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Oracle Asia Pacific & Japan Revenues Soar at USD 2 Billion

"Asia-Pacific is growing faster than the rest of the world, which does not have China and India in their economies. I'd expect us to grow faster than the rest of the [Oracle] organization," Derek Williams, chairman and & executive vice president, Oracle Asia Pacific & Japan added. An increase in customers has pushed Oracle to chalk up a record USD 2 billion in total revenues from the Asia Pacific and Japan region in Fiscal Year (FY) 2006, an 18% increase since the previous year. New license revenues from applications in JAPAC grew 69% while database and middleware new license revenues grew 13% for the full year over FY05. JAPAC accounted for about 14% of total revenues worldwide and 19% of total new license revenues worldwide.

"In the last quarter of FY06, we delivered significant revenue growth across virtually all product lines and geographies. We are growing faster than the competition and rapidly winning market share," said Williams, we are giving our customers what they want: open, flexible and standards-based software that drive business agility, insights and ultimately growth and stockholder value," Williams added.

Entry into new market segments, growth in the mid market offerings and restructured and streamlined operations have powered Oracle growth in the Asia-Pacific region, including India, according to Shekhar Dasgupta, Managing Director, Oracle India.

In India, although Oracle has been present for over 15 years, it is today gaining in strategic importance to Oracle’s global operations. "India continues to steadily move up the ranks of countries in the APAC region. Going forward we will continue to further enable Indian businesses, including the mid-market segment, as they compete in a global market place," Williams said.

Oracle recently launched the Release 2 of Oracle Database 10g with advanced grid computing features and expects some pioneers in India to seriously look at using grid computing. Oracle's data hubs will play a big role in helping customers deploy Service-Oriented Architectures (SOA) and some companies in India are likely to take to these new initiatives.

Oracle continues to lead the database market and its Relational Database Management Systems (RDBMS) has increased their market share and growth in Asia Pacific, excluding Japan. According to IDC, Oracle’s license and maintenance revenues had a 47% share in the APAC RDBMS software market in the year 2005, almost double the market share of its nearest competitor. In India, IDC reported that Oracle captured 72% of the database market, with a 79% year-on-year growth.

While its global middleware market has also been steadily growing, it has attained the top position in Customer Relationship Management (CRM) applications globally with the completion of its Siebel acquisition in FY06. In APAC, according to analyst firms, Oracle is number one in CRM with 17% market share.

Momentum Builds for Oracle Fusion Middleware in Asia Pacific

Oracle's global middleware new license revenues grew 57 percent year-on-year in Q4FY06. Underpinning Oracle's middleware strategy is Oracle Fusion Middleware, a comprehensive, standards-based family of middleware products to adopt and manage SOA in heterogeneous computing environments.

According to a recent Gartner report, "SOA will provide the basis for 80 percent of development projects, by 2008." Central Board of Excise & Customs (India), Department of Income Tax (India), GuangDong Telecom (China), Hanjin Shipping Co. Ltd (Korea), Harris Scarfe (Australia), Orient Overseas Container Line (HK), and YCH Group (Singapore) are a few of the growing number of organizations in Asia Pacific (excluding Japan) using components of the Oracle SOA Suite, part of the Oracle Fusion Middleware product family, to help maximize business efficiency, increase IT flexibility and lower costs.

Today, with more than 25,000 customers across Asia Pacific, excluding Japan, Oracle is continuing to invest in key business initiatives such as expansion into 33 non-metro cities across China and India to capture new market opportunities, promote growth in the local economies and accelerate development of the local software industry. It has added 490 new partners during FY06, taking the total to 2,120 across the Asia Pacific region, excluding Japan.

It has increased customer support in APAC with the establishment of an Oracle global support center in Dalian, a Northeastern city in China. As one of 18 Oracle Global Support Centers worldwide, the Dalian facility will serve as a multi-lingual service desk to provide local-language technical assistance to Oracle customers in Mainland China, Korea, and Japan.

While the last six months saw a large uptake in Oracle mid-market offerings, Oracle entered newer markets and consolidated presence in sectors such as polyester films, gems and jewellery, dairy, pulp and paper, metals, textiles, pharmaceuticals, retail and clinical trials management.
According to Oracle, over 90 per cent of the major telecom operators in the country use Oracle technology and applications products, 80 per cent of banks use Oracle. Oracle penetrated into the financial services industry with Oracle Financial Services Applications (OFSA), which enables financial institutions to carry out risk management and other such high-end business processes.


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