On Monday, the Orcale Corp forecasted the current quarters profit which were above the estimates, a result of the growth in its license support and cloud services unit.
The growth helped the business software maker in surpassing the expectations of the Wall Street for the second quarter.
There is a raise in shares of 5 percent as the company is saying that if the fluctuations in the exchange rates are excluded then the third quarters adjusted profit is expected to be in the range of 86 cents to some 88 cents each share.
According to IBES data analysts expect an average of 84 cents per share.
The cloud services and license support unit’s revenue rose by some 2.7 percent and is now 6.64 billion dollars, clearly beating the analysts’ estimate.
More companies shift from the old and traditional on-premise database model to the new cloud computing so as to cut costs.
In June Oracle created a brand new revenue reporting structure because of which they were able to merge their cloud and software license business.
According to the analysts the merger gives only a little insight about the stand alone performance of their cloud unit.
Oracle can be termed as a late beginner in the already rapidly growing business of cloud-based software. However it is already striving tirelessly with aggressively stepped up efforts to catch up with its rivals which includes Microsoft Corp, Salesforce.com Inc. and Workday Inc.
Workday reported last month, that its cloud subscription revenue had received a rise of 35 percenr while Sales Cloud a product of Salesforce flagship grew by some 11 percent.
Oracle according to Morgan is still dragging behind the other old line enterprise software players.
The total revenue was summed up to $9.56 billion which brushed past $9.52 billion, which was the analyst expectation.
Source: Reuters, Finance Yahoo
