Menu
Oracle’s ‘Bring Your Own Licence’ play begins to pay off

Oracle’s ‘Bring Your Own Licence’ play begins to pay off

Latest quarterly financials highlight growth

Larry Ellison - founder and chairman, Oracle

Larry Ellison - founder and chairman, Oracle

In September, Oracle unveiled its new ‘Bring Your Own Licence to PaaS’ cloud program, and the new offering is already paying off for the vendor, according to the latest financials.

Oracle held its second quarter earnings call on 14 December, with the company revealing a six per cent year-on-year rise in total revenues for the period, to US$9.6 billion.

The vendor also reported 55 per cent year-to-year growth in cloud software-as-a-service (SaaS) revenues, to US$1.1 billion, and a nine per cent annual increase in cloud and on-premises software revenues for the period, to US$7.8 billion.

According to Technology Business Research analyst, Meaghan McGrath, Oracle’s licence and maintenance ‘on premises’ revenues for the quarter saw accelerated growth as customers begin to view the 'Bring Your Own Licence' (BYOL) offering as a cost-effective means to leverage licence investments as they transition to cloud.

“Oracle expects this improvement in licence and maintenance on the platform and infrastructure side to improve notably as the autonomous database becomes available and customers purchase supporting technologies around database licenses and host them on Oracle’s Cloud Infrastructure,” McGrath said.

The idea behind Oracle’s ‘Bring Your Own Licence’ approach is to give customers with existing on-premises licences the ability to leverage their existing investment to use Oracle platform-as-a-service (PaaS) at a fraction of the old PaaS price. In doing so, customers have the potential to reduce their management and operational costs.

The tech giant already allowed customers to bring their on-premises licenses to its infrastructure-as-a-service (IaaS), and the new offering was viewed as another step in bringing them into cloud environments, while addressing the cloud adoption challenges they face with their on-premises software investments.

"We are completely transforming the way all companies buy and use cloud by providing flexibility and choice," Oracle executive chairman of the board and CTO, Larry Ellison, said in September.

"Today, we combined the lowest prices with the highest performance and more automation to deliver a lower total cost of ownership for our customers,” he said.

During the earnings call on 14 December, according to McGrath, Oracle executives continued to emphasise the opportunity that the platform and infrastructure segment – both traditional and cloud – present for the business.

“Cloud PaaS and IaaS revenue struggled to deliver year-to-year growth, as Oracle’s now de-emphasised hosting business declines in the wake of new cloud focus,” McGrath said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudOraclelarry ellisonpaas

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments