ORCL
#Sure, so of course, you have to remember we're going from Q4 to Q1, so our Q1 new license is our seasonally lowest one anyway, okay.
Now as you know, our focus is now on cloud.
And so as new license becomes a smaller number, especially in Q1, it means that it does not ---+ that the support base does not grow as much.
There's also a little bit of currency, but you should ignore that, so that's the first thing.
Now, I know you're probably worried that all of the sudden support is going to go negative, the base is going to go negative.
We don't foresee that happening, okay, because the base is continuing to grow even though new license amount is not growing year over year as much or is actually shrinking, as more of our customers pivot to the cloud, we still sell new licenses, which means the base does continue to grow and it grew 3% year over year.
So that's, I think ---+ I don't know, you had a few parts to your question, but that's really what's going on here.
We don't ---+ yes, that's it.
Yes, yes, yes, it is.
Absolutely.
Absolutely, and I do want to say one more time again, and also <UNK> mentioned it, our retention rates, our renewal rates in our support business remain very, very high.
So, in fact, they're a little bit higher this quarter than another quarter.
It's all within a band; they're very high, they remain that way.
Sure, so first, you really should take direction from what's going on in our gross profit line for the most strategic part of our business, which is moving to the cloud, and software, and software as a service.
And that is going to be very much followed up.
One of the things we do have that is costing us is that our hardware business outside of our engineered systems is getting smaller, and the expense line has not adjusted equally.
As you can imagine, you know us pretty well, that's something that is very straightforward for us to finish out during the year, and that is our expectation.
In addition, you also talked or you may have mentioned currency and tax and things like that.
So obviously, currency is something I can't project and I think after the Brexit vote, I'm pretty sure nobody else has projected it correctly either.
So but the way it affects us, just so that you know, is that the US at Oracle is ahead of Europe in our move to the cloud and outside of the United States; however, as <UNK> mentioned, the bookings are very, very high.
So bookings that were booked in the United States over the past year are turning into revenue already in the United States.
Since the number is smaller in Europe, the bookings, the revenue numbers are smaller, the bookings are approaching those of the United States, and those are going to start flowing through revenue.
That will, in fact, impact our tax rate and readjust it back to the lower rates that you may had be used to.
So that's going to take a little while and that should go through.
In addition, as you know, we do have some significant borrowings, and as a result, we have a very large amount of cash on our balance sheet right now, which is not earning very high results.
We are looking forward to closing the NetSuite deal, which we believe to be accretive and that will also be helpful.
I'd add just one less thing.
Exadata as a service has been a very strong PaaS offering, so we count Exadata as a service, meaning you can now get Exadata in the cloud, as you can get it on-premise.
And our Exadata-as-a-service offering has been a strong PaaS offering.
So when ---+ we actually don't even add that into the engineered systems numbers that <UNK> described earlier, and that's really the strength and popularity of Exadata.
We also have a pretty good sized business now [built] in PaaS, which is a cloud integration services business inside our platform as well.
So everything <UNK>, said all of the [dev-tev] stuff, the supplementing of our SaaS offerings, Exadata, and the data integration services are at the core of our most popular PaaS offering.
The answer to your last question is no, and the answer to your first question is faster than I would have thought two or three years ago.
So some of the names I wrote ---+ I read earlier are scaled companies.
When you see somebody like a Tesco moving, when you see an HSBC moving, when you see some of these brands, and we have all types of brands in our list of ERP customers, ranging from GE and others, as I've described, to newer companies like Lyft and others that are newer, hot, mid-market companies that may have not even had a set of financials before.
And it's really all of the above.
And I think the thing we get excited about, it's the reason we talk about Workday probably as much as we do, is we see them at least with a SaaS offering.
Our core on-prem competitor historically hasn't really done anything.
So when they try to ---+when you look at their base, as their base begins to lock for some of the benefits that our base now has the opportunity to take advantage of, we think there's a possibility for a relatively sizeable market share shift over the years as we move forward.
So I ---+ <UNK>, I do think you're going to see tire kicking, and you see it now of many scaled companies that are the biggest companies in the world.
And you see a few of them showing up on our list of recorded wins.
Okay.
Can we move to close the call please.
But before we do that let though, me just finish up with the last couple of comments.
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