Oracle is very proud of its cloud sales. But not everyone is very happy about how it got them. (credit: Håkan Dahlström)
On June 16, Oracle Corporation released financial results for the fourth quarter of fiscal year 2016, and corporate executives trumpeted the company's cloud services success. According to the latest report, Oracle's cloud infrastructure, platform, and software services collectively brought in $859 million for the quarter ending May 31, compared to $576 million for the same period in 2015. Oracle brought in $2.853 billion in revenues for cloud and had an $8.9 billion profit for the year.
But those numbers don't tell the whole story. Oracle's overall revenue was down, largely because of its shrinking "on premises" software sales, which fell by $224 million versus 4Q FY2015 and by $1.245 billion for the year as a whole. Software license and software maintenance sales still account for 73 percent of Oracle's revenue, while cloud accounts for only 5 percent. Oracle's hardware revenues, which still account for 14 percent of its overall income, fell by 9 percent during the quarter, and 10 percent for the full year.
There is some controversy over Oracle's reported cloud sales numbers, however. On June 1, former Oracle senior finance manager Svetlana Blackburn filed suit against Oracle for wrongful termination in October of 2015, claiming in her filing that she was fired after she "resisted, refused to engage in, and threatened to blow the whistle on accounting practices she reasonably believed to be unlawful" surrounding how Oracle counted cloud revenues. An Oracle spokesperson denied there was any wrongdoing in a statement to the press.
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