Engineered Systems Now Nearly One-Third of Oracle’s Hardware Product Sales

Oracle Engineered Server Systems achieved rapid growth during the third quarter of Oracle’s fiscal year 2014. Oracle president and CFO Safra Catz, Oracle CEO Larry Ellison, and Oracle president Mark Hurd each commented on the performance during the company’s earnings call.

In constant currency, Engineered Systems revenue grew more than 30% in the quarter, said Catz in her prepared remarks. “Engineered Systems now account for nearly a third of all hardware product sales,” said Catz.

“Our Engineered Systems business is growing rapidly for the same fundamental reason that our cloud applications business is growing rapidly. In both cases, customers want us to integrate the hardware and software, and make it work together, so they don’t have to,” noted Ellison.

“As customers shift from pre-integrated hardware and cloud computing in search of lower costs and more rapid implementation, Oracle is presented with new opportunities for leadership in a number of market categories,” Ellison added. “Five years ago, we delivered our first Exadata Machine. In the next few months, we will deliver our ten-thousandth Engineered System.”

Also commenting on the third quarter performance of Engineered Systems in his remarks, Hurd stated that, “In hardware 10% overall growth, we grew in every single region. We’re growing while our competitors are declining. We are taking share and creating a new category in high-end computing Engineered Systems.”

Hurd added that “All major Engineered Systems products grew double digits. SPARC SuperCluster saw triple digit growth again this quarter. Both the T-Server and NAS Storage saw good growth and, combined with Engineered Systems, these products now make up nearly two-thirds of all product revenue and grow roughly 20%.

For the fiscal 2014 Q3, Oracle announced total revenues were up 4% to $9.3 billion. New software licenses and cloud software subscriptions revenues were up 4% to $2.4 billion. Software license updates and product support revenues were up 5% to $4.6 billion. Hardware systems products revenues were up 8% to $725 million.

A replay of the earnings call is available from Oracle here, and transcripts are available from  and