The Cloud Takes a Grip
 The move towards the cloud has had a major impact on more traditional types of IT and web hosting companies, and now it is impacting the bottom line of major corporations. Oracle Corporation, the American computer technology giant headquartered in Redwood City, California, has just released sales and profit figures that miss analyst's estimates, news that brought the computer hardware and software company's shares down 8.5 percent in late trading yesterday (20 March 2013). Oracle's third-quarter profit was 65 cents a share on sales of $8.97 billion, while analysts projected profits of 66 cents on sales of $9.37 billion in the period. The key reason for Oracle’s disappointing figures lies in the cloud - with many enterprises moving to the cloud, they use fewer databases and less hardware, cutting into the mainstay of Oracle's operations. Although Oracle's net income for the quarter (ending February 2013) remained fairly constant at $2.5 billion, the number of new software licenses issued by Oracle fell alongside a fall in subscription sales. New license sales had been projected to reach $2.55 billion, whereas they actually only reached $2.33 billion. Analysts has also projected hardware sales of $783 million, whereas they actually reached $671 million. With demand for on-premise software easing, Oracle's move to becoming a web-based software provider has not been smooth, the company only launching its cloud offering in the middle of 2012 amidst stiff competition. Is the cloud becoming the de facto standard? Let us know your thoughts. Add your comments below. Comment News
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