winefred, i also stand corrected. You are right of course in saying that roughly 35% of revenue is new license sales. Or about $1.5B of the $7B which oracle booked in the just-concluded quarter.
Here's the thing --- all installed oracle customers must pay an annual support contract equal to 22% of the original license cost. This entitles them to free updates and access to fixes/patches for as long as they maintain the contract. As you can imagine, this support fee is considerable, it's like buying a new set of licenses every 5 years -- and paying this support does NOT entitle you to onsite support. So strictly speaking this is support & services revenue but it's "by default" -- it comes in whether or not a new sale is made. Lots of customers let their support contracts lapse because of the cost -- they say "i'm paying millions a year but if i want onsite support i have to pay even more??!!!" but if you're off support and hit a business-killing bug, you're in trouble. In any case, Oracle is a very different company today than in 2004. The large acquisitions -- PeopleSoft, JD Edwards, Siebel Systems, Hyperion, BEA -- all happened in 2005 onwards. Oracle today is not just #1 in database, but #1 is middleware, enterprise HR (Peoplesoft) and CRM (Siebel). On 3/26/09, Winelfred G. Pasamba <[email protected]> wrote: > On Thu, Mar 26, 2009 at 10:33 AM, Orlando Andico <[email protected]> > wrote: >>> of course we know that the percent of product revenue is going down in >>> comparison to support revenue, except maybe for microsoft and adobe.* >> >> This is not true. The bulk of Oracle's revenue still comes from license >> sales. > > i'm looking at professor cusumano's book copyrighted 2004. he claims > that oracle's 2003 income statement says that the company made $9,475M > in revenues and that 35% is from new license fees and 65% is from > services & maintenance. so there has to be an explanation between > your authoritative statement and his interpretation. > > >>> is it still true that IBM is still the largest database vendor?* >> >> This has not been true for at least ten years. > > my mistake. it is not largest database vendor. IBM is #1 in Software > Magazine's Top Fifty Software Companies (2002) with $47,895M in > software and services revenues. ms is 24,666, eds 21,543, accenture > 13,348, and oracle 10,860 (all in millions of dollars). > > ibm's total revenues in 2002 was 81,186 including hardware (27,456), > other (4,296), services (36,360) and software (13,074). > > anyway it is nice to know that the big guys are backing linux and that > these big guys are somehow making free versions of their great > products which adds to the flavors of databases we can choose from. > _________________________________________________ > Philippine Linux Users' Group (PLUG) Mailing List > http://lists.linux.org.ph/mailman/listinfo/plug > Searchable Archives: http://archives.free.net.ph > -- Orlando Andico +63.2.976.8659 | +63.920.903.0335 _________________________________________________ Philippine Linux Users' Group (PLUG) Mailing List http://lists.linux.org.ph/mailman/listinfo/plug Searchable Archives: http://archives.free.net.ph
