I’ve been tracking the “Demise of the traditional software market” for some time now. One more data point from Oracle today.

Second quarter total revenues were up 28% to $5.3 billion, while quarterly net income was up 35% to $1.3 billion.

“In Q1 we reported new software license revenues up 35%, the strongest growth of any quarter in ten years,” said Oracle President and CFO, Safra Catz.

Yes, 35% growth on a few billion dollar base (give or take a few hundred million)…not shabby. Now, before you think, “that’s just acquisition related revenue growth”, keep in mind that new license growth for database and middleware software grew by 28%. The applications business, which would be impacted by Oracle’s acquisitions, grew by 63%.

Oracle didn’t mention anything about Unbreakable Linux during the earnings release conference call. What’s more, no analysts asked about Unbreakable Linux or competition from OSS. The analysts were too busy congratulating Oracle on the quarter.