Cloud-based software is becoming more popular with Oracle (ORCL). In October 2011, Oracle launched “Oracle Public Cloud” in order to make its database, middleware, and other applications available to customers on a subscription-based model. Oracle is expected to be a major player in this segment. Its acquisitions in this sector include Datalogix and MICROS systems. The acquisitions will help expand its market share.
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In October 2011, Oracle introduced Fusion Apps—a comprehensive package of ERP (enterprise resource planning) and CRM (customer relationship management) applications. It offers “resource planning, customer relationship management, human capital management, supply chain management, project planning and financial software to enterprise customers.” This ensures that the firm will expand its market share in a segment where it competes with heavyweights like SAP and Microsoft (MSFT).
Engineered systems like Exadata and Exalogic are high performance machines that offer a complete package of storage, networking, servers, and software to customers. They’re part of the $8 billion integrated systems market. Oracle is a market leader in this segment. It has a 55% market share. Oracle expects its products to continue to drive its revenue and growth.
SaaS (software-as-a-Service) applications, like ERP and CRM, require servers as well as storage hardware. Exadata servers are machines that provide infrastructure for SaaS players to host applications.
Oracle’s fiscal 4Q15 revenue from SaaS and PaaS (platform-as-a-service) rose 29% to $416 million. The growth in the SaaS and PaaS units was supported by strong growth in cloud infrastructure, or IaaS (infrastructure-as-a-service), revenue. IaaS rose 25% to $160 million. The engineered systems and SaaS segment are complimentary to Oracle’s revenue.