Software license/cloud subscription sales are expected to post 1%-11% growth in FQ3 after declining 1% in FQ2. Hardware product sales growth is expected to be in a range of -2% to +8%, better than FQ2's -3%.
Oracle also notes its costly/high-margin engineered systems (Exadata, Exalytics, etc.) now account for 30% of hardware product revenue. Oracle needs engineered systems sales growth to remain healthy to offset slumping sales of traditional SPARC/UNIX systems.