Software giants predict economic bounce back
IT companies have some reason for optimism as a flurry of positive financial figures released in the last 24 hours suggests corporate buyers may be spending money again.
Oracle, the world’s second largest software company behind Microsoft, says sales of new software licenses to businesses grew by 13 per cent to £1.1bn in the financial quarter ending 28 February 2010, with software license updates and support revenue up 13 per cent to £2.2bn.
Adjusted net income was still down 10 per cent once to £800m from £894m a year earlier, and the figures excluded the impact of Oracle’s estimated £5bn acquisition of Sun Microsystems finalised on 26 January.
Any upward trend in hardware and software sales signifying recessionary purse strings are loosening is likely to be confirmed when Microsoft and IBM announce their latest quarterly results next month, and HP in May.
Earlier this week, Red Hat, which sells support and maintenance contracts around its Linux based open source operating system, reported an 18 per year on year increase in software subscription revenue to £430m for the twelve months ending 28 February 2010.
Elsewhere though, consultancy giant Accenture saw its revenue from consulting sales, which make up almost half of its business, fall by three per cent overall, with decreasing revenue from the US and Europe mitigated by positive figures from the Asia Pacific region.