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 Makes Music While HP Burns

Stocks in this article: HPQORCL

NEW YORK ( TheStreet) -- Big technology buyers don't wait for vendors to get their acts together. They change vendors.

After a year on the job for CEO Meg Whitman, Hewlett-Packard (HPQ) announced this week that internal and economic turmoil would delay a turnaround until at least 2014, as Philly.com reported.

For investors, it means another year of divestitures, firings and cost savings used to maintain a shrinking bottom line. Product lines will be pared, as Gigaom reports . Cadillac brands will be put on Chevy Vegas, as Digital Trends notes.

While cloud computing is making big servers obsolete, HP is going to be making higher-priced ones, as Seeking Alpha reports. . The internal civil war will continue, with Whitman purging her political opponents.

But this isn't General Motors (GM). This isn't 1975. This is technology, which in 2012 evolves in Internet time. If you can't give me a sense of direction, buyers figure, they will go somewhere else.

Increasingly, that somewhere else is Oracle (ORCL), where former HP CEO Mark Hurd now reigns as co-president and CEO in waiting. He was at the company's OracleWorld show this week with what he told ZDNet is a "holistic" strategy aimed at evolving enterprises toward cloud computing.

Like HP, Oracle wasn't ready for the cloud. Like HP, Oracle makes its money in what is called "enterprise computing," selling expensive servers and proprietary software.

But unlike HP, Oracle has a way, it says, to get its customers across the gap between today and tomorrow.

Information Week reports that Oracle's "Simplify IT" plan uses Oracle's Op Center 12 software to deliver virtualization and savings to existing data centers, without jettisoning any existing enterprise applications.

Oracle Exadata and Exalogic hardware may be more expensive than commodity cloud servers, but they run the applications enterprise customers know, Oracle applications, and customers will be encouraged to call them a "private cloud."

As to real cloud applications like those of Salesforce.com (CRM) Oracle is spreading Fear, Uncertainty and Doubt, a potent brew if used sparingly to fill small gaps between promises and reality. Hurd is also promising what ITWeb describes as a "social media suite" that will maintain central control over employees' social computing activities.

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 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

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