Oracle Earnings Call Insights: Database Outlook and Cloud Integration
Oracle Corporation (NASDAQ:ORCL) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
John DiFucci – JPMorgan: Mark, you mentioned the strength in database and it’s reflected in license, but it’s also I think reflected in margins this quarter. And you mentioned – and I was thinking, it’s really too early for 12c to be having much of an impact on the numbers anyway. You mentioned Options, Enterprise Manager. I guess the question is why this strength right now in Database and how does this business look as you look forward, the core Database with Options?
Mark Hurd – President: Yes, the interesting thing, John, first is we not only had good growth in Database, but we also had growth Database in the U.S., so it was very strong. It’s exactly what you described. First, it was broad-based across the regions, even with a strong showing in the U.S. and it was really the Options. And again, as you start dealing with some of the issues you see in the market, take for example something as simple as the data growth that you all hear in the industry; 30%, 40% data growth that our customers talk about. The ability for us to compress that data is a tremendous opportunity and it’s an option that you can get advanced compression, you can get Exadata that dramatically changes our customer’s total cost of ownership. So we had good growth really across regions particularly strong in the U.S. particularly strong in Options, GoldenGate was very strong. We had good growth in rack, active data in-memory caching, security was I mentioned this I think last quarter too we had very strong growth again in security and these are, these are turning to be material businesses, John. And I think this is not really the – I would not call any of this really any significant impact from 12c. This is really just the core data that is in the Options around the core database.
John DiFucci – JPMorgan: You mentioned Exadata. So that sounds like sort of that Exadata pulls along some of these options, that’s having an effect here?
Mark Hurd – President: It’s all part of one story. John in the context of, we’ve got so much database out there, leads you to drive more performance, more security drive more compression. You can get a lot of it with the Database as a product. You can get even more of it when you buy Exadata and so it’s strong value proposition.
John DiFucci – JPMorgan: If I might just one quick one for Safra. Safra the guidance you gave is a little bit below where the Street is right now. You mentioned you talk about the exciting pipelines that seems to works. But you also talked about managed, the sales people or sales managers being, I don’t know what word you used, but it sounded like being prudent. I guess in the past you sometimes gauged what that guidance is. Do you think that that is something, the guidance you’ve given, is it similar to their conservatism that is prudent that you normally give, is it little more conservative or less if you can comment on that?