Oracle announced Monday that it would begin the process of closing its cloud-based database software company.
The company will “focus its attention on its core business,” chief executive Scott Anderson said during the company’s earnings call, which included a discussion of the company being acquired by Google.
Anderson added that Oracle will not continue to have a business focus.
“The Oracle business will not be our focus, and we will not have a commercial focus,” Anderson said.
Anderson said that while Oracle’s cloud software business will continue to grow, it will be driven by the core business.
Oracle’s new cloud software division, the Oracle Cloud Platform business, will be focused on data management, he said.
“We will have the same core business we have today,” Anderson told analysts, including analysts at FactSet.
The company has seen strong growth over the past year, but analysts have questioned whether Oracle’s core business can continue. “
Our core business is going be data, and the Cloud Platform Business is going a different direction.”
The company has seen strong growth over the past year, but analysts have questioned whether Oracle’s core business can continue.
In the last quarter, the company saw $1.4 billion in revenue.
However, analysts are skeptical about Oracle’s ability to retain a core business focused on software and analytics, especially as it looks to acquire new data-management services.
For instance, IBM’s Watson has been touted as a potential acquisition target for Oracle.
“Oracle is clearly trying to create a company around the cloud,” analyst Craig Barratt wrote in a research note on Monday.
“They have a great product, but they’re not really delivering on the promise of it.
There are some challenges with that.
I’d like to see them focus on some of the areas where it makes sense for the company.”
Anderson said Oracle will focus on the core software business.
“If you look at where we’re at, we’re pretty happy where we are,” he said, adding that the company will continue with a business strategy that focuses on business intelligence, data, data analytics and other business processes.
Oracle will continue its efforts to build out its enterprise infrastructure for the cloud, including a new server facility, Anderson said, but the company won’t make any announcements about a specific acquisition.
“In terms of what we’re going to do with that, I don’t have an answer yet,” he told analysts.
“I’m not saying we won’t do something, I’m just saying I haven’t heard that announcement yet.”