Oracle driving sales to 4 vertical markets

Wednesday, February 9, 2011

The Latin America division of Oracle (Nasdaq: ORCL) is prioritizing sales to the telecommunications, financial services, oil and gas and government industries, Oracle's manufacturing and distribution VP for Latin America, André Papaleo, told BNamericas.

The company is also keeping an eye on the utilities, healthcare and retail industries, which the tech giant targets with industry-specific solutions, Papaleo said.

Brazil continues to represent Oracle's largest Latin American market, and Papaleo attributed favorable conditions there in part to government incentives.

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Brazil's federal government has spearheaded a highly publicized campaign to promote open source technologies, but Papaleo said these actions have not had a particular impact on Oracle's Linux sales.

"Aside from encouraging the adoption of open source software, this government encourages the adoption of information technology in general," he said.


Regional interest in certain technologies such as infrastructure outsourcing, automation, sustainability and green IT and cloud computing have reached a high point, Papaleo said, but he emphasized demand for cloud infrastructure.

"There, we have two vantage points. The first is of companies that want to be cloud providers. In other words, they are infrastructure companies that are going to create a cloud to sell on-demand services to everyone else," he said. "The other point of view concerns clients that want to use our own cloud. Oracle has a public cloud with our on-demand services."

Cloud demand is coming from firms ranging from SMEs to large enterprises, Papaleo said. But the executive declined to comment when asked to quantify sales increases in Oracle's cloud-based solutions, citing the "strategic" nature of that information.

BNamericas previously reported that Oracle foresees its Latin American revenues increasing by 20% this year, and also expects the regional software market to grow to US$1bn from US$800mn in 2011.

Globally, Oracle's net profits rose 28% year-over-year to US$1.87bn during its fiscal second quarter, ended November 30, while revenues during the same period increased 47% to US$8.58bn.