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Jon's avatar

Question- software was down, but you included license/support/SaaS in your comments. SaaS was up at least 11%. While smaller in terms of rev, it’s been growing at double digit rates for some time now. It’s also a higher margin and will be a delivery mechanism for agentic ai, assuming oracle doesn’t screw it up.

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App Economy Insights's avatar

Yes, SaaS is growing, but in part at the expense of legacy Software (License revenue was actually down 21%). When you blend the non-IaaS revenue, the net growth is only 3% (essentially flat).

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The AI Architect's avatar

Exceptional breakdown of Oracle's high-leverage bet on AI infrastructure. The gap between $523B RPO and actual cash generation is the real story here. I watched similar construction risks play out with earlier cloud buildouts but never at thislevel of capital intensity. Executon speed vs burn rate will detmine everything.

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Christopher Gallo's avatar

Oracle’s future contract value relies so heavily on OpenAI, which itself has no money, that it is a farce and is being discounted by the market. Wealthfront is pulling a page from Schwab, which made far more money in the 90s by not paying the 6% money market to their clients and pocketing the difference than by cheap trades.

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