Oracle, which is world’s third leading software making company, projects its new software licenses as well as Internet based subscriptions to rise by around 1-11 per cent in the May quarter after witnessing a 2 per cent slip in this quarter which missed the targets set by Wall Street.
The company’s Executives blamed the falling revenue figures as a result of poor performance by the company’s sales force. Safra Catz , Oracle’s Chief Financial Officer, while talking to financial analysts during a conference call said that what the company saw was the lack of urgency among its expanding sales force which led to a fall in the quarter 3 figures.
Since the company has been adding thousands of new sales representatives all over the world, the problem mainly lay with the sales execution and that too with the new sales personnel in the third quarter.
Presently, Oracle is struggling hard with its hardware segment and is also facing a close competition in cloud and internet based software business from companies like SAP AG, International Business Machines Corp, Workday Inc. and Salesforce Inc.
Profits of Oracles’ hardware segment, which the company acquired in 2010 from Sun Microsystems for $5.6 billion, also fell from $869 million to $671 million.
According to reports, Oracle will soon start delivering its new generation servers with an inbuilt record- breaking microprocessor in the coming week.