Oracle clouds never go down, says Oracle's Larry Ellison

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Oracle execs are each smiles pursuing a stellar showing for their unreality operations successful nan latest afloat quarter, and Larry Ellison is evidently emotion a small dizzy, telling nan world – aliases anyone who would perceive – that Big Red's unreality ne'er fails.

Founder and CTO of nan Texas-based business, Ellison bottles nan Koolaid he asks labor to drink, but past nighttime connected a convention telephone to talk earning for Q2 ended 30 November, he appeared to person a bellyful himself.

"Our unreality is very unafraid and highly reliable," he told financial analysts. "It doesn't spell down."

That's not strictly true. Britain's heatwave successful nan summertime saw servers hosted by some Google and Oracle driblet offline successful July, albeit connected nan backmost of grounds breaking temperatures, wherever nan mercury reached 40.3˚C (104.5˚F) successful eastbound England.

Ellison was trying to explicate why Tokyo Stock Exchange was among nan customers to person chosen Oracle's unreality infrastructure successful nan past quarter, arsenic did FedEx, Deutsche Bank, and Vodafone arsenic well.

"In fact, my favourite quote from a large telephone institution successful nan US was nan quality betwixt Oracle's unreality and nan different clouds are simply that Oracle unreality doesn't spell down. I deliberation that's a very important rumor erstwhile you person endeavor applications for illustration a banal speech wherever you can't ever spell down. If you're a telephone company, nan telephone strategy can't spell down."

For nan quarter, Oracle reported full gross of $12.275 billion, up 18 percent year-on-year, contempt nan spot of nan US dollar. Within this, Cloud Infrastructure was up 53 percent to $1 cardinal – good disconnected nan gait pinch AWS and Microsoft.

Ellison said his business had signed infrastructure contracts pinch "multiple customers exceeding $1 billion… that's ben added to our backlog," he said. "We now person 22,000 infrastructure customers, we person a full of 55 regions, nationalist regions arsenic good arsenic nationalist information and different types regions. That's much than AWS aliases Microsoft aliases anybody, which whitethorn astonishment immoderate people."

For context, AWS reported $20.5 cardinal successful income during its astir caller afloat 4th ended September 30, and Microsoft's Intelligent Cloud brought successful $20.3 billion.

Unperturbed, he continued to talk nan determination by Nvidia to move AI/ML workloads to Oracle's unreality successful his ain inimitable way, "because it turns retired we're really bully astatine that, we're amended than immoderate of nan different clouds, which whitethorn astonishment immoderate people."

It almost seemed to astonishment Larry himself.

If location was a taxable to nan Q2 numbers, it is that Oracle wants investors to cognize really successful it is successful nan cloud, and really nicely Oracle is playing pinch others pursuing nan necktie up pinch Microsoft earlier this year.

"We deliberation nan early of unreality is not four-walled gardens, AWS, Microsoft, Google and Oracle. We deliberation those clouds are each going to interconnect. And past customers will prime nan astir due work for their peculiar needs and operation and lucifer betwixt nan clouds."

After dedicating a large chunk of his reside to Oracle's infrastructure clouds, he seemed to retrieve that nan institution really had a wider portfolio.

"In applications – I'll effort to do this quickly – we're conscionable winning successful nan backmost office. We person 22,000 customers successful infrastructure and nan cloud. We person 11,000 Fusion ERP and HCM customers unsocial successful applications, conscionable Fusion customers. We person 11,000 now. We person astir apt adjacent to 30,000 NetSuite customers connected apical of that. So, we person a batch of customers and applications. We’ve been successful nan applications unreality business for longer than we’ve been successful nan infrastructure unreality business."

How did Oracle do elsewhere? Cloud services and licence support was up 14 percent to $8.598 billion; package licence and on-premises licence grew 16 percent to $1.435 billion, hardware was up 11 percent to $850 million, and services jumped 83 percent to $1.392 billion.

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Broken down by merchandise much specifically, full unreality gross was up 43 percent to $3.8 billion, including nan $1 cardinal publication from infrastructure and $2.8 cardinal from unreality applications, itself up 40 percent. Fusion Cloud jumped 23 percent to $600 million. NetSuite Cloud was up 25 percent to $600 million. And Cerner contributed $1.5 billion.

Oracle reported an operating profit of a small much than $3 cardinal versus an operating nonaccomplishment of $824 cardinal a twelvemonth earlier aft results were adversely impacted by nan costs of a judgement related to a decade-old conflict surrounding erstwhile CEO Mark Hurd's employment.

So Oracle is intelligibly making immoderate headway successful nan cloud, but is still leaps and bounds down its biggest infrastructure rivals, which is possibly why Ellison feels nan request to overcompensate by saying silly things. ®