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Oracle’s Profits Jump as it Moves to the Cloud

March 31, 2011

by Angela Guess

According to a recent article, Oracle’s sales increased 37% over last quarter: “Oracle credits cloud computing for the revenue jump; indeed, Oracle’s databases posted a 29% gain in new license sales.” The article insists that Oracle will continue to do well despite being “late to market with its cloud strategy… The company’s real goal is to rebrand its existing products as ‘cloud’… As clouds are created for public consumption or within the enterprises, Oracle will find a place at the table now and for some time to come.”

The article points to another commenter with a similar view: “Even in cases where NoSQL tools are adopted, traditional databases tend to remain. For example, CERN and CMS adopted Apache CouchDB and MongoDB for certain uses, but kept Oracle for others. And the numbers out from Oracle today suggest that the company’s databases are not just being used by cloud customers, but behind the scenes as well.”

The article continues, “The issue is that Oracle is almost like an infrastructure you can’t get rid of, no matter how expensive, even compared to the value and features of open source alternatives. Too many Oracle-savvy users depend on the core features of the company’s database to build applications, even in the cloud, and they are not willing to change — often for good reason, I’m sure. However, we have to consider the long-term value of not seeking thriftier alternatives.”

photo credit: Oracle

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