Feeds

Oracle beats up on BEA

Pinch Punch

Top three mobile application threats

Larry Ellison cited middleware rival BEA Systems to Wall Street as proof that Oracle can and will prevail over SAP in business applications and oRed Hat in Linux.

Claiming 82 per cent middleware licensing growth during his company's recent third quarter, the Oracle CEO claimed his compay grew up to 10 times faster than BEA during that company's recent fourth quarter.

Emceeing the Smackdown that has become Oracle's quarterly conference call with investors, Ellison noted BEA's annual revenue is barely larger than Oracle's net income for a single quarter. Obviously, Oracle is considerably older, much larger and has the advantage of wrapping in applications and databases with its middleware. But BEA built a quick market share lead over Oracle in the late 1990s and early 2000s in middleware using WebLogic, while Oracle focused its attention on databases and applications. Since then Oracle has clawed back some of the lead.

"It took us five years to catch and pass BEA [in middleware], but we did it, through acquisition and innovation," Ellison said.

Ellison next turned to Linux support. Oracle has experienced a backlash since announcing Unbreakable Linux Network (ULN) in October. Some investment analysts believe ULN "must" be failing since Oracle has not announced a single major customer in the service's first five months.

Claiming Linux contracts of $500m-plus and a Yahoo! support deal that displaced Red Hat, Ellison promised: "We are in the early days of our Linux support business, but we are off to a very solid start. This is just the beginning... we are not going to build the Linux business over night, but we will build it."

Then it was back to an older adversary as Oracle beat up on SAP. Ellison claimed 57 per cent new licensing growth in applications - a number inflated by $20bn of M&A - versus seven per cent for SAP's recent quarter. Oracle may be number two behind SAP in ERP, but ERP is growing slowly while SAP is trying to penetrate the small and medium space with "lots and lots of different ERP systems." "Our strategy is to have one suite that will be available on demand, for SMBs and big companies," Ellison claimed.

The final flick of the finger? A migration from a creaking SAP R/2 installation to Oracle by a customer in SAP's home town of Waldorf, Germany " We are gaining on them [SAP] consistently and rapidly," Ellison said.

Who needs financials with all this color? But, alas, this is Wall Street, and to the spreadsheets we must: Oracle reported a 35 per cent jump in net income for the three months to February 28 to $1.03bn, on total revenue that increased 27 per cent to $4.4bn, and earnings per diluted share of $0.20, up from $0.14. Total software revenue grew 25 per cent to $3.4bn while business from new licensing increased 27 per cent to $1.3bn.

Middleware, customer relationship management (CRM) and vertical-sector applications are Oracle's fastest growing businesses, with the database transitioning to more of a maintenance business, according to Ellison. He committed Oracle to selling more vertical-sector products to existing users of Oracle ERP and promised continued acquisitions in new markets. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.