This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Oracle's Ellison Issues Cloud Challenge

Stocks in this article: ORCLJAVA

REDWOOD SHORES, Calif. ( TheStreet -- Oracle (ORCL) CEO Larry Ellison plans to wield cloud computing as a cudgel against its rivals once the database giant completes its Sun Microsystems (JAVA) acquisition.

With the E.U. looking increasingly likely to approve the $7.4 billion purchase, Oracle struck a bullish tone during the conference call to discuss its second-quarter results late on Thursday.

Oracle expects "full and unconditional clearance" from the European Commission in January, despite regulators' initial skepticism about the deal's antitrust implications.

With the Sun deal now seemingly inevitable, Ellison outlined his plans for his latest acquisition. The combined Oracle/Sun will offer high end, high performance machines capable of supporting firms' cloud computing efforts, he said.

Cloud services, which offer compute power and storage via the Internet or a secure network, are fast becoming one of the tech sector's hottest technologies. A growing number of companies are pushing cloud services as a way for firms to avoid the upfront costs of hardware and software.

Ellison explained that the combined Oracle/Sun contains all the requisite components for cloud computing, from servers, storage and networking through to database software and operating systems.

By offering these myriad technologies in a tightly integrated package, the fiery Oracle chief is confident of gaining market share against rivals Dell (DELL), IBM (IBM), and Hewlett-Packard (HPQ).

"We think that will heavily differentiate our offering with the offerings of IBM, HP and Dell," added the CEO. "We think we can compete very effectively there and that will deliver high margins and allow us to deliver that $1.5 billion of additional profit in our first full year of having Sun."

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 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

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