Oracle CFO Says Cloud Computing Will Lift Profit Margins
September 28, 2013
Grazed from Bloomberg. Author: Aaron Ricadela.
Oracle Corp., the world’s largest database-software maker, will boost operating margins by shifting to services delivered via the Web from software installed on computers, Chief Financial Officer Safra Catz said.
Oracle will be more profitable as technology spending is directed toward cloud-computing tools, Catz, who is also co-president, said at a meeting with analysts in San Francisco yesterday. Analysts project on average that Oracle will reach an operating margin of 48 percent for the fiscal year through May, compared with 39 percent in the previous year …
After spending more than $50 billion on acquisitions in the past decade, fueling an expansion in sales and earnings, Oracle is seeking new sources of growth. The software maker is grappling with Salesforce.com Inc. (CRM), Workday Inc. (WDAY) and other competitors delivering software via the Internet, leading Oracle to buy and develop its own cloud-computing products…
Read more from the source @ http://www.bloomberg.com/news/2013-09-26/oracle-says-it-will-gain-share-regardless-of-economy.html