Sap rival oracle continues to suffer from hardware division
Thanks to savings, however, oracle succeeded in increasing its profit by 8 percent to 2.1 billion dollars compared to the same period of the previous year, as the californian company announced on wednesday at its headquarters in redwood shores. The company thus performed better than analysts had expected.
Oracle has been struggling with poor hardware sales for some time, this time the drop was 14 percent. The group had taken over the server specialist sun microsystems. Oracle makes database software from home. Sales of new software licenses and subscriptions to cloud computing services increased by 5 percent.
Oracle’s hopes for a growth spurt through integrated offerings of software and matching servers have not been fulfilled so far, even though the company emphasizes that new device models are selling well. According to the report, the group wants to come up with even more powerful hardware. At the same time, many companies are turning to cloud services directly from the network, which do not require their own servers.
The share price fell by three percent in the aftermath of the incident. This had mainly to do with the forecast for the current quarter. Oracle warned that figures would not be particularly impressive compared to strong prior-year quarter. For example, software licensing revenue – the mab for future business – could be anything from a four percent decline to a six percent increase without fluctuations in the exchange rate. The turnover was allowed to grow by one to four percent, it hewed.
