Oracle saw software sales rise but hardware sales slump during its first quarter earnings report.
The company's hardware sales dipped 24 per cent from the year prior, while its software licences and cloud subscriptions revenue saw a six per cent jump. Overall, Oracle's revenue was down two per cent.
However, the news didn't completely dampen Oracle's earnings report as net income was reported up 11 per cent in its latest financial quarter.
The big news coming out of the quarter was the major hit to Oracle's hardware sales. The quarter only saw the company pull off $779m from hardware. Although, company executives were quick to point out that software sales did rise during the quarter and earned Oracle $1.6bn in sales.
Oracle chief executive Larry Ellison talked up his company's cloud software prospects during the quarter's earnings call with investors. Ellison is betting big with Oracle's cloud products.
The company is set to unveil major cloud solution announcements at its annual OpenWorld conference in San Francisco.
"A little more than a week from now we will announce lots of enhancements to the Oracle Cloud. There are more CRM, ERP and HCM applications as a service, and more Oracle database, Java and social network platform services," Ellison said.
"Our new infrastructure-as-a-service is available in the Oracle Cloud and as a private cloud in our customers' data center, with the unique ability to move applications and services back and forth between the two."
During the conference call with investors Ellison was asked about the challenges his company faced when dealing with an industry-wide shift towards a more cloud-based strategy.
"You have to be willing to change how you were doing business in the past. Seven years ago we decided to do Fusion. We now have that product available and we've reorganised our salesforce," Ellison said.
"We recognised the change was coming and we did the hard thing. There's a lot of inertia in a big company. It takes a lot of management focus to shift from business as usual."
This year has proven a tumultuous one for Oracle. The company purchased cloud computing personal specialist Taleo for $2bn last February. Oracle also lost a high profile patent infringement case against Google in July.
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