Cloud is fundamentally more profitable than on-prem, says Oracle's Safra Catz as revenue misses mark for investors

Revenue growth of 4 per cent was not enough for Oracle to appease market watchers as the omnipresent software vendor's shares slumped following the release of its latest quarterly financials. Big Red confirmed revenue went up 3.8 per cent year-on-year to $9.728bn for Q1 of its fiscal 2022 ended 31 August, yet this was lower …

[TVU]

"Cloud is fundamentally more profitable than on-prem, so says vested interest Oracle's Safra Catz"

^ Now that is more like it.

[Anonymous Coward]

"Cloud is fundamentally more expensive for the customers"

[a_yank_lurker]

Moving money

The cloud is more profitable because it is subscription service that is difficult to migrate away from. Thus it is easier to raise rates and cut back support.

[deadlockvictim]

Re: Moving money

Once you have them by the balls, hearts & minds follow quickly.

I don't know whom I should attribute it to but it does sum up cloud subscription model very nicely.

[Commswonk]

Re: Moving money

Once you have them by the balls, hearts & minds follow quickly.

I don't know whom I should attribute it to...

Theodore Roosevelt.

[elsergiovolador]

Vendor Lock-In

Or Hotel California?

[trevorde]

Meanwhile at Oracle...

Larry Ellison: Time for another licence audit! Mwahahahahaha!

[goes back to stroking white cat]

[Youngone]

Re: Meanwhile at Oracle...

The huge multi-national I work for starting having those every year, and surprise surprise, we owed Larry more and more.

As a result we're now in the process of migrating off Oracle. Its a painful process, but clearly worth it.

[Anonymous Coward]

I translate that quote on Oracle's cloud as:

"We charge way more for our cloud offerings. Only utter fools would move to the cloud instead of staying on-prem if they're budget-conscious in the slightest..."