Cloud computing competition fogs Oracle quarterly

Washington (dpa) – Silicon Valley technology giant Oracle announced fiscal third-quarter profits Wednesday of 2.5 billion dollars, or 52 cents a share, compared with 2.5 billion dollars, or 49 cents, a year earlier.

Revenue was down 1 per cent to 8.97 billion dollars in the quarter, which ended in February.

The company is being stymied by corporate customers’ switching to Internet-based cloud systems, making them less reliant on Oracle’s servers, databases and related products.

New software licenses and cloud software subscription revenues – closely watched indicators of future revenue – were down 1.8 per cent, but software license updates and product support revenues were up 7 per cent, the company said.

Hardware revenue – including servers and storage gained in the acquisition of Sun Microsystems – declined 23 per cent to 671 million dollars.