Sun reported very healthy revenue growth for its Software category in Q209. Chart 6 in this deck suggests that Software Billings grew at 21%. To non-accountants, Revenue != Billings. In Q209, ~$1 Billed = ~$0.9 Revenue. Read the notes on chart 6 for more details if you’re interested.
Diving further into the Billing data, we find that Q209 Software billings were driven by strength in Sun’s Java licensing and MySQL/Infrastructure business lines growing 47% and 55% to $67M and $81M respectively.
The growth in Java licensing seems to be an anomaly compared the historical rates. Typically, this category grew at <10% with 3 quarters of growth between 10% & 20% over the past 9 quarters, and no quarter over 21% growth until now. Clearly, this is a result of Sun’s work to monetize the Java runtime install base. It remains to be seen if this level of growth can continue each quarter.
MySQL growth is solid, although it too is down from a 111% YTY growth in Q109; but really, who’s complaining about a 55% YTY growth in billings!?! MySQL definitely seems to be finding its groove inside of Sun.
And finally, the troubled child, “Solaris, Management and Virtualization”. The category declined 29% YTY to $42M, after a 14% YTY decline in the previous quarter (Q109). What gives? Is Solaris the key driver behind this decline? It would make sense compared to the ~25% declines in Systems quarterly billings.
Overall, the Software category at 21% vs. 27% YTY in Q209 vs. Q109. A slight quarter to quarter decline, but completely understandable in this economic environment! Keep up the momentum guys/gals.