During Oracle’s 2nd quarter, which ended in November, its cloud business grew by 48% to reach $3.8 billion. IaaS accounted for $1 billion in revenue, while SaaS revenue was $2.8 billion. This growth in cloud helped raise company revenues by 25% and will lead Oracle to invest $2.4 billion per quarter in this area. Oracle’s Cloud business has been growing faster than license support, with Infrastructure-as-a-Service (IaaS) margins improving as demand continues to grow. During the last two quarters, Oracle has experienced triple-digit growth in revenue. Operating margins at oracle increased from 39% to 41% between the first and second quarters.
Oracle’s infrastructure business grew by 59%, while its applications cloud business grew by 45%. Forward-looking expectations are for growth in the region of 50% for the cloud business and 20% in overall revenue. Growth in services such as Fusion and NetSuite ERP was nearly 30%. These results, plus reduced operating expenses, have helped halt the decline in revenues in the previous quarter, with operating expenses down to $9.2 billion compared to $11.1 billion in the second quarter of the last fiscal year. Net income was $1.7 billion compared to $1.2 billion in the fiscal year’s corresponding quarter.