Catz was arguing that Oracle's maintenance contracts would continue to strengthen Oracle's financial performance through an economic downturn.
“We get to keep virtually all of that money,” said Oracle Co-President Safra Catz. Sure, some of that goes to customer service, but Catz said that mostly customers are paying for access to the new software – and Oracle is going to develop that new software regardless of whether customers pay them maintenance fees. For Oracle, maintenance is pretty much free money, about $10.5 billion worth in its 2008 fiscal and about $1.5 billion more than that this year. “When many customers just send you money for something you’re doing anyway, you literally can’t help [but increase profits],” said Catz.Ben Worthen at the Wall Street Journal has the whole story.
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