Amazon Web Services (AWS) uses Oracle technology to run its business, according to Oracle CTO Larry Ellison, who sounded fiery on a conference call when an investor asked him about customers moving off Oracle database.
“Let me tell you who’s not moving off of Oracle,” Ellison said on Oracle’s second quarter fiscal 2018 earnings call. “A company you’ve heard of just gave us another $50 million this quarter to buy Oracle database and other Oracle technology. That company is Amazon.”
Amazon did not respond to questions about it being an Oracle customer and spending $50 million this quarter.
In other words, it was a typical Oracle earnings call with Ellison bluster and references to AWS.
The company reported a 6 percent revenue increase to $9.6 billion, compared to the second quarter last year. It also saw total cloud revenues grow 44 percent to $1.5 billion. This includes software-as-a-service (SaaS) revenues of $1.1 billion (up 55 percent), and platform as a service (PaaS) plus infrastructure as a service (IaaS) revenues of $396 million, up 21 percent.
But this cloud growth wasn’t as strong as investors had hoped, and the company’s shares fell almost 7 percent in after-hours trading. They rebounded a little on Friday morning and were down about 3 percent at press time.
“We think a major concern for investors is the long-term growth of cloud revenue, particularly the SaaS business, given the revenue miss and lower guide,” wrote BMO Capital Markets analyst Keith Bachman in a research note. The firm lowered its projected fiscal year 2019 cloud revenue growth for Oracle from 28 percent to 22 percent.
Ellison said the company’s new autonomous database, which will ship in January, will boost cloud revenue. “This will dramatically accelerate the growth of our PaaS and SaaS business.”
And, he added, the price of running the database in Oracle’s cloud is less than half the cost of running a database in AWS.