Oracle Q2 2014 Cloud Bookings Grow 35%; Partners Involved?
Oracle (ORCL), a Top 100 Cloud Services Provider in 2013, says cloud computing bookings grew 35 percent in Q2 2014. That sounds impressive but it’s unclear how much of that revenue involve channel partners and integrators driving customers toward Oracle’s cloud.
“In Cloud, we had bookings growth of 35%, and saw excellent growth across all major product pillars. Fusion SaaS was even better with HCM, sales force automation and ERP, all up triple digits. We are adding customers at high growth rates, contract sizes are growing and hundreds of customers are now live Fusion SaaS.”
“We are going to be cost competitive and price competitive at the infrastructure level while being highly differentiated at both the platform level and the application level. Already we have more enterprise SaaS applications than any other cloud services provider. We will continue to expand our footprint and use our size as an advantage.”
Still, Oracle’s overall business isn’t growing all that much. Q2 2014 revenues grew 2 percent to $9.3 billion and net income fell 1 percent to $2.6 billion. The results beat Wall Street’s expectations.
Oracle Cloud Partner Revenues
But the big question for our readers involves Oracle’s PartnerNetwork (OPN) Specialized partner program, and the potential cloud synergies. Jeff Porter, Oracle’s director of worldwide alliances and channels for go to market and cloud programs, is the name to know on that front.
Porter and his team designed a two-tier cloud partner program:
- Referral partners can earn up to 10 percent of the total cloud contract.
- Resale partners control end-customer pricing and billing, and therefore control their potential profit margins.
Porter was incredibly upbeat during Oracle OpenWorld 2013 earlier this year. But what role did his partner strategy play in Q2 2014 results? I’m checking.