 billion.<\/p>\n

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.”<\/p>\n

One has to wonder though whether Oracle will be able to continue turning in numbers like these.\u00a0 Ellison has said that they’re 10 years away from fully including a SaaS strategy in their arsenal.\u00a0 Competitors with SaaS and Open Source models are bound to be setting their sights on Oracle now. <\/p>\n

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Oracle recently closed their fourth quarter books, reporting mixed results in terms of revenue.\u00a0\u00a0 But one eye-popping number was Oracle’s Operating Margins — 51%.\u00a0 That’s the highest margin ever reported by Oracle, and it blows away the results from most…<\/span><\/p>\n

Read more ›<\/a><\/div>\n

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