Software giant, Oracle posted a 78% increase in company profits in its third fiscal quarter. This surge in profit can be largely due to Oracle’s acquisition of Sun Microsystems. The company acquired Sun Microsystems in 2009 for $7.4 billion. The Recession of ‘08-’09 made it difficult for smaller software companies to sustain the brunt of the economic hardships that many companies were facing. Larger software companies like Oracle acquired smaller software companies like Sun Microsystems during this time. Anyways, Oracle is starting to see its investment pay off. They managed to surpass last year’s profits of $1.9 billion, with $2.1 billion this third fiscal quarter. The company’s revenue is predicted to grow “9 to 13 percent, earning $10.4 billion to $10.7 billion”. The software giant believes that the increased gain in profit is also due to its 30% increase in licensing sales. I believe that many large software companies, like Oracle and Microsoft, will continue to buy up tech companies and firms in the future, as a means to increase their product diversity, and increase company profits.
I agree that software will continue to expand its products. Do you think there is any future risks for Oracle?
ReplyDeleteI don't see any looming risks or threats to Oracle's success/growth as a software company. Although, I would have to say that Oracle's major competition is Microsoft.
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