Oracle Corp. is making broader shift into the cloud-software market, as it steers longtime enterprise customers out of the in-house databases that made Oracle an information-technology powerhouse, industry analysts said.
Oracle stated that total cloud revenue grew 24% to $2.8 billion in the quarter ending Feb. 28, while company wide revenue was up 4% from a year earlier to $10.51 billion.
For years, Oracle’s main line of business was licensing software for companies’ on-premises databases and providing maintenance and other IT services.
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Cloud remains a relatively small percentage of Oracle’s overall revenue ” said Adam Ronthal, a researcher from consulting firm Gartner Inc. “However, cloud is clearly the focus for delivery of new features and capabilities.” According to WSJ
Oracle has sought to retain its legacy database customers by providing a cloud-based alternative to in-house systems.
Companies are wary of changing database providers, which involves a wholesale transfer of data and applications.
Oracle lags behind cloud market front-runners like Amazon Inc.’s Web Services and Microsoft ’s Azure, as company’s strategy is to make cloud migration as easy as possible for its customers, by merging both technical and strategic support.
Oracle announced a $28.3 billion deal to buy cloud based electronic medical records company Cerner Corp (Oracle’s largest deal to date) in a move aimed squarely at accelerating its cloud-computing business