Oracle CEO touts demand for cloud business after stock tumbled

In an interview with CNBC’s Jim Cramer, Oracle CEO Safra Catz, expounded on the enterprise software company’s cloud business, and noted that the company is booking billion-dollar deals.

“For us, we have so much demand that we just keep booking it,” Catz said. “In fact, in the first week of this quarter, we booked another billion and a half just in AI workloads, and we keep winning every single competition against others because our system’s so much newer. We have access to the chips and so, because it’s so much newer. It is much faster.”

Oracle saw its stock plummet 12%, its steepest drop since 2002, after it reported first quarter earnings last week and gave weaker-than-expected guidance for its second quarter.

The company recently announced it would be putting its database hardware inside the data centers of Microsoft‘s cloud unit Azure. Catz explained that Oracle spent much of last year setting up the basics for its cloud business, and is now starting to fill data centers with software that she said is newer and more effective than the competition.

“In the cloud, time is money,” she said. “We’re just rolling out and filling those data centers and, costs a lot. But remember, we build our own computers. We’ve got everything optimized, and it’s much, much faster.”

Catz also said Oracle’s acquisition of Cerner, an electronic health record software company, will create payoffs down the line. During a recent conference call with analysts, Catz said the “accelerated transition” of Cerner to the cloud was causing some “near-term headwinds” to revenue.

“We don’t recognize a lot of that revenue upfront, but over time, that’s where the big payoff is,” she said. “Remember, we didn’t want to leave Cerner just as it was. We wanted to modernize it, and we’re doing that with all of the technology that we have to do it.”

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