Supplier Scouting Reports


UpperEdge Supplier Scouting Reports provide IT vendor management and executive decision makers with unique insights into market and supplier developments. This objective, independent perspective enables IT decision makers to better understand their key suppliers, and provides actionable advice for improved relationship management, risk mitigation, and value enhancement. Our reports focus on the overall supplier performance and market behavior that is critical for effective negotiations and long-term relationship management. They do not cover the suppliers’ products, capabilities or services.


 

Oracle Q2 2017 Report

Oracle had an outstanding quarter with continued growth and strong results in the Cloud, surpassing the $1B Cloud revenue mark for the first time. Cloud revenue has now eclipsed declines in its new on-premise software licensing revenues which is a significant milestone. Oracle continues to execute extremely well in its pivot to the Cloud and appears to be gaining momentum as this was Oracle’s best non-Q4 quarter, with a bold claim that Q3 has a chance to be their best-ever quarter period.

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Oracle Q4 2016 Report

Oracle had a great quarter with continued growth that exceeded expectations and over achieved results in the Cloud. Strong Cloud revenue growth and improving margins on Cloud deals have nearly eclipsed declines in its new on-premise software licensing revenues. There is a Cloud land grab going on and Oracle has not only gone all in to win, but is now developing a track record of success. However, total revenue was flat YOY in constant currency with net income slightly increasing by 4%, leaving considerable opportunity for improvement.

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Microsoft Q4 2016 Report

Microsoft had an impressive quarter and beat the street’s earnings and revenue estimates with Q4 revenue of $22.6 billion. This is up from $22.18 billion a year ago, representing an increase of 5% in constant currency. The impressive growth of the cloud business continued, which led to commercial unearned revenue beating expectations at 8% growth, and the contracted-not-billed balance exceeding $25.5B. Investors were optimistic as evidenced by Microsoft’s stock jumping up immediately after the earnings were released.

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Oracle Q2 2014 Report

Oracle’s total revenue in Q2 was $9.3B. This was slightly better than expected ($9.1B) but also represents yet another quarter of nominal to negative total revenue growth (total revenue grew only 2%). Contributors to this were Oracle’s new software license and cloud software subscription revenues which were down .4% year-over-year coming in at $2.4B. Achieving negative growth in this area not only poses issues in the immediate term but perhaps more importantly creates issues longer term as well. Each new software license and cloud software subscription sold carries with it future support and renewal revenue that currently drives about half of the total company revenues (Software updates and product support revenues were $4.5B for the quarter). Because of this, Oracle will largely focus its attention on improving software sales, most specifically cloud software, to ignite Oracle’s revenue growth.

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Salesforce.com Q4 2016

Salesforce.com (“Salesforce”) finished fiscal 2016 strong and reported exceptional revenue growth across all of their cloud service offerings while beating analyst expectations. Here are some of the financial highlights: Q4 revenue grew 25% year-over-year, reaching $181B and beating expectations of $1.79B Full year revenue grew 24% year-over-year, reaching $6.67B and moving closer to their goal of $10B Full year deferred revenue and unbilled deferred revenue reached $4.29B and $7.1B respectively.

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Oracle Q2 2016 Report

Oracle was boastful during its earnings call, having exceeded its previous guidance for total revenue and earnings per share for the quarter. This was led by continued strong growth in the Cloud and better than expected performance in on-premise software. However, total revenue was flat YOY in constant currency and net income declined by 3%, leaving considerable opportunity for improvement.

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Salesforce.com Q2 2016 Report

Salesforce.com (“SFDC”) beat The Street’s $1.6B revenue expectation this quarter by posting Q2 revenue of $1.63B. This represented an impressive 24% increase in revenue year-over-year. The subscription and support revenues associated with all of SFDC’s cloud offerings experienced double digit growth, with Service Cloud and Marketing Cloud revenue increasing 38% and 33% respectively year-over-year. SFDC is optimistic that these two offerings can add incremental revenue to its base subscription agreements which started with SFDC’s Sales Cloud solution where revenues are up 10% year-over-year.

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SAP Q2 2015 Report

SAP confirmed they met their revenue expectations for the second quarter of 2015 with total revenue growing 20% year-over-year. CFO, Luka Mucic, reaffirmed SAP is on pace to deliver on its prior guidance for the full year. A thorough review of SAP’s second quarter financials coupled with UpperEdge’s recent SAP engagement experience makes for some compelling observations. As customers assess their relationships with SAP and proceed into negotiations during the second half of the year, UpperEdge recommends SAP customers consider the following:

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IBM Q3 2014 Report

IBM missed consensus revenue expectations for the tenth consecutive quarter and officially abandoned its $20 EPS goal by 2015. IBM’s failure to generate top line revenue growth can no longer be mitigated with its higher margin growth initiatives, beneficial tax rates, and share repurchase program to drive EPS improvements. IBM is focused on a deeper strategic transformation, while Wall Street analysts are openly questioning if IBM has the proper strategy, leadership and execution capabilities, and if more serious underlying issues have been created by the short-term actions to achieve the all-consuming $20 EPS goal.

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