Oracle’s Support Revenue Is Its Key Driver

Posted on July 25, 2006
Filed Under Companies |

Timely post considering what I wrote this morning about software licenses going to zero.

Oracle’s Support Revenue Is Its Key Driver - SeekingAlpha: Even if license revenue growth was flat, software license updates and product support revenues would continue to grow assuming renewal and cancellation rates remained relatively constant since substantially all new software license transactions add to the support contract base. Substantially all of our customers, including customers from acquired companies, renew their support contracts when eligible for renewal. When support contract renewals are negotiated, inflationary price increases are assessed, where applicable.

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