Oracle has apparently decided to stop pretending that licensed software sales is the future. Word on the wire (and I’ve heard this independently from an industry contact as well) is that the company has been mulling to go all subscription sales over the next two years.
Oracle (ORCL) plans to phase out license sales in the next 18-36 months, First Albany says in a note citing “industry contacts.” License sales, which reflects new business, has always been a key figure for software companies, but ORCL has recently been encouraging analysts to take a closer look at the more stable maintenance streams.
[Update] Oracle’s already trying to downplay this notion, with analyst Rick Sherlund at Goldman Sachs out with a note saying management says it’s not imminent. Maybe, but I still think Larry looks covetously at the life subscription model.