The Numbers Don't Lie: Oracle Has Its Head in the Cloud

Oracle announced a $9.3 billion acquisition of NetSuite to expand its market share in the rapidly growing public cloud market, which is expected to reach $140 billion by 2019. Competing with Salesforce, Microsoft, and SAP, Oracle's deal is one of the most expensive software takeovers, with a revenue multiple of 11. As Oracle shifts to cloud services, it experiences a decline in upfront license fees but an increase in subscription revenue. This transition leads to volatile financial results, which Oracle's Chairman Larry Ellison has tried to stabilize through acquisitions. Oracle's earnings are set to be released after the US closing bell.

Who are the main competitors of Oracle mentioned in the text?

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What challenges does Oracle face as it transitions to cloud services?

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