ORACLE CORP

Oracle is an enterprise-software and cloud-infrastructure provider whose core business is selling database software, packaged applications and cloud services. Revenue is generated through recurring subscription and support contracts for cloud services and on‑premise licenses, one‑time license sales, hardware and professional services; the company leverages a large installed base and enterprise sales motion to cross‑sell software, cloud and support.^[1]

Business Segments

• Cloud services & license support: the largest stream, comprising roughly three‑quarters of total revenue; includes SaaS, PaaS and support for on‑premise licenses.^[2]
• Cloud license & on‑premise license: perpetual and term license sales for database and middleware products (≈9% of revenue).^[2]
• Services and hardware: professional services, support, and engineered systems/hardware (combined ≈14% of revenue).^[2]

Competitive Position

• Large installed base and enterprise penetration: Oracle’s long history in databases and enterprise applications creates high switching costs for customers and steady support/subscription revenue.^[3]
• Scale in enterprise software and integrated stack: owning database, middleware, applications and cloud infrastructure gives cross‑sell advantages versus point vendors.^[4]

Investment Considerations

• Recurring revenue and high gross margins: the subscription/support model provides visibility and margin leverage, making cash flows more predictable than pure‑license models.^[2]
• Cloud transition opportunity vs. competition: migrating large on‑premise customers to cloud offers growth upside but requires continued investment and effective customer migration.^[2]
• Capital intensity and execution risk: shifting to cloud infrastructure involves significant capital and execution risk; investors should weigh investment needs against margin trajectory.^[5]
• Legal, security and competitive risks: dependence on large enterprise customers, compliance and security exposures, and intense competition from hyperscalers and enterprise‑software peers are persistent risks disclosed in filings.^[5]