Software firm Oracle announced that it will be investing US$2.4 billion in cloud business, per quarter.
The company’s cloud business has progressed by 48% in Q2, helping revenue grow 25% year-on-year.
The category has outpaced license support, therefore Oracle projecting cloud infrastructure (IaaS) margins to get better in the following quarters.
For the past two quarters, IaaS services have experienced triple digit bookings growth. Oracle CEO Safra Catz said investments of this level would not negatively affect margins.
Total cloud revenue (SaaS and IaaS) was at US$3.8 billion in Q2, up 48% year-on-year. IaaS was responsible for US$1 billion in revenue, while SaaS brought in US$2.8 billion.
Oracle expected 46 to 50% growth in cloud revenue versus a 21 to 23% growth in overall revenue.
They also reported double digit growth in many of its businesses, among them Fusion Cloud ERP, NetSuite ERP and Cerner.
