Forbes - Markets
Aggressive Selling Tactics Likely to Have Lifted Oracle's Cloud Revenues, But at What Cost?
Software behemoth Oracle Corp. is slated to report its fiscal 2016 first quarter results on September 16th. (The company follows June to May fiscal year.) Oracle's cloud business has grown steadily in the last few quarters on the back of aggressive selling tactics and competitive pricing. On the other hand, the expansion in cloud has come at the cost of a decline in its legacy on-premise software business and the overall profitability. The situation is being further exacerbated by strong currency headwinds. Consequently, we believe that Oracle's cloud business is likely to continue its robust growth in the first quarter of fiscal 2016. But the cost of propping up the cloud business, and whether that cost is sustainable over the long term, remains to be seen.
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