Bangalore:  Oracle’s Q2, has met with an increased revenue of $8.8 billion, and the conglomerate’s net sales have climbed by around 17 percent. But this comprises of a loss in the hardware sector by 14 percent ($953million) and the hike in software sales of 9 percent ($4billion).

Rick Sherlund, an analyst at Nomura Holdings said that this might be the result of sluggish economic growth in the U.S, and Europe coming to terms with a possible recession next year. The purchase of new software licenses, which is an indicator of business-software companys growth, perked by less than Sherlund’s prediction, and hardware that was acquired via the acquisition of Sun Microsystems dropped by more than projected.

 The slower demand for software licenses, databases, applications and hardware might mean that various companies and government agencies have already started treading economic grounds more carefully, as suggested by Oracle’s earning statement.

Sales resurfaced with this issue, according to Safra A. Catz, Oracle’s President and Chief Financial Officer, mainly because clients’ technology decision-makers delayed signing contracts in the last few days of the quarter. “Clearly, this quarter was not what we thought it would be”, she said, addressing analysts in a conference call on Tuesday.

However, "Sales of our engineered systems accelerated in Q2”, said Oracle CEO Larry Ellison. "Exadata growth was well over 100 percent compared to last year, and Exalogic grew more than 100 percent on a sequential basis. We shipped our first SPARC SuperCluster in Q2 and expect to begin deliveries of our Exalytics system and the Oracle Big Data Appliance in Q3."

Catz expressed the company’s hopes to complete some of the deals (that were postponed in the last quarter), within the next two months.