Oracle has reported revenues of $8.4bn for its first fiscal quarter of 2016, a two percent decline on the same period last year.
However, Oracle was hit by the currency exchange caused by the strong dollar, which meant that revenues were actually up seven percent on a constant-currency basis.
Oracle touted the growth of its various cloud divisions as the standout aspect of the quarter, with overall cloud revenues at $611m, up 29 percent year on year. This comprised $451m from software-as-a-service (SaaS) and platform-as-a-service (PaaS) tools, and $160m from infrastructure-as-a-service (IaaS).
Oracle founder and chief technology officer Larry Ellison claimed that the figures show the company on track to reach $2bn in cloud revenues in the 2016 fiscal year.
“That means Oracle would sell between 50 percent more and double the amount of new cloud business than Salesforce.com plans to sell in its current fiscal year,” he said.
“Oracle is the world’s second largest SaaS and PaaS company, but we are rapidly closing in on the number one.”
However, the bulk of Oracle’s revenues still come from on-premise offerings, which accounted for $5.8bn. This was down four percent year on year, but four percent up on constant currency.
Oracle chief executive Safra Katz said on the earnings call to discuss the results that, while cloud still represents only a fraction of the firm's earnings, it expects this to become more meaningful in the years ahead as businesses embrace the cloud.
"Over time, we expect the cloud will result in more revenue and profit for Oracle as we take share from legacy on-premise competitors, other cloud competitors who are limited to point solutions and the labour suppliers who can’t possibly offer what we have already built," she said.
Ellison too was bullish on this future growth, saying that the firm is moving from the "startup phase of our cloud business" to the "rapid growth, scale-out phase".
"We are adding thousands of new SaaS, PaaS, IaaS and data customers to our existing data centres. With all that customer growth on top of our existing infrastructure, we expect that our cloud margins will double over the next two years," he added.
Joint Oracle CEO Mark Hurd also gave some more insights on the firm's customer growth, revealing that 612 new SaaS customers signed up in the quarter, while another 200 are now running Oracle ERP tools, double the number in Q1 2015.
These customers include the US Department of Energy, Lenovo, LG Electronics, Royal Mail, Motorola, Virgin Atlantic, Aer Lingus and Verizon.
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