Oracle’s cloud offerings
Previously, we discussed what factors could boost the US dollar (UUP), which has a significant bearing on Oracle’s (ORCL) top line. Let’s now look at how Oracle’s cloud offerings performed in fiscal Q4 2018. During the quarter, Oracle’s cloud services and license support revenue grew 8% to $6.8 billion, contributing 60% of the company’s overall revenue. Cloud license and on-premises license revenue fell 5% to $2.5 billion.
Oracle clarified that, based on its prior reporting structure, its total cloud revenue was $1.7 billion in fiscal Q4 2018, which represents sequential growth of 9% and 25% YoY (year-over-year) growth. Oracle expected its cloud offerings to grow 19%–23% during the quarter.
Cloud revenue now included in cloud service and licensing support segment
Under the company’s new reporting structure, Oracle’s cloud revenue is now included in its cloud service and licensing support segment. In fiscal 2018, Oracle’s cloud and license revenue grew 7.4% to ~$32.4 billion. Oracle said it had cloud revenue of $1.7 billion in fiscal Q4 2018. However, unlike past quarters, Oracle did not specify how much SaaS[1.saoftware-as-a-service], PaaS[2.platform-as-a-service], and IaaS[3.infrastructure-as-a-service] revenue contributed. Oracle’s cloud revenue made up ~16% of the company’s total revenue in fiscal 2018, compared with 8% two years prior.
Unlike Oracle, which opted not to spell out its cloud revenue, peers Microsoft (MSFT) and Amazon (AMZN) reporting their offerings’ numbers and growth rates. In fiscal Q3 2018, Microsoft’s Azure revenue grew 93%, and Amazon’s AWS[4.Amazon Web Services] revenue grew 49% to $5.4 billion.