Oracle's first-quarter earnings report showed that corporations will spend on technology if it can help them cut costs and improve performance, Mark Hurd, president of the software giant, told CNBC’s "Closing Bell."
“People will spend money if there’s a good return on investment," the Oracle executive said Monday. “I think that’s an indication of what we saw in our results.”
Customers are on an austerity plan and an innovation agenda at the same time to free up money to invest, Hurd said.
During the quarter, Oracle expanded its software business 11 percent, with double-digit increases in Asia and the U.S. and strong growth in its pipeline, Hurd said. (Read More:Oracle Meets Earnings Forecast, but Revenue Is Light.)
But these strong results may not be indicative of any rebound in the underlying economy. “We feel great about our product line. We’ve expanded our distribution over the course of the past 18 months," Hurd said. "So this may not be a read-through on the entire economy.” He also noted that Oracle is gaining share.
The company is positioning itself to take advantage of the massive proliferation in data and the increase in cloud computing by helping clients better manage tight IT budgets.
Hurd said that with data growing 40 percent to 45 percent at clients and the storage costs associated with it, IT budgets can grow 2 percent to 3 percent just chasing after the increase in data. By compressing data and consolidating infrastructure, Oracle can help customers dramatically lower their cost structures, Hurd said.
“This is a tremendous opportunity for our customers and for us,” Hurd said.
As a result, Oracle sees “tremendous” growth coming from both its cloud computingand IT infrastructure solutions. While Hurd wouldn’t give a specific growth target for the company, he said “whatever the market performs, we’re going to perform better than the market.”
Hurd took over at Oracle in September 2010, a month after leaving Hewlett-Packard stemming fom a sexual harassment claim by a consultant. An internal investigation found no sexual harassment but said Hurd had violated the company's standards of business conduct.