Due to a change in business model, Oracle sales in Europe are down 22%

    Following the results of the completed quarter, Oracle 's revenue and profits decreased . This is partly due to the appreciation of the US dollar.

    Also, according to representatives of Oracle, the income of the corporation was negatively affected by an increase in the share of their cloud products. However, they consciously took this step and are sympathetic to its consequences.

    According to Larry Ellison, chairman of the board of directors of Oracle, over time, corporate revenue from deliveries of cloud services will triple the revenue from software sales to the same customers.

    In Europe, total corporation sales were down 22% from a year ago. Quarterly sales of traditional software adjusted for currency fluctuations were down 10%. Total revenue decreased 5% to $ 10.7 billion.

    Adjusted earnings fell 14% to 78 cents per share. Although, according to analysts, it should not have fallen below 87 cents. If it were not for the growth of the dollar, the corporation’s income would increase by 3%, and profits would not decrease by more than 5%, according to Oracle. Against the background of quarterly results, Oracle shares fell 7%.

    However, there was an increase in sales in the cloud products segment.

    “The negative reaction of Wall Street testifies to a healthy skepticism of the market towards a new, cloud-based business model. The corporation took a bold step, but we have already seen on the example of other companies like Microsoft and Adobe that it pays off, ” Bill Craer, an analyst with Edward Jones software market , told the Financial Times .

    Quarterly revenues from SaaS and PaaS schemes increased by 29% and reached $ 461 million. Although Oracle was counting on $ 300 million. The company's experts predict that sales of its cloud products will grow by 60% in the new fiscal year, which began for Oracle in June.

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