Oracle CEO Larry Ellison on Thursday said the software vendor is aiming to become the number one in both the software-as-a-service (SaaS) and platform-as-a-service (PaaS) businesses.
This means, Oracle is keen to bring more solutions to compete against salesforce.com in the SaaS segment and Amazon in the IaaS / PaaS market.
Oracle is now the second largest SaaS company in the world, behind salesforce.com.
In IaaS, Oracle is larger and more profitable than Rackspace.
Oracle’s confidence in the SaaS and PaaS markets reflects in its fourth quarter results. Its SaaS and PaaS revenues increased 25 percent to $322 million. On the other hand, Oracle said SaaS and PaaS revenues rose 23 percent to $327 million.
The company needs to re-invent now because its fiscal Q4 and full year revenue rose just 3 percent, while net income growth is almost flat in fiscal 2014.
“We have by far the most complete portfolio of modern SaaS and PaaS products in the industry: CRM: Sales, Service & Marketing; HCM: HR, Payroll & Talent; ERP: Accounting, Procurement, Supply Chain & more,” said Oracle CEO Larry Ellison.
Synergy Research Group earlier noted that Amazon (AWS) is leading the IaaS/PaaS market, despite Microsoft, Google and IBM exceeding its growth rate in the fourth quarter of 2013.
Microsoft and IBM almost doubled their IaaS/PaaS revenues in Q4 of 2013 over the fourth quarter of 2012. Amazon grew by 65 percent and increased its market share to over 30 percent.
Ellison said, after the quarterly result, that all these SaaS products run on the world’s most powerful PaaS: the Oracle in-memory multitenant database and Java.
“We plan to increase our focus on the Cloud and become number one in both the SaaS and the PaaS businesses,” he added.
Meanwhile, Oracle said its fiscal 2014 Q4 revenues rose 3 percent to $11.3 billion.
Software and Cloud revenues grew 4 percent to $8.9 billion.
Cloud software-as-a-service (SaaS) and platform-as-a-service (PaaS) revenues increased 25 percent to $322 million.
SaaS and PaaS revenues rose 23 percent to $327 million.
Cloud infrastructure-as-a-service (IaaS) revenues increased 13 percent to $128 million.
New software licenses revenues were unchanged at $3.8 billion.
Software license updates and product support revenues were up 7 percent to $4.7 billion.
Overall hardware systems revenues were up 2 percent to $1.5 billion with hardware systems products up 2 percent to $870 million, and hardware systems support up 2 percent to $596 million.
Full year revenue
For fiscal year 2014, revenues increased 3 percent to $38.3 billion.
Software and Cloud revenues rose 5 percent.
Cloud SaaS and PaaS revenues grew 23 percent to $1.1 billion, while Cloud IaaS revenues were $456 million.
New software licenses revenues were unchanged at $9.4 billion while software license updates and product support revenues were up 6 percent to $18.2 billion.
Total hardware system revenues were flat at $5.4 billion.
Operating income rose 1 percent to $14.8 billion.