Oracle hardware sales plummet

Jennifer Scott News
21 Dec, 2011

As Larry Ellison’s company starts looking to the cloud, its hardware product sales get left behind.

Oracle today posted quarterly earnings showing a sharp drop in hardware sales and only minimal rises in revenue.

The company, headed by Larry Ellison, reported a 14 per cent fall for hardware, making it three consecutive year-on-year failings for the division, and total revenue climbed ever so gently by two per cent.

However, when the revenue figure is $8.8 billion (£5.6 billion), Oracle may not be listening to the fat lady sing quite yet.

“We have expanded our worldwide sales capacity by adding over 1,700 sales professionals in the first half of this fiscal year,” said Mark Hurd, president at Oracle.

The ex-HP chief executive (CEO) went on to celebrate Oracle’s core products – software – and put his faith in the company’s cloud computing push to build it back up again.

“We believe [the] increase in our field organisation, combined with innovative new products like Fusion Cloud ERP and Cloud CRM, will enable solid organic growth in the second half of this year,” added Hurd.

Oracle entered the hardware market with the controversial acquisition of Sun Microsystems back in 2009. Many believed the company was only buying up the firm, known for its hardware products, to get its hands on Java. However, Ellison and Co. continued to protest the importance of the boxes, as well as the language.

Yet, even with its hardware cheerleading, the legacy company decided to move with the times and get into the cloud game earlier this year. In October, Oracle made the surprise move of announcing its own public cloud, offering its Fusion enterprise applications to rival the likes of Salesforce.

It is unlikely to have made any impact on this quarter, but we are looking forward to seeing its next batch of results and how the cloud has affected its revenues – up or down?

Sign up for our free newsletter