#oow16: Oracle Cloud revenue in Q4 2016 almost hit one billion US Dollars

Speaking at Oracle Open World 2016, Oracle Chairman and CTO, Larry Ellison, pointed out that Oracle SaaS and PaaS platforms sold more than anybody last fiscal year and the company was looking into selling more on the two tiers of cloud computing targeting to hit a two billion USD mark in revenues.

In the last quarter, Oracle Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $690 million, up 66% in U.S. dollars and up 68% in constant currency. Total Cloud revenues, including infrastructure as a service (IaaS), hit $859 million, up 49% in USD and up 51% in constant currency.

Oracle’s Total Q4 Revenues stood at USD 10.6 billion, down 1% in U.S. dollars and flat in constant currency. SaaS and PaaS gross margins continued to improve throughout the year, exiting FY16 at 56%. Bookings in Q4 were also very strong enabling Oracle to raise our guidance for Q1 SaaS and PaaS revenue growth, which we now expect to be between 75% and 80%.

In Q4, Oracle also added more than 1,600 new SaaS customers and more than 2,000 new PaaS customers and in Fusion ERP alone, Oracle added more than 800 new cloud customers. Today, Oracle has nearly 2,600 Fusion ERP customers in the Oracle Public Cloud which is ten-times more cloud ERP customers than Workday.

“We expect that the SaaS and PaaS hyper-growth we experienced in FY16 will continue on for the next few years giving us a fighting chance to be the first cloud company to reach $10 billion in SaaS and PaaS revenue,” said Ellison.

During the same time though, Oracle’s traditional on-premise software business slowed, and revenue was flat at $8.4 billion during the quarter.