Will Oracle’s Recent Foray Into Cloud Raise Its Value?
Cloud computing is being hailed as the next evolutionary step for computing. The advent of it is accompanied with some cataclysmic changes that are sure to alter the way we perceive computing. For starters, a growing trend is that more and more customers are opting out of on-premises solutions to cloud based and open platforms. All the key players in the IT sector have already jumped aboard the cloud computing bandwagon and have made their presence felt in the cloud domain. Oracle cooperation and Hewlett Packard have been lagging in this regard, but they too have now realized the gravity of the situation and are venturing into the cloud domain.
Oracle Corporation’s last quarter profit margin was way below expectations. The unexpected decline was due to less demand for its hardware and license renewals. To counter this downward spiral, the company has proactively started investing in cloud platform and recently acquired a cloud based organization just for this purpose. During its recent earning estimation conference, the president of the company Mark Hurd declared that Oracle has added an impressive 500 new customers to its cloud portfolio. This foray into cloud will boost the company’s revenue substantially for the coming fiscal quarter.
Oracle is really taking its venture into cloud pretty seriously as procuring a space in cloud hasn’t been deemed enough. The company is nurturing ties with other already established stakeholders in the cloud universe. Oracle recently decided to bury the proverbial “hatchet” and forged an alliance with long time rival Microsoft. This will enable Oracle to pitch their products inside Microsoft’s cloud infrastructure. This strategy will yield results for Oracle in form of increase in its software license sales in the coming quarter. Another noteworthy alliance was forged with the world famous CRM solutions provider salesforce.com. This is going to be a symbiotic relationship as the clientele of both the companies stand to gain from it. Both the companies would be able to offer their products in tandem to the customers. These strategically woven alliances will enable Oracle to not only cover its losses but also boost its software and hardware sales.
With cloud and mobile technologies being the rage these days, it’s easy to predict that demand for software and hardware licenses will decline. The customers are opting for cloud based applications and servers and totally circumventing cost that otherwise would be incurred installing hardware and software at their premises. This provides a lot of wiggle room in the budget for the customers, which can be utilize to further their business horizons and designs. This trend is going to gain momentum in the coming years. Witnessing this trend, Oracle Corporation’s decision to venture into cloud domain is perfectly plausible. With its lineup of impressive software and hardware offerings it’s believed that Oracle will be able to carve out a nice share of the market in cloud computing domain for itself. Will this increase company’s overall worth? Definitely!!