Oracle (NYSE:ORCL) reported significant growth in its cloud business segment for the most recent quarter.

In this clip from the Motley Fool Money podcast, Simon Erickson joins Chris Hill to explain how Oracle and (NYSE:CRM) have piggybacked off of each other in the past, and where that relationship has gotten Oracle today. Of course, the two companies are not entirely allies, but they are not working against each other completely, either.

A full transcript follows the video.

This podcast was recorded on March 18, 2016. 

Chris Hill: Oracle's third-quarter profits came in slightly lower than a year ago, but revenue from the cloud business is up pretty big, Simon.

Simon Erickson: Yeah, and Chris, let's talk about Oracle and Salesforce being frenemies over the years (laughs). Salesforce built their entire infrastructure on Oracle's database, but in exchange for that, Oracle learned a thing or two from them about CRM software and cloud-based stuff like this.

So, now Oracle's the one that's crushing. They saw over 40% growth in their cloud-based revenue, gross margins popped from 43% to 52% in one quarter, and now they've got $1.5 billion in recurring revenue from customers from the cloud. So, I think that Oracle came out better from this and has learned a couple things from Salesforce over the last 16, 17 years.

Chris Hill has no position in any stocks mentioned. Simon Erickson has no position in any stocks mentioned. The Motley Fool owns shares of and recommends The Motley Fool owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.