Oracle's co-CEOs Safra Catz and Mark Hurd had very positive remarks regarding Oracle's Q2 performance: total revenues of $9 billion exceeded guidance, SaaS and PaaS bookings growth of 75% with revenue of $487 million up 38%. Meanwhile on-premise software revenues (software license, updates, and support) were flat at $6.4 billion.
Currently Oracle's sales professionals are working feverishly in the final weeks of closing Q3 on February 29 to keep this momentum moving in the right revenue direction to meet Q3 and Q4 guidance expectations. Then comes the fourth quarter and EOY revenue execution where we expect 40% of Oracle's full year revenue to be booked. Here's what we're seeing in the marketplace and from our client interactions and consulting projects.
- Cloud Fusion momentum fueled by spirited sales. We are absolutely seeing the SaaS, PaaS, and IaaS revenue and client momentum being reported in Oracle's Q2 earnings release. We are also experiencing the sales tactics being employed to drive this aggressive growth – based on lucrative sales commission incentives and selling cloud products “credits” to reduce on-premise cost and support fees. We're seeing the same highly competitive sales game from Salesforce and Workday, among others.
- Play Oracle's sales game — or don't. Oracle's account teams are infamous for their siloed divide-and-conquer approach to selling applications, database, and hardware. We advise our clients to effectively manage Oracle's sales teams by executive escalation and staying focused on business issues to receive the value they are paying for.