

What does Oracle do? How does Oracle make money: Business Model
Larry Ellison co-founded Oracle Corporation in 1977 with Bob Miner and Ed Oates under the name Software Development Laboratories (SDL). Ellison took inspiration from the 1970 paper by Edgar F. Codd on relational database management systems (RDBMS) named “A Relational Model of Data for Large Shared Data Banks.”
He heard about the IBM System R database from an article in the IBM Research Journal provided by Oates. Ellison wanted to make Oracle’s product compatible with System R but failed to do so as IBM kept the error codes for their DBMS a secret. SDL changed its name to Relational Software, Inc (RSI) in 1979, then again to Oracle Systems Corporation in 1983, to align itself more closely with its flagship product Oracle Database.
In 1995, Oracle Systems Corporation changed its name to Oracle Corporation. Oracle sells database software and technology, cloud-engineered systems, and enterprise software products, such as enterprise resource planning (ERP) software, human capital management (HCM) software, customer relationship management (CRM) software, enterprise performance management (EPM) software, and supply chain management (SCM) software.
In this strategy story, we analyzed the business model of Oracle to understand what Oracle does and how does it make money.
What does Oracle do?
Oracle provides products and services that address enterprise information technology (IT) environments. Oracle’s products and services include enterprise applications and infrastructure offerings that are delivered worldwide through a variety of flexible and interoperable IT deployment models.
Oracle’s customers include businesses of many sizes, government agencies, educational institutions, and resellers that Oracle markets and sells to directly through Oracle’s worldwide sales force and indirectly through the Oracle Partner Network.
Using Oracle technologies, Oracle’s customers build, deploy, run, manage, and support their internal and external products, services, and business operations. For example,
- a global cloud applications developer that utilizes Oracle Cloud Infrastructure (OCI) to power its software-as-a-service (SaaS) offerings;
- a multi-national financial institution that runs its banking applications using the Oracle Exadata Database Machine; and
- a global consumer products company that leverages Oracle Fusion Cloud Enterprise Resource Planning for its accounting processes, consolidation, and financial planning functions.
Oracle’s comprehensive portfolio of applications and infrastructure technologies is designed to address an organization’s IT environment needs, including business process, infrastructure, and application development requirements.
Oracle applications and infrastructure technologies, including database and middleware software as well as enterprise applications, virtualization, clustering, large-scale systems management, and related infrastructure products and services, are the building blocks of Oracle Cloud Services, partners’ cloud services, and customers’ cloud IT environments.
Oracle Applications Technologies
Oracle applications offerings include Oracle Cloud SaaS offerings, which are available for customers as a subscription, and Oracle applications license offerings, which are available for customers to purchase for use within the Oracle Cloud, and other cloud-based and on-premise IT environments and include the option to purchase related license support.
Oracle Cloud Software-as-a-Service (SaaS) : Oracle’s broad spectrum of Oracle Cloud SaaS offerings provides customers with a choice of software applications that are delivered via a cloud-based IT environment that Oracle deploys, manages, upgrades, and supports and that customers purchase by entering into a subscription agreement.
Oracle Applications Licenses : Customers can license Oracle Applications, including Oracle E-Business Suite, PeopleSoft, JD Edwards, and Siebel applications, among others, for use within the Oracle Cloud or their own cloud-based or on-premise IT environments. These licensed applications are designed to manage and automate core business functions across the enterprise, including HCM, ERP, EPM, SCM, Customer Experience, and industry-specific applications, as described above, among others.
Oracle Infrastructure Technologies
Oracle infrastructure technologies are marketed, sold, and delivered through Oracle’s cloud and license business. Oracle’s cloud and license business infrastructure technologies include the Oracle Database, the world’s most popular enterprise database; Java, the computer industry’s most widely-used software development language; and middleware, including development tools.
Oracle’s hardware business infrastructure technologies consist of hardware products and certain unique hardware-related software offerings. They include Oracle Engineered Systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services.
Oracle infrastructure technologies are also marketed, sold, and delivered through its hardware business, including a broad selection of hardware products and related hardware support services to power cloud-based and on-premise IT environments.
How does Oracle make money? What is the business model of Oracle?
Oracle made $42.4 billion in FY22 . Oracle makes money from three segments: cloud and license; hardware; and services; each comprising a single operating segment. Oracle primarily (85%) makes money from its cloud services, providing comprehensive and integrated applications and infrastructure services delivered via cloud-based deployment models.
Cloud and License Business
Cloud and license revenues include the sale of cloud services and license support, and cloud licenses and on-premise licenses, which typically represent perpetual software licenses purchased by customers for use in both cloud and on-premise IT environments. The cloud and license business segment contributed 85% to Oracle’s revenue in FY22.
Oracle Cloud Services integrate the IT components, including software, hardware, and services, on a customer’s behalf in a cloud-based IT environment that Oracle deploys, manages, supports, and upgrades for the customer and that a customer may access utilizing common web browsers via a broad spectrum of devices.
Oracle cloud license and on-premise license deployment offerings include Oracle Applications, Oracle Database, and Oracle Middleware software offerings, among others, which customers deploy using IT infrastructure from the Oracle Cloud or their own cloud-based or on-premise IT environments.
How does Microsoft make money: Business Model & Strategy
Hardware Business
Hardware revenues include the sale of hardware products, including Oracle Engineered Systems, servers, storage products, industry-specific hardware, and hardware support revenues. The Hardware business segment contributed 7% to Oracle’s revenue in FY22.
Hardware business provides a broad selection of enterprise hardware products and hardware-related software products, including Oracle Engineered Systems, servers, storage, industry-specific hardware offerings, operating systems, virtualization, management and other hardware-related software, and related hardware support.
Oracle’s hardware support offerings generally provide customers with software updates for the software components that are essential to the functionality of the hardware products purchased and can also include product repairs, maintenance services, and technical support services.
What does Cisco do: Business model | Products | Competitors
Services Business
In Services, Oracle makes money from providing cloud-, license- and hardware-related services, including consulting and advanced customer services. The services segment contributed 8% to Oracle’s revenue in FY22.
Oracle’s consulting services are designed to help customers deploy, architect, integrate, upgrade, and secure their investments in Oracle applications and infrastructure technologies. Oracle’s advanced customer services are designed to provide supplemental support services, performance services, and higher availability for Oracle products and services.
Hybrid Business Strategy of IBM
Results of Operations
As per Oracle’s FY22 annual report,
A passionate writer and a business enthusiast having 6 years of industry experience in a variety of industries and functions. I just love telling stories and share my learning. Connect with me on LinkedIn. Let's chat...
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New business models, big opportunity: Financial services
The financial services industry is turning to bold initiatives to propel from pandemic response to business growth.
- MIT Technology Review Insights archive page
In association with Oracle
By any measure, 2021 corporate planning isn’t business as usual. As the coronavirus pandemic grinds on, financial services institutions are coming out of crisis mode— addressing immediate cash management and operational challenges—with a renewed readiness for business growth.
Fortunately, most businesses across industries are doing a good job of navigating the pandemic and its economic fallout. According to a survey conducted by MIT Technology Review Insights, in association with Oracle, 80% of executives feel upbeat about their companies’ ultimate objectives for 2021. They’re either expecting to thrive—that is, sell more products and services—or change the way they do business. The worldwide research surveyed 297 executives in more than a dozen industries, primarily finance directors, C-suite, and information technology (IT) leaders. Forty-four, or or 15%, of the execu-tives work at banks or other financial services institutions.

That 15% is a bold bunch—93% of them have over the past year made at least one big business move, overhauling tech infrastructure, for example, or acquiring or merging with another company—and nearly 80% will change the way they do business, by pivoting to new markets or focusing on better customer experiences.

New business models, big opportunity: Financial Services
Download the full report
More motivated than ever, organizations in all industries are ready to cut expenses that lack a clear return on investment. So it’s no surprise that survey respondents highlight computing projects—all highly measurable— as priorities in their 2021 plans. Among financial services institutions, 62% are looking to ramp up tech investments, and another 62% expect to move IT and business functions to the cloud, compared with 46% across industries. In a recent report, Nucleus Research found that cloud deployments deliver four times the return on investment as on-premises deployments do.
Planning beyond the pandemic
The Guardian Life Insurance Company of America is an exemplar of a progressive cloud adopter—it’s now moving many of its core financial systems to the cloud. The insurer was motivated to do so—an internal study had found several opportunities, including insufficient data management, a need for lower-level data for better analytics, a lack of system integration, and manual reconciliation issues. “These pain points helped create the need for a new system,” says Marcel Esqueu, assistant vice president for financial systems transformation at Guardian. “We looked at moving to the cloud about five years ago, but we didn’t think it was ready.” Now the company deems cloud services mature enough to support the advanced functionality it requires.

Financial institutions are also looking at mergers and acquisitions as a path beyond pandemic survival. In fact, according to a Reuters report, such deals were up 80% in July, August, and September 2020 from the previous fiscal quarter to hit a whopping $1 trillion in transactions. In the MIT Technology Review Insights survey, 41% of financial services execs report that their organizations acted on a business merger or acquisition or will do so over the coming year.
“People have realized they need to consolidate to create stronger and better-equipped businesses to deal with what the world looks like going forward,” says Alison Harding-Jones, managing director at Citigroup, in the Reuters report.
Mergers and acquisitions have long been a way for an organization to expand its core business—or even gain expertise in emerging technologies. For example, while many financial institutions buy business software with built-in artificial intelligence (AI) capabilities, Mastercard acquired a Canadian AI platform company called Brighterion in 2017 to provide “mission-critical intelligence from any data source,” says Gautam Aggarwal, regional chief technology officer (CTO) at Mastercard Asia-Pacific. The company first used Brighterion’s technology for fraud detection but now puts it to work in credit scoring, anti-money laundering, and the company’s marketing efforts. “We’ve really taken Brighterion and applied it not just for the payment use case but beyond,” says Aggarwal.

Business change, outside and in
Indeed, organizations have had to innovate and respond fast to survive in the covid economy. In the survey, 81% of organizations across industries have evaluated new business models in 2020 or are planning to launch them over the next year. Among financial services institutions, improving the customer experience is paramount, with 55% reporting that they’re improving the experience they offer their customers, compared with 35% across industries.
That’s true for Jimmy Ng, group chief information officer (CIO) at Singapore-based DBS Bank. When physical branches closed during lockdowns, DBS customers— like other bank patrons the world over—did their banking online. But some of them did so only because they had to. “The question is whether this group of people will continue staying on the digital channel.” So DBS is exploring ways to keep customers who prefer in-person service engaged, exploring technologies such as augmented and virtual reality and the 5G mobile network, which enables superfast connections. “How do we enable a joyful customer journey in this remote way of engagement?”
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Improve profitability and gain unparalleled business insights with Oracle Profitability and Balance Sheet Management Cloud Services

As cloud technology matures, financial institutions are migrating finance, treasury, and compliance functions away from on-premise systems. According to IDC, the worldwide financial applications market is forecast to reach $44.7 billion by 2025, with the cloud portion of that market growing by 13.9% through 2025. In addition, our global modernization of finance survey conducted with IDC revealed that more than half (54%) of finance executives indicated that financial planning and performance software are the most important tools necessary to build modern finance capabilities.
Oracle, a leader in integrated solutions across finance, treasury, and financial planning and analysis, has launched its Profitability and Balance Sheet Management Cloud Service suite. It includes multi-dimensional profitability management, profitability analytics, funds transfer pricing (FTP), asset liability management (ALM), balance sheet planning and optimization, and a stand-alone account-level cash flow engine service. These cloud-native SaaS services provide the necessary tools to assist financial institutions in measuring and meeting risk-adjusted performance objectives and price products to reflect their actual risk. They also help financial institutions better understand how their institutions are impacted by threats to changes in interest rates, liquidity, capital adequacy, and exposure to market rate volatility.
Benefit from your move to Oracle Cloud
Benefit from the same comprehensive profitability and balance sheet management capabilities you use today, plus realize the advantages of running cloud-native, true SaaS services on Oracle’s highly secure cloud infrastructure . Moving your on-premise applications to the Cloud lowers your total cost of ownership, increases your agility, and improves your productivity.
Performance
- Increased flexibility and reliability when you run your applications on the Oracle Cloud
- High performance at a lower cost versus deployments running on-premises or other cloud infrastructures
- Shared infrastructure that empowers your entire business to run faster and scale up (or down) to meet peak compute demands with ease
- Enterprise-grade security at every level of the stack, ensuring user isolation, and data encryption at every stage of the life cycle
- Fine-grained security controls, compliance, and visibility through comprehensive log data and monitoring solutions
Cost savings
- Hardware cost savings, increased business flexibility, and greater efficiencies in the short- and long-term
Profitability management
Address profitability challenges in today’s dynamic business environment, with inherent volatility, rising interest rates, and changing customer behavior with Oracle’s Profitability Management Cloud Service. It provides robust and highly scalable cost allocation functionality and multi-dimensional profitability analytics and reporting to understand the true drivers of profit and risk in your portfolio.
- Develop and analyze full P&Ls at any level of detail using custom allocation logic to manage the allocation of costs and fees efficiently
- Improve operations with reporting to help you understand the data and results, monitor processing, and ensure timely and accurate results
- Accurately assess profitability across multiple dimensions, identify and track trends and cost structures of the most profitable customers, products, organizational units, and lines of business
- Easily identify trends and opportunities and enhance decision-making with Oracle Analytics and Data Visualizations
Funds transfer pricing
Understand what drives enterprise performance and determine the spread earned on assets and liabilities by utilizing industry-leading transfer pricing methods with Oracle’s Funds Transfer Pricing Cloud Service. It accurately assesses profitability along the customer, product, channel, and business lines and centralizes interest rate risk for effective management.
- Accurately price the cost of funds by assigning multiple FTP rates comprised of base and add-on rates
- Understand your actual exposure to interest rate risk when calculating funding charges and credits for each account record for each component FTP rate and posting offset entries to your funding center
- Identify break events and calculate their actual economic gains and losses, incenting lines of business to recoup costs and increase revenue
Asset liability management
Address increasing regulations requiring multiple techniques to measure exposure to liquidity and interest rate risk accurately. Oracle’s Asset Liability Management Cloud Service offers an accurate view of profitability, earnings stability, and overall balance sheet risk exposure. It provides an integrated framework for high-end ALM analytics, dynamic interactive dashboards, intuitive reporting, alerts, and scenario-based what-if analysis.
- Accurately model any financial instrument in any currency down to the account level via a high-performance, scalable, standard cash flow engine
- Calculate market values, incomes, equity, and capital as well as liquidity levels, trends, and ratios in a variety of scenarios
- Forecast the future using full income simulation with profitability, including FTP forecasting and combine income simulation with interest rate gap and liquidity in a single forecasting concept
Cash flow engine
In recent years, the usage of cash flow projections has expanded across risk and balance sheet management teams—a trend largely attributed to evolving regulations and increased interaction among risk and finance functions. Oracle’s Cash Flow Engine Cloud Service is a stand-alone service that calculates daily cash flows using daily forecasted interest rates at the individual account level. This enables deeper analysis, supporting a variety of use cases, including liquidity, stress scenarios, and many others.
- Generate account-level cash flows using unique payment and repricing characteristics
- Produce daily cash flows using daily forecasted interest rates at the individual account level
- Improve insight into branch liquidity and cash on hand
- Create an analytics-driven strategy to help chase late payers promptly and regularly
Balance sheet planning and optimization
Current market dynamics make it even harder to forecast future performance accurately while assuming forward-looking risk. With Oracle’s Balance Sheet Planning and Optimization Cloud Service, financial institutions can gain a complete picture of balances and spreads, including a wealth of related cash flow information for each budgeting and reporting period, such as:
- Accurately plan net interest margin incorporating cash flow processing and FTP for current and new books of business
- Capture forecasts from planning analysts using pre-built planning forms and business rules
- Access integrated historical performance metrics, including net interest margin, risk-adjusted return, spread from transfer rates, allocated costs, and capital
A trusted leader in integrated technology and cloud
For over 30 years, Oracle has set the standard in the financial services industry for running integrated analytical applications across finance, risk, treasury, FP&A, and compliance. Our new Profitability and Balance Sheet Management Cloud Services suite can help financial institutions to achieve management excellence in delivering deeper business insights with a lower total cost of ownership. Oracle’s cloud-native SaaS architecture combines performance and balance sheet management applications into a single, seamlessly integrated framework.
Message me or my colleague Chris Spofford , to learn how you can move your financial analytic processes to the Cloud.
Yogendra Singh
Vice president, head of risk and finance solution consulting, oracle financial services, chris spofford, senior director, risk and finance product strategy.
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Oracle Financial Services Documentation
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Companies using Oracle Financial Services
We have data on 522 companies that use Oracle Financial Services. The companies using Oracle Financial Services are most often found in United States and in the Information Technology and Services industry. Oracle Financial Services is most often used by companies with >10000 employees and >1000M dollars in revenue. Our data for Oracle Financial Services usage goes back as far as 8 years.
If you’re interested in the companies that use Oracle Financial Services, you may want to check out CoreCard Software and Misys as well.
Who uses Oracle Financial Services?
Target oracle financial services customers to accomplish your sales and marketing goals., oracle financial services market share and competitors in banking & finance.
We use the best indexing techniques combined with advanced data science to monitor the market share of over 15,000 technology products, including Banking & Finance. By scanning billions of public documents, we are able to collect deep insights on every company, with over 100 data fields per company at an average. In the Banking & Finance category, Oracle Financial Services has a market share of about 1.5%. Other major and competing products in this category include:

What is Oracle Financial Services?
Oracle Financial Services Software Limited is a subsidiary of Oracle Corporation. It is an IT solution provider to the banking industry. Oracle Financial Services Software Limited has two main streams of business. The products division and PrimeSourcing. The company's offerings cover retail, corporate and investment banking, funds, cash management, trade, treasury, payments, lending, private wealth management, asset management and business analytics.
Top Industries that use Oracle Financial Services
Looking at Oracle Financial Services customers by industry, we find that Information Technology and Services (24%), Banking (23%), Financial Services (14%) and Computer Software (7%) are the largest segments.

Top Countries that use Oracle Financial Services
48% of Oracle Financial Services customers are in United States , 12% are in India and 6% are in United Kingdom .

Distribution of companies that use Oracle Financial Services based on company size (Employees)
Of all the customers that are using Oracle Financial Services, a majority (62%) are large (>1000 employees), 10% are small (<50 employees) and 28% are medium-sized.

Distribution of companies that use Oracle Financial Services based on company size (Revenue)
Of all the customers that are using Oracle Financial Services, a majority (60%) are large (>$1000M), 23% are small (<$50M) and 12% are medium-sized.

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IMAGES
COMMENTS
BACKGROUND Banking is experiencing a period of business model innovation brought on by the emergence of new market entrants moving the ball forward on customer expectations. In Celent's financial institution (FI) surveys conducted in 2017 and 2019, banks consistently rank "improving customer experience" as the top strategic priority.
Watch on What does Oracle do? Oracle provides products and services that address enterprise information technology (IT) environments. Oracle's products and services include enterprise applications and infrastructure offerings that are delivered worldwide through a variety of flexible and interoperable IT deployment models.
Oracle Financial Services Software Limited ( OFSS) is a subsidiary of Oracle Corporation. It is involved in financial and insurance technology. The company claims to have more than 900 customers in over 145 countries. [4]
Explore Banking Redefine satisfaction for members and policyholders Quickly develop and deliver new insurance products, grow enrollment, and simplify claims processing. Explore Insurance Solutions Close the loop with real-time payments Process payments in real time, anywhere, and at scale with a certified SWIFT-compatible application.
62% of financial services leaders surveyed planned to increase their tech investments and move IT functions to the cloud in 2021. Source: MIT Technology Review, "2021 planning New business models, big opportunity," November Table of contents pg 4 The six most influential forces shaping pg 7 Oracle Finance Modernization for banking pg 9
You can access this website to find additional information about how Oracle Financial Services solves real business problems. After visiting the OHC page, press Alt+Left Arrow to return to this document.
Oracle Financial Services Model Management and Governance comes with a robust sandbox management capability to help customers iterate models with production datasets and filter the most relevant model for deployment. These capabilities are outlined below.
Among financial services institutions, 62% are looking to ramp up tech investments, and another 62% expect to move IT and business functions to the cloud, compared with 46% across industries.
Oracle Financial Services Profitability Management Cloud Service's flexible, multi- dimensional data model enables the calculation of profitability across multiple dimensions, including product, customer, account, channel, business unit, geography, relationship manager, and line of business.
2.3 About Oracle Financial Services Model Management and Governance ... deterministic business logic. 2.4 Oracle Financial Services Model Management and Governance Workflow The workflow involves the creation of Sandboxes and the creation of Models mapped to the Sandboxes. Models are then configured as training models that you can use to perform ...
BaaS represents a new business model for banks, which their technology must evolve to support the new requirements. Banking as a Service (BaaS) is an innovative model that enables non-financial companies (NFC) to offer banking services without owning a license or banking infrastructure.
The consumerization of everything has set high expectations for the financial services industry. And these expectations are difficult, some say virtually impossible, to satisfy given the technical debt and innovation inertia amassed over decades. Srinivas Thummalapalli shares the eight core elements of a successful platform architecture.
Oracle Financial Services Applications and OCI—Unmatched strength, performance, and resiliency ... Oracle's banking products have offered unique propositions that have helped clients achieve their technical and business goals. As banks learn that SaaS is more than only a delivery model, they are also realizing the benefits that an industry ...
The Oracle business model is focused on selling its software, cloud services, and hardware products to businesses and organizations. The company operates under a mixed business model, combining elements of subscription-based and traditional sales-based business models. At the core of Oracle's business model is its customer segmentation strategy.
While banks have invested significantly in digitization and automation across financial services, their core business model has remained the same. The challenges presented by current economic realities, compounded by the impact of COVID, means new dynamic approaches will be critical to future improvements. Oracle shares how embedded finance could offer an opportunity for the prepared bank.
Oracle Financial Services' data model, the foundation for Oracle Financial Services Asset Liability Management Cloud Service, provides a common repository for capturing the true financial characteristics of each customer relationship, which, in turn, drives the modeling and behavior of these relationships.
Oracle Financial Services Enterprise Modeling is built specifically to meet many of the needs of large Financial Institutions where external regulatory and internal governance policies. Models may only be built and tested in a Sandbox Environment.
With 5G, the interconnectedness growth is many-folds - bringing greater efficiency across the industry and influencing technology investments. A recent survey conducted by Oracle and MIT Technology Review revealed that 62% of financial services respondents have increased tech investments to boost business. As a complex, demanding, and highly ...
Purpose. This document includes links to Oracle Fusion Business Process Models for each of the defined business process areas. These models depict Oracle's interpretation of the business processes and are not intended to reflect any given customer's Oracle product implementation or actual business processes.
4. Cash flow monitoring. Cash flow monitoring helps ensure that a business has enough liquid assets to meet short-term financial obligations, such as paying salaries, suppliers, loans, and rent. One of the biggest challenges to managing cash flow is transparency into liquidity factors.
Oracle has launched its Profitability and Balance Sheet Management Cloud Service suite with a cloud-native SaaS architecture. Its capabilities can help financial institutions gain deeper business insights into measuring risk-adjusted performance objectives and price products to reflect their actual risk and improve profitability.
Description. F24955-01. View Library. Download (34 MB) Documentation Library for Oracle Revenue Management and Billing Cloud Services Release 7. F32139-01. View Library. Download (36.3 MB) Documentation Library for Oracle Revenue Management and Billing Cloud Services Release 8.
Oracle Financial Services Software Limited is a subsidiary of Oracle Corporation. It is an IT solution provider to the banking industry. Oracle Financial Services Software Limited has two main streams of business. The products division and PrimeSourcing. The company's offerings cover retail, corporate and investment banking, funds, cash ...
Financial Services Data Model Reference Guide, Volume 1: Business Data; Financial Services Data Model Reference Guide, Volume 2: Oracle Financial Services Data; Following are the common documents released for OFSFCCM Release 6.2.2: Readme_6.2.2.0.0BD (Notepad 12.3kb. Last Update: December-2013) Readme_6.2.2.0.0UI (Notepad 12.3kb.