Oracle’s DBaaS Cloud Revenues Rose 62%, Drove Database Segment

Oracle’s DBaaS performance

Earlier in this series, we discussed the fiscal 4Q17 performance of Oracle’s (ORCL) Hardware segment. Despite a consistent decline in its Hardware segment and stiff competition posed by Microsoft (MSFT) and Amazon (AMZN) in database space, Oracle retains its position as the undisputed leader of this space. Oracle’s focus and growth in DBaaS[1. database-as-a-service] could help the company retain its position in the database space.

Oracle noted that its DBaaS cloud revenues grew 62%, which was responsible for driving growth in its Database business. The company’s database business, including DBaaS and on-premise licenses and support, grew 8%.
Oracle’s DBaaS Cloud Revenues Rose 62%, Drove Database Segment

Explaining the company’s customers’ requirements and how DBaaS fulfills them, Andy Mendelsohn, Oracle executive VP for database server technologies, noted, “One of the reasons they want to do database as a service on premise is to give business units the same agility they can get in the cloud.”

Factors contributing to DBaaS growth

Customers seem to increasingly prefer DBaaS, as it leads to cost savings in capex as well as operating expenses. Factors that contribute to the increased adoption of overall cloud database and DBaaS include increased migration of data to the cloud, flexibility, agility, seamless integration, and upgrades. This is a new but growing segment in the overall cloud space.

CIO reported that cloud databases and the DBaaS market are expected to grow from the current level of $1 billion to $14 billion by 2019. The chart above shows the expected growth in this space.