Oracle FY 3Q16 Earnings Call Notes

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Oracle’s (ORCL) CEOs Safra Catz and Mark Hurd on Q3 2016 Results

Safra Catz

SaaS and PaaS revenue 585m

“I’m going to start with our SaaS and PaaS business, where we continue to see excellent momentum. Bookings grew 77% this quarter and that’s on top of the 129%, we reported last year. SaaS and PaaS revenue was $585 million, up 60% from last year.”

Move to cloud is generational shift in technology

“the move to cloud is a generational shift in technology that is the biggest and most important opportunity in our company’s history. We embarked on this transformation over 10 years ago, when we began rewriting all of our software to enable our customers to leverage our solutions as cloud solution. ”

In the move to the cloud they pay for the software and the hardware as a service

“You should think about it as if our customers move to the cloud, that means that they not only of course pay us for the software, but we also offer them a service where we own the hardware and we manage, and we do all the labor, and so even though they end up paying us more than they would have historically, just for a support license, a support fee, but they themselves are customers end up spending a lot left, in total because of the massive economies of scale we have in running the Oracle database for them. That they would not have on their own.”

Larry Ellison

Oracle now selling more SaaS and PaaS than Salesforce

“Oracle is now selling more new SaaS and PaaS annually recurring cloud revenue than any other company in the world including We are growing much faster than more than twice as fast. Because we sell into a lot more SaaS and PaaS market than they do. We compete directly with in every segment of the SaaS customer experience market including sales, service and market.”

Ken Bond

People want Oracle in the cloud because they already have a large investment in Oracle products

“people want Oracle in the cloud. People have a huge investment in Oracle products. I mean, people are coming after us, because we are by far the market leader in database. If you’re in the database business, the only when you can come after is us. So, of course, Amazon, they’re going to be in the database business too is coming after us, and of course Microsoft wants to be bigger in the database business, they have to come after us. We’re the biggest player. We see our customers, literally millions of applications and millions of users of those applications built on top of the Oracle database, wanting to move those applications into the cloud and we do that very well.”

If you want to move to another company’s database you have to rewrite the application, which gives us an advantage

“Let me add one more thing which is a lot of people over the years have come after us in database. The problem is if you want to move to SAP HANA, you have to rewrite your application. If you want to move to Amazon database, and they have a couple, you have to rewrite your application. That is just a huge barrier for our customers. Our customers want to run their existing applications faster and more securely in the cloud. They want to make an easy transition. We’re very comfortable we get depend our leading position in the database market.”