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Oracle Corporation (NASDAQ:ORCL) SaaS Outlook for 2018

Oracle Corporation’s (NASDAQ:ORCL) SaaS revenue exploded last year with growth of 60%. As you can see, HADE Technologies’ machine learning algorithms predicted the company’s performance to near perfection. This performance was based on the cannibalization rate of Oracle’s core licensing to SaaS business, in which the company pushed SaaS significantly harder in 2017 than in years past. 

For this reason, Oracle had a good year in SaaS. However, that good performance came at a cost of losing new licensing and core product business. 

Our algorithms are now predicting a very significant deceleration of growth to under 30%. While Oracle should exceed $4 billion in cloud SaaS revenue, the creation of new revenue will become much harder due to a slower adoption of CRM services offered through SaaS and a slower disposal of legacy product offerings. 

While 30% growth is still meaningful, the abrupt deceleration will bring focus to Oracle’s inability to steal additional market share in its core businesses. Furthermore, Oracle has set its own bar very high, and continues to boast its performance against the more innovating cloud service providers such as Salesforce.com (NYSE:CRM) and even Amazon.com (NASDAQ:AMZN). 

We consider it highly unlikely that Oracle is able to exceed our expectations for SaaS performance in 2018, with the indicators and results of our program being very clear.