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June 18, 2015

Larry Ellison goes on cloud offensive

Salesforce and SAP said to be paying lots of money to Oracle.

By James Nunns

Oracle’s Larry Ellison is on the offensive again as he distracts from the company’s fourth quarter 2015 results.

Targeting SAP’s HANA in a conference call with analysts, he said: "SAP does not use HANA in the cloud very much. I know that because they keep paying us. They paid us again, this quarter, for Oracle for Concur, Oracle for Ariba, Oracle for SuccessFactors.

The three companies named have all been acquired by SAP and all had some systems on the Oracle database before the acquisitions.

Oracle is in the position where it makes all the hardware and software it needs to build its own cloud, therefore it has greater control over the cost and can run a more profitable cloud model.

SAP and Salesforce have used acquisitions to help build cloud businesses, with Ellison highlighting Salesforce as an example.

Ellison said: "Salesforce paid us a lot of money for their platform. They buy Exadata from us to run their data center, they buy the Oracle database. They paid a lot of money for the Oracle database," reported Business Insider.

Ellison continued to build up Oracle’s strength over rivals as he claimed it is winning 10 times more deals than Workday for a cloud version of ERP.

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