This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Computing World Moves Away From Oracle

NEW YORK (TheStreet) -- For investors, the worst news can be news you don't hear.

Oracle (ORCL) made that kind of news Wednesday, missing analyst revenue estimates for the fifth time in 10 quarters.

It's getting to be a habit. It's getting to be such a habit it's not news anymore. When it's not news anymore investors may not hear that it's time to get out.

It's time to get out.

Oracle was the last company standing in the old client-server era. It bought Sun Microsystems, and it bought most of its competitors in the database space. The rest it seemed to crush. When CEO Larry Ellison hired Mark Hurd as co-president in 2010, it seemed he could put his full attention on transforming, and defending, sailing's America's Cup, which has become his passion.

That didn't work out so well either. Despite transforming the rules and moving the races onto San Francisco Bay, it looks like rival Emirates Team New Zealand is going to take the prize away, perhaps as early as today, as the America's Cup Web site reports.

What went wrong? For Oracle, technology changed. Cloud computing -- masses of low-cost servers using virtual operating systems -- have proven themselves far more cost-effective than the architectures Oracle made its living on.

It's not so much the "cloud stack" as the result of building such a stack that's the problem for Oracle. When software becomes a service, when you can replace your whole IT department with something you buy like you buy electric power, and at a low, low price, that's compelling.

The company sells an "Oracle Cloud," based on its proprietary hardware and software, but many analysts have been calling that "faux cloud" since it doesn't deliver the full savings of cloud to customers, and I agree.

Oracle has long been known for having an iron grip on its customers, making the costs of switching away from its architecture appear prohibitive. But you don't have to switch to make an impact on Oracle's numbers. Just slow your upgrades, experiment with cloud, and don't grow your Oracle stack -- that's enough.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs