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Strong performances in software and consulting helped IBM’s profit and revenue increase in the first quarter, even as a post-pandemic slowdown hit much of the technology industry.

IBM’s software and consulting revenue both rose 3% year over year. In the software segment, IBM’s enterprise Linux unit, Red Hat, saw growth of 8%, while application operations saw the highest level of growth in the consulting segment, rising by 7%.

The strong showing from software and consulting help boost total profit by a healthy 26%, to $927 million, and revenue by .4%, to $14.3 billion, for the quarter ending March 31, according to IBM’s earnings report, issued late Thursday. The strong dollar had a negative effect on sales — in terms of constant currency, taking out the effect of currency fluctuations, IBM revenue rose by 4%.

IBM now receives about three-quarters of its annual revenue from tech services, but the company is seeing some deceleration in consulting from the previous robust growth levels, chairman and CEO Arvind Krishna said on a call with analysts after the results had been published.

“More recently, clients are prioritizing digital transformation projects that focus on cost takeout, productivity and quick returns,” he said.

This trend was further reflected in IBM’s infrastructure segment, which was down 3.7% year on year; within the Hybrid Infrastructure business, z Systems revenue was up 7%. This was driven by fourth quarter z16 availability, with its performance having outpaced prior cycles due to customers leveraging it for AI at scale and energy efficiency, Krishna told analysts.

Focus on artificial intelligence

Commenting on IBM’s ongoing focus, Krishna said that hybrid cloud and artificial intelligence would be a priority for driving both business outcomes and innovation this year.

He noted that while AI is projected to add $16 trillion to the global economy by 2030, its use case within the enterprise differs widely from the AI being offered to consumers, given its need for more accurate results, trusted data and governance tools.

“We are seeing a lot more interest from business and using AI to boost productivity and reduce costs,“ Krishna said. “Productivity gains will come from enterprises turning their workflows into simpler automated processes with AI.”

Krishna said IBM will be focused on using AI to help organizations enhance internal audit and compliance processes and automate call center responses to improve accuracy and customer satisfaction.

GlobalFoundries lawsuit

On the same day IBM posted its first quarter 2023 financial results, chip manufacturer GlobalFoundries announced it was launching a lawsuit against the company, accusing it of unlawfully sharing confidential intellectual property and trade secrets with Japanese chip maker Rapidus.

IBM announced in 2021 that it had developed a 2nm chip, and then late last year unveiled a partnership with Rapidus calling for commercial production of 2nm chips, with manufacturing done in Japan. Chips made with the 2nm manufacturing process will be used for a wide range of applications and machines, from laptops to high performance computing servers, and are expected to slash the carbon footprint of data centers due to optimized performance.

The GlobalFoundries complaint asserts that IBM unlawfully disclosed its confidential IP and trade secrets after IBM sold its microelectronics business in 2015.

The company also alleges that IBM has been undertaking “unlawful recruitment efforts” by poaching GlobalFoundries engineering staff, a practice that it alleges has accelerated since the Rapidus partnership was announced in December 2022.

GlobalFoundries has asked the court to order an end to those recruitment efforts and is seeking compensatory and punitive damages as well as an injunction against IBM to stop the “unlawful disclosure and use” of GlobalFoundries’ trade secrets.

IBM has denied the allegations, contained in a complaint to federal court in the Southern District of New York in which GlobalFoundries asks for compensatory and punitive damages as well as an injunction against IBM to prevent further disclosure and use of what GlobalFoundries considers its trade secrets.

Enterprise Applications, IT Consulting Services, Technology Industry

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Oracle on Thursday reported third quarter total revenue of $12.4 billion, up 18% year-on-year, boosted by the demand for AI workloads in Oracle Cloud Infrastructure (OCI) and Cerner’s contribution to the topline.

“So, we have a lot of business, a lot of new AI companies coming to Oracle because we’re the only ones who can run their workloads. And by the way — and we are cheaper. But so we’re faster and we’re cheaper,” Oracle Chairman Larry Ellison said during an earnings call with analysts.

Top Oracle executives claim that the second generation of OCI has a superior architecture and network capability that enables it to run AI workloads faster.

Oracle’s Gen 2 Cloud, according to Ellison, is different from other products on offer from rival hyperscalers as it uses a non-blocking Remote Direct Access Memory (RDMA) network that allows two networked computers to share information without using any processing power.

“What this means is if you’re running a large group of Nvidia GPUs in a cluster doing a large AI problem at Oracle, we can build these AI clusters dynamically. Our standard network supports the large clustering of GPUs and allows them to communicate very quickly. So, we can create these groups of GPUs. We can marshal them together. The other guys can’t do that,” Ellison said during the earnings call, according to a transcript from The Motley Fool.

In contrast, other infrastructure-as-a-service (IaaS) platforms on offer from other hyperscalers, according to Ellison, are physically building new hardware to be able to support such a similar AI cluster.

Last year in October, Oracle and Nvidia extended their partnership to help speed customer adoption of artificial intelligence (AI) services.  

Continued double-digit growth across services

In line with the last sequential quarter, Oracle continued to see double-digit growth across its cloud services, Fusion applications, and Cerner.

For the third quarter, the company reported total cloud revenue (IaaS and SaaS combined) of $4.1 billion, up 45% year-on-year. Its cloud infrastructure (IaaS) revenue grew 55% to $1.2 billion while cloud application (SaaS) revenue increased 42% to $2.9 billion.

Revenue for Fusion Cloud ERP rose 25% to $0.7 billion, while the company’s NetSuite division’s revenue grew 23% to $0.7 billion.

Although Cerner’s contribution provided a boost to the company’s total revenue, it reported a revenue of $1.5 billion — the same number it had reported in the last sequential quarter.

Slump in profits

Despite seeing an increase in revenue, the company’s profit declined 18% year-on-year due to rising operating expenses.

Oracle reported a net income of $1.89 billion for the third quarter compared with $2.31 billion for the corresponding period last year.

Operating expenses for the company rose to $9.13 billion for the quarter ended February, compared with $6.69 billion for the same period last year.

AI workloads will be the next growth driver

Chairman Larry Ellison and CEO Safra Catz both believe that the next spurt of growth for the company will come from AI-based workloads as the world embraces generative models such as ChatGPT.

“There’s actually more demand for AI processing than there is available capacity,” Ellison said during the earnings call when asked about opportunities in generative AI.

Oracle, according to Ellison, is all set to grab the AI workload opportunity and plans to increase capacity to meet growing demand.

Artificial Intelligence, Oracle

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SAP’s revenue rose 11% in 2022 with the cloud component of that climbing 33%, but net income dropped 68%, prompting restructuring and layoffs in its CRM activities.

The company is also exploring selling its majority stake in Qualtrics, the experience management platform it bought for $8 billion in 2018, to refocus on its core business.

SAP already sold a minority stake in Qualtrics in an IPO in early 2021 and CEO Christian Klein (pictured) said he expected to continue to partner with Qualtrics going forward, but the sale would allow SAP to reinvest in other areas of its business.

The layoffs — affecting around 2,800 staff, or 2.5% of SAP’s global workforce — are part of “a targeted restructuring,” Klein said. “It’s not performance-based.”

That’s in contrast to companies such as Google or Salesforce, which have announced across-the-board layoffs based on performance review criteria to reverse over-hiring during the pandemic period.

“We definitely didn’t over-hire,” Klein said, noting that revenue grew faster than SAP employee growth in 2022.”

SAP’s overall revenue for 2022 totaled €30.9 billion (US$33 billion as of Dec. 31, 2022), up 11% year on year. Growth in Q4 was slower, however, up 6% to €8.4 billion.

With the restructuring, SAP seems set to abandon the idea of delivering CRM as a stand-alone product, focusing instead on investing in tightly integrated industry-specific solutions in markets where it has a strong foothold with its core ERP products. The layoffs — the first the company has announced since 2019 — will be slower to take effect than at Microsoft or Oracle since a greater proportion of SAP’s staff are in Europe, where legislation to protect workers means hiring and firing takes longer.

Up in the cloud

Cloud revenue for the year rose sharply, up 33% to €12.6 billion, and now accounts for 40% of all revenue. €2.1 billion of that is from S/4HANA, up 91% year on year.

“SAP is now a true cloud company,” Klein said, adding that the company already has a backlog of €12 billion in contractually committed cloud revenue it expects to recognize in 2023, and a total cloud backlog of €34 billion including commitments for future years.

Net income for 2022, though, fell 68% to €1.7 billion, with the decline accelerating in Q4 to 77% year on year.

Klein attributed some €410 million of that decline to SAP’s decision to wind down its business in Russia and Belarus following Russia’s invasion of Ukraine.

Inflation was another factor affecting profit, he said. Although SAP increased prices by around 3% mid-year, this wasn’t enough to offset the increased costs the company faced, he said.

For the year ahead, SAP forecast cloud revenue will continue to grow at between 22 and 25% at constant currencies, with a longer-term ambition of passing €22 billion in cloud revenue and €36 billion in total revenue by 2025.

SAP also sees its share of more predictable revenue (cloud and software support revenue as a percentage of total revenue) rising from 79% in 2022 to 83% in 2023, and 85% by 2025, Klein said.

No extension for ECC

One thing that definitely won’t grow in 2023 is how much time users of SAP’s legacy ECC 6.0 and Business Suite 7 ERP applications have left to migrate to something more modern.

SAP announced in 2020 it will only provide mainstream maintenance for its legacy software until the end of 2027, with extended maintenance available for an additional fee until the end of 2030.

“We will not extend [the deadline],” Klein said. “Customers are asking us to put a lot of R&D dollars into new innovations […] and for us it is very important we convince our customers to move with us, with value and good business cases.”

Although the company is now focused on the cloud with the new generation of its core ERP application, S/4HANA, customers can choose where they run it. “SAP is the only software vendor in the ERP space that still gives a commitment for on-premises until 2040. That also costs us money,” Klein said.

An eye on AI

SAP will continue to invest in developing artificial intelligence (AI) as part of its products, Klein said, including in areas such as predictive maintenance.

It’s also experimenting with the new wave of generative AI tools such as OpenAI’s ChatGPT to see how they can augment its operations internally.

Other companies are considering using ChatGPT for tasks including coding, with the AI taking on one of the roles in a pair-programming team, report writing, or targeted marketing.

Klein is wary of giving ChatGPT too much freedom, but sees potential for it in automating responses to common support requests or in translating documentation and user interfaces. “I don’t believe such technology can code a new logistics app by itself,” he said. On the other hand: “We get millions of tickets about how-to questions, and we are definitely going to see that AI is able to automate a lot and drive efficiency,” he added. SAP translates its software into over 100 languages, and is looking at using AI to accelerate the translation process, he said.

Artificial Intelligence, Cloud Computing, SAP, Staff Management

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An organization depends on its financial institution to complete a major transaction, but a glitch holds up funds, negatively impacting cash flow. Meanwhile, regulators fined a different financial institution for failing to catch fraudulent transactions.

In both situations, better business transaction monitoring could have helped prevent negative, costly outcomes. In the former, more seamless monitoring would have ensured the bank client’s transaction was completed faster, maintaining and even boosting customer satisfaction. For the latter, it could have prevented regulatory fines.

Today, especially, as modern applications and systems have become more complicated and IT infrastructure more complex, seamless business transaction monitoring is crucial. Enterprises need the proper tools to detect incidents early, automate wherever they can to make processes more efficient and free up IT workers for more complicated tasks, and be able to automatically solve any issues quickly.

“Business transaction monitoring is transitioning from a support function to a critical element in any organization’s operations,” says Digitate CEO Akhilesh Tripathi.

French utility company ENGIE, for one, needed a solution that could monitor its workload automation processes across its extensive IT infrastructure and business applications, and reduce dependency on manual issue resolution.

One of the world’s largest independent power producers, ENGIE conducts some two-million meter readings and generates over 150,000 invoices nearly every day. ENGIE approached Digitate for help to digitally transform its billing and payment process. The company wanted to move away from manual monitoring and remediation, which were both inefficient and risk-prone, increasing the operational cost and often leading to inaccuracies and delays in revenue generation.

Within 18 months, ENGIE was able to transform its workload process through a closed-loop solution that uses intelligent automation to automatically identify and solve any issues, further cementing its transformation into a digital enterprise. Digitate collaborated with ENGIE to provide a layered solution for monitoring workload processes to create a “blueprint” of the company’s entire batch system.

Now, ENGIE spends less time and effort on manual monitoring. It has reduced impacts to downstream processes like billing and payment communications by 80%, realized a 95% reduction in customer complaint tickets, and prevented €5 million per day ($4.87 million) in revenue loss. For its successful digital transformation, powered by Digitate, ENGIE was named Order-to-Cash winner in the Hackett Group’s 2022 Digital Awards.

With better business transaction monitoring as a part of their digital transformation, companies find business processes are well supported to generate cash, while transparency increases enterprise-wide. Financial institutions completing tens of millions of transactions daily can feel confident they can detect high-risk and suspicious activities.

Regardless of industry, business transaction monitoring has a critical impact on enterprises with tangible results. For instance, utility companies monitoring hundreds of thousands of bills have peace of mind that delays can be quickly remedied or prevented from happening at all. Yet, to be successful, organizations working to become digital enterprises must have the right technology.

“With the complexity of more and more systems in place, companies need tools to create visibility and confidence in IT to execute fast and protect the business,” Tripathi says.

With its closed-loop solutions, Digitate helps companies monitor all events across their IT infrastructure to create an integrated view. Tools detect anomalies, investigate, and self-heal to correct. Routine activities are automated, doing away with repetitive manual tasks and freeing up valuable IT workers’ time.

“We close the loop and we resolve problems to create value proposition for our customers,” Tripathi says. “They’re able to do this in one-tenth of the time it would otherwise take them.”

To learn more about better business transaction monitoring and how Digitate’s products can help you, visit Digitate.

IT Leadership

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Alphabet on Tuesday posted lower-than-expected numbers for its third financial quarter, where it fell behind both revenue and profit expectations. While overall revenue growth slowed to 6% in the quarter for Alphabet, Google Cloud grew 38% year-on-year to $6.9 billion, giving the company much needed support.

“I’ve long shared that cloud is a key priority for the company,” said Sundar Pichai, CEO at Alphabet, while addressing analysts on Tuesday, according to a transcript from Motley Fool.

“The long-term trends that are driving cloud adoption continue to play an even stronger role during uncertain macroeconomic times,” Pichai said.

Google Cloud includes Google’s infrastructure and platform services, collaboration tools, and other services for enterprise customers. Google Cloud generates revenue from fees received for Google Cloud Platform services, Google Workspace collaboration tools, and other enterprise services.

Google Cloud is the third largest player in the global public cloud market, commanding over 10% market share, according to Synergy Research Group  estimates. That said, it remains a distant third in the overall cloud pie, where rivals AWS and Microsoft Azure continue to strengthen their dominant positions.

“Google has to grow more than 50% a year to play catch up. Overall cloud market has a lot of room for growth, and this is the savior for Microsoft and Amazon earnings,” said Ray Wang, principal analyst at Constellation Research.

Microsoft, which also issued its quarterly financial results on Tuesday, reported 35% growth in Azure and other cloud services, slowing from 50% growth seen in the same quarter last year. Part of the problem is the strengthening US dollar, which wiped out about 7% of growth in the most recent quarter for Microsoft’s cloud business.

Google Cloud is the only green shoot for Alphabet

Google is facing severe pressure on its ad revenue, which has slowed down its overall growth to a mere 6% in the third financial quarter, compared with 41% growth it reported in the corresponding quarter last year. With 38% growth and accounting for about 10% of the company’s revenue, Google Cloud is the only green shoot in Alphabet’s current financial numbers. However, Google needs to pull up its socks before even Google Cloud growth starts to slow down.

“Google’s cloud results (38% growth) are better than Microsoft’s Cloud growth of 20%. But with a small base compared to Microsoft and AWS, the growth expectations are higher from Google Cloud,” said Pareekh Jain, CEO of EIIRTrend & Pareekh Consulting. “Google Cloud’s growth rate though slowing down should be higher than AWS and Microsoft. It should capitalize on growth opportunities in underpenetrated geographies. It should also become profitable in the coming quarters, taking some hard decisions like shutting down Google Cloud IoT.”

The global cloud infrastructure services market—which includes Platform as-a-service (PaaS), Infrastructure as-a-Service (IaaS) and hosted private cloud services—hit $54.7 billion in Q2 2022, with 12-month revenue reaching $205 billion, according to Synergy Research Group.

Google continues to invest heavily in cloud

Though revenue was up, Google Cloud losses expanded in the quarter on a year-on-year basis to $699 million compared with $644 million last year as the company continued to expand its global footprint by investing in new data centers and server equipment.

Earlier this month, Google announced plans to launch new cloud regions in six new countries: Austria, Czech Republic, Greece, Norway, South Africa and Sweden, which will expand the company’s footprint to 41 regions globally. This is to counter similar expansion plans from the likes of AWS, Microsoft and Oracle,.which are spending top dollar to expand.

“Our total cost of revenues was $31.2 billion, up 13%, primarily driven by other cost of revenues, which was $19.3 billion, up 20%. The biggest factor here was costs associated with data centers and other operations, followed by hardware costs,” said Ruth Porat, CFO at Alphabet during the analyst call.

“We’re still focused very much so on the path to profitability and free cash flow strength here, but we are continuing to invest in the business. The majority of capex does continue to be for our technical infrastructure. And as we’ve talked about on prior calls, servers really has been the largest driver of the investment dollars,” Porat said.

Google has been consciously trying to cut down its losses across business units, including in Google Cloud. While the losses expanded on a year-on-year basis, sequentially the losses in the cloud business have narrowed from $931 million in Q1 and $858 million in Q2 this year.

“Google Cloud is taking profitability seriously and removing some services where they don’t have the scale and are not profitable. For example, they announced the shutdown of Google Cloud IoT last quarter,” said Jain. “However, cloud market growth is slowing down after the hyper-growth of the last few years. Enterprises are facing inflation challenges and concerns of the macro environment are also impacting their spending decisions. Also, some earlier investments in clouds have not provided the expected savings to clients.”

Macroeconomic headwinds have already started affecting Google Cloud, Porat acknowledged, saying that certain clients are taking longer to decide on new investments while others are favoring short term projects over larger ones.

“In some cases, certain customers are taking longer to decide, and some have committed to deals with shorter terms or smaller deal sizes, which we attribute to a more challenging macro environment,” said Porat. “Some are impacted due to reasons that are specific to their business.”

Cloud Computing, Technology Industry

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Fueled by strong sales of cloud-based software that more than offset a decline in revenue from on-premises applications, SAP revenue jumped in the third quarter compared to the year-earlier period.

Total revenue for the quarter ending Sept. 30 was €7.84 billion (US$7.72 billion), up 15%, according to company’s quarterly financial report, released Tuesday. SAP’s cloud and software revenue for the quarter rose 14% to €6.71 billion.

Cloud revenue alone rose 38% to €3.28 billion. Revenue for the company’s S/4HANA cloud-based ERP offering, in particular, nearly doubled, rising 98% to €546 million.

SAP results benefited from the strong US dollar, as dollar sales were converted to euros—for example, overall revenue growth in constant currency terms, which exclude the effect of currency fluctuations, was 5% rather than the nominal 15%.

Nevertheless, the uptick in cloud sales is good news for SAP, since the company has been pushing customers to migrate from its legacy Business Suite 7, which is usually run on-premises, ever since S/4HANA was launched in 2015. Selling cloud software and services is good business for SAP and other software providers, since, among other things, cloud subscriptions provide a more predictable revenue stream than renewals of licenses for on-premises applications.  

Despite the jump in revenue, SAP posted a 1% dip in operating profit to €1.239 billion due largely to rising costs in areas including research and development, sales and marketing, and the need for more outlay on the maintenance of the company’s cloud services. Licenses for on-premises software declined 38% to €406 million, reflecting customer migration to cloud-based software.

Unsurprisingly, the Germany-based software giant was most eager to talk about its success in the cloud.

“The trust in SAP is reflected in our accelerating cloud momentum,” said CEO Christian Klein in the company’s earnings press release. “It’s clear that our transformation has reached an important inflection point, paving the way for continued growth in the future.”

Despite the negative news on operating profit, investors greeted SAP’s results warmly, with the company’s share price rising $5.69—or 6.25%—to $96.70 in mid-afternoon trading in the US.  

Like much of the tech sector, SAP is facing headwinds caused by the ripple effects of Russia’s invasion of Ukraine, as well as a bearish economic climate. Hence, the positive news on the company’s cloud business appears to have been enough to inspire confidence in SAP’s overall outlook.

SAP has made major headway on its transition from a license- and maintenance-based business to a usage-based, cloud-first company, due in part to a long string of acquisitions in the past decade in addition to the introduction of S/4HANA, which brings the company’s ERP platform to the public cloud of the customer’s choice.

However, the company has a long way to go. Just 12% of current and intended SAP ERP users in the US and Europe responding to a recent survey by digital transformation services provider LeanIX have completed the transition to S/4HANA. Another 12% said they have postponed the start of their move to S/4HANA, and 74% of enterprises that were polled are just at the evaluation and planning phase of their ERP migration.

ERP Systems, Technology Industry

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After years of investments, Oracle’s bet on cloud computing has started to pay off with nearly a third of its revenue in the first quarter of fiscal year 2023 coming from cloud services. Total cloud revenue (SaaS and IaaS combined) stood at $3.6 billion in the quarter, up 50% year-on-year, without accounting for currency fluctuations.

The company expects to hit an annualized revenue run rate of more than $20 billion combining all of its cloud services, company Chairman Larry Ellison said on Monday, adding that Oracle acquired close to 1,000 new “paying” cloud customers in the last three months.

“Total cloud growth, again, including Cerner, is expected to grow from 46% to 50% in constant currency, 42% to 46% in USD. I expect that total cloud growth for the fiscal year, excluding Cerner, will be above 30% in constant currency,” said Safra Catz, chief executive officer at Oracle, during an earnings call. Oracle’s $28.3 billion acquisition of healthcare IT company Cerner closed in June.

For the quarter ended August 31, the company reported a total revenue of $11.4 billion, up 23% year-on-year. In the same period last fiscal year, the company had reported a total revenue of $9.7 billion.  

Oracle sees growth in all segments of cloud computing

Oracle has been seeing rapid growth in all subsegments of cloud computing. Oracle’s cloud revenue includes IaaS and SaaS. IaaS includes revenue from Oracle Cloud Infrastructure (OCI), Oracle Cloud at Customer and Autonomous Databases, whereas SaaS includes revenue from Oracle Fusion, Netsuite and other services.

For the quarter under review, Oracle said IaaS revenue stood at $900 million, up by 58% year-on-year without taking in the effect of currency fluctuations and excluding any contribution from Cerner.  

OCI consumption in the quarter increased 104% year-on-year, followed by Oracle Cloud at Customer and Autonomous Databases consumption showing an increase of 92% and 56% year-on-year respectively, the company said.

This growth, according to Catz, can be attributed to the growth in demand for OCI that the company has been seeing since April this year, and a new sales strategy.

The company, over the last two years, has invested in hiring engineering talent in the field to help customers bring workloads to OCI, Catz said, adding these employees tailor these migrations in the most cost-effective manner.

In fact, Oracle seems confident that it will bring customers from rivals such as AWS and Azure to OCI, as soon as the next quarter.

“I personally have been talking to some of Amazon’s most famous brands (noticeable enterprises that use AWS services currently) that are running at AWS. And the AWS build is getting very large, and they can save a huge amount of money by moving to OCI. And I expect next quarter, we will be announcing some brands, some companies moving off Amazon to OCI that will shock you,” said Ellison during the company’s earnings call.

The Oracle chairman reiterated the statement when asked about OCI’s go-to-market strategy during the same call.

Government organizations such as UK Home Office and enterprises across the world such as Brazilian fintech Banco Digi+, Saudi Arabian financial service provider Al Yusr and several other companies have moved workloads to OCI in the last three months, the company said.

Oracle expects to hit an annualized revenue of $3.2 billion for IaaS, including OCI, Oracle Cloud at Customer, and Autonomous Databases.

The company’s total infrastructure subscription revenue including support (cloud and on-premises) stood at $4.4 billion for the quarter, up 7% in constant currency and excluding any contribution from Cerner.

Fusion applications, NetSuite continue to grow

Fusion applications such as enterprise resource planning (ERP) and human capital management (HCM), along with NetSuite ERP, continued to drive revenue momentum for Oracle and the company expects to hit an annualized revenue of $5.8 billion from these services.

“Our strategic back-office cloud applications now have annualized revenue of $5.8 billion and grew 33% in constant currency, including Fusion ERP, which was up 38%, NetSuite ERP up 30%, and Fusion HCM up 26%,” Catz said during the earnings call.

The growth in these services, according to the chief executive, can be attributed to cost savings in back office due to their direct implementation across enterprises.

For its first quarter as part of Oracle, Cerner chalked up $1.4 billion in revenue and the company claims that it is the best revenue quarter for the company since its inception.

Oracle expects Cerner to drive more revenue in the coming quarters as it completes its full integration.  

Oracle’s profits are declining

Although Oracle beat estimates to reach record revenue in the first quarter of fiscal 2023, net profit slowed due to higher operating expenses, led by sales, marketing and research and development.

The company reported an operating expense of $8.8 billion against $6.3 billion for the same quarter last year.

Net income for the company stood at $1.5 billion against $2.4 billion for the corresponding period last year.

Cloud Computing