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As Oracle Profits grow on Cloud Computing sales, its ready to take on Amazon

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CIOL As Oracle Profits grow on Cloud Computing sales, its ready to take on Amazon

Oracle is aiming big in the cloud computing domain. After posting strong sales for its cloud-computing business that jumped 59 percent to $969 million in the last quarter, Larry Ellison, Oracle Chairman and CTO said:

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"Next week at Oracle OpenWorld, we will introduce the second generation of our Infrastructure as a Service. Our Generation2 IaaS delivers twice the compute, twice the memory, four times the storage and ten times more I/O at a 20 percent lower price than Amazon Web Services. IaaS represents a huge new cloud opportunity for Oracle to layer on top of our rapidly growing SaaS and PaaS businesses."

CIOL As Oracle Profits grow on Cloud Computing sales, its ready to take on Amazon

Oracle is competing with Amazon and Microsoft as companies shift more of their computing operations off-site and into the cloud. The company is rapidly building out its cloud business, particularly in the markets of selling access to web applications, known as software as a service, and selling access to tools to program and manage apps as well as analyze data, called platform as a service.

Besides the strong show in the cloud computing business, Redwood City, Calif., company’s revenue edged up 2 percent to $8.6 billion in the fiscal first quarter. But the quarterly growth was offset by steep declines in its conventional software licensing business.

Sales of new software licenses fell 11 percent to $1.03 billion. For the period ended Aug. 31, Oracle reported a profit of $1.83 billion, or 43 cents a share, compared with $1.75 billion, or 40 cents a share, a year earlier.

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