Oracle said its Q4 revenues fell 5 percent to $10.7 billion and targets to become the world’s largest enterprise cloud company by taking on rival Salesforce.com.
The strengthening of the U.S. dollar compared to foreign currencies has impacted the revenue of Oracle.
Oracle said Software and Cloud revenues dropped 6 percent to $8.4 billion. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues grew 29 percent to $416 million. Oracle Cloud infrastructure as a service (IaaS) revenues increased 25 percent to $160 million. Hardware Systems revenues decreased 4 percent to $1.4 billion.
Oracle said its Q4 operating income was $4 billion.
Software and Cloud revenues of Oracle rose 1 percent to $29.5 billion. Oracle said its Cloud SaaS and PaaS revenues grew 32 percent to $1.5 billion. Cloud IaaS revenues grew 33 percent to $608 million. Hardware System revenues fell 3 percent to $5.2 billion.
Oracle CEO Safra Catz said the company sold $426 million of new SaaS and PaaS annually recurring cloud subscription revenue in Q4.
“We expect to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year,” said Oracle Executive Chairman and CTO Larry Ellison. “That means Oracle would sell more new SaaS and PaaS business than salesforce.com plans to sell in their current fiscal year.”
Oracle’s planned SaaS and PaaS revenue growth rate is around 60 percent. Salesforce.com has a planned growth rate of around 20 percent.