News.
22. March 2013

Cloud saves Oracle’s Quarter Results

Management impacted by increased Q3 market expectations
Cloud is not the solution for all problems

It is calling for a brutal rally to avoid the first fiasco in an otherwise remarkable success story of this software giant. Revenue hits in hardware, hardly growth in software, and just a little light for the cloud segment that doubled its small size: This was not the plan of top sales strategists around President Mark Hurd when hiring more than 4000 new sales recently. A slight increase of gross profit is a result of the stock buyback program and does not really change the picture. Even traditional cash cows like data base technology are staggering and it feels like the market leader finally has to learn that growth has its limit.  The legal battle around Itanium with HP only makes things worse. And suddenly Mark Hurd is pulled into the battle around Dell to play the sales engine? With that kind of news, who will believe in quick recovery!

What does it mean for You?

Oracle Management shows a bad performance. Buyers can use such situation in this final quarter to their advantage during negotiations and can expect more leverage for additional purchases. The benchmark data of License12 are a clear indication for Oracle’s increased pressure to sell. The discount bandwidth has widened, compared to earlier quarters. Now it’s the time to ask for more!

(Source: Oracle)

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