Oracle's Q3 2014: Cloud Software and Engineered Systems Revenues Show Rapid Growth

Oracle announced that fiscal 2014 Q3 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.

In constant currency, Oracle’s Cloud Software subscriptions revenues grew 25% and its Engineered Systems revenue grew more than 30% in the quarter, said Oracle president and CFO Safra Catz in a statement released by the company. "Oracle Cloud Applications and Engineered Systems are both rapidly growing, billion dollar run-rate businesses. Those two high-growth businesses helped us deliver record year-to-date operating cash flow, and a record $15 billion of operating cash flow over the past twelve months."

The growth in Oracle's Engineered Server Systems, including Exadata and SPARC SuperClusters, was achieved “while throughout the industry traditional high-end server product lines are in steep decline," said Oracle CEO, Larry Ellison in his statement. "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."

According to Oracle president Mark Hurd, Oracle’s quarterly Cloud Application revenue is now approaching $300 million. He added that all of Oracle’s strategic Cloud Application Suites, including Fusion Enterprise Resource Planning, Fusion Human Capital Management and Fusion Customer Experience, posted triple-digit revenue growth.

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