Cloud computing has been cited as one of the key drivers behind innovation in the technology sector in recent months, with many of the bigger enterprise firms looking to shore up their offering with market share up for grabs.
Oracle has been one of the first to show its recent quarterly earnings have been boosted by new cloud infrastructure, with the first quarter of the financial year showing adjusted profits came in above expectations. It sent shares up 7% on the distribution of the news, with its aggressive entry into the cloud tech sector coming as analysts were worried it was getting left behind. While its pivot to the cloud took some time, its foray into this industry has been a clear and immediate success, giving more credence to the need for tech firms to get behind cloud computing developments.
Lawrence Ellison, the chairman, said its cloud-based venture, Autonomous Database, was behind the strong surge in profits, with improved licensing sales and an increased database storing option being key drivers for the growth.
It comes as good news for both Oracle and Microsoft, as they announced a joint venture in the last few weeks to share data centres and speed up their processing capacity. It is also good timing for Oracle after its hardware business continued to lose interest among the public, with profits in this sector falling 11%. As more companies migrate to the cloud, it is expected that hardware sales from big tech firms will continue falling.