Oracle SaaS grows big, but analyst says not much of it is really new

Grazed from TechTarget. Author: Mark Fontecchio.

Oracle announced that it added more than 500 new Software as a Service (SaaS) customers in the last quarter, though an analyst thinks most of them are existing Oracle customers and those gained in acquisitions. The Redwood Shores, Calif.-based IT company reported quarterly earnings on Thursday, announcing that total revenue was up 2% since the same quarter last year, and software revenues were up 5% year-over-year.

However, most of Oracle’s growth is its "existing client base and acquisitions (more) than net new standalone sales," according to Chad Eschinger, research vice president at Stamford, Conn.-based Gartner Inc. That said, Eschinger added that Oracle continues "to be a strong provider with a growing presence in SaaS."…

There has been much talk that a large portion of Oracle’s cloud business has come from acquisitions, particularly Taleo. Oracle CEO Larry Ellison sought to discount those rumors during the quarterly earnings call. "We added more new Fusion core HCM customers last quarter than Workday added HCM and CRM customers," he said. "That’s just Fusion, not Taleo."…

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