Wednesday, June 24, 2009

Oracle Operating Margin Tops 50%, Maintenance Bigger than License

Oracle reported its fourth quarter yesterday with several interesting highlights:
  • Non-GAAP operating margin was 51%, the highest in Oracle history
  • Fees for updates and support (aka, maintenance) were $3.1B, growing at 8%
  • Fees for license were $2.7B, decreasing at 13%
  • Oracle "beat expectations" despite both revenue and profit falling
  • Oracle headcount remains flat at about 85,500 people (roughly the size of Nashua, NH)
I would dare say that all this continues to validate my Oracle has become Computer Associates (without anybody noticing) hypothesis.

See this Mercury News story for more.

2 comments:

cleo said...

interesting, I was thinking that Sun has become the new CA... to me they are the company that makes less and less sense and seems to have "random potpourri" as a business model. What are your thoughts on them?

Dave Kellogg said...

I don't see many Sun / CA parallels but I see plenty of Oracle ones (see the hyperlink in the post, not sure how to put them in comments).

As for Sun I've also blogged on them several times over the years. My general impression is similar to yours: lost, grasping at straws, lacking a clear positioning.