'Tremendous' Growth Ahead for Oracle: Hurd

Monday, 1 Oct 2012 | 5:15 PM ET

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."

Getty Images

“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.

Mark Hurd: Oracle Doing Well & Gaining Share
Mark Hurd, president of Oracle, speaks to CNBC's Maria Bartiromo about Larry Ellison, Oracle stock and potential acquisitions.

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.

  Price   Change %Change


Contact Technology


    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.