Amazon’s cloud services and licensing support revenue in the company’s first fiscal quarter was $50 million lower than expected. As a result, the company’s shares fell by more than 4 percent.
In the past quarter, total sales increased by only 2 percent to 9.2 billion dollars. Cloud services and license support revenue increased 4 percent to $6.61 billion. But analysts had expected sales from this branch to reach $6.68 billion. This means that the company has been 50 million dollars lower than expected.
Revenue from cloud and on-premise licenses amounted to $867 million. That’s not an increase or a decrease. However, there was still some good news for the company. Earnings per share increased by 10 cents compared to the same period last year. This was 71 cents per share, which is better than the 68 cents that analysts expected.
According to top people, however, the lower turnover is not so bad. According to them, the difference lies mainly in the variations of the currency. But analysts don’t think so. “Oracle’s biggest problem with the cloud is that it started so late and even fought against it for a while,” said Patrick Moorhead, president and analyst at Moor Insights & Strategy, opposite Silicon Angle.
Charles King, analyst at Pund-IT, states that the company is stuck between high-growth public cloud companies on the one hand, and hybrid cloud providers offering better roadmaps to enterprise customers on the other. “That’s a hard place to get stuck in.”
What may also be a problem for Oracle in the near future, is that top man Thomas Kurian has taken extended leave. Kurian is in charge of expanding cloud computing at the company. Officially, no reason has been announced for the leave, but there are reports that the top of the company is at loggerheads about the strategy to be followed and that Kurian may be the victim of this.
Oracle itself decided to focus on positive news when announcing its quarterly figures. There is a strong growth in software-as-a-service (SaaS). “The vast majority of ERP applications running in the cloud are either Oracle Fusion or Oracle NetSuite systems,” said CEO Mark Hurd.
According to him, the company has 5,500 customers for Fusion and 15,000 NetSuite-customers. According to Hurd, NetSuite had a “spectacular quarter” with sales growth of 26 percent.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.