Shares were gaining 1.77% against the tech-heavy Nasdaq's flat to lower trading action for much of the day.
The company hosted cloud-focused events from both coasts of the U.S. on Tuesday. The Oracle Cloud Forum Meeting took place at the company's headquarters in Redwood Shores, Redwood City, Calif. The company also unveiled Oracle Solaris 11.2 in New York, which Oracle describes as the "complete, integrated and open platform" engineered for large-scale enterprise cloud environments. Solaris 11.2 combines OpenStack, SDN technology, clustering and virtualization with a proven enterprise-class OS, all in a single product, the company revealed.
John Fowler, Oracle's executive vice president of Systems told TheStreet on the sidelines of the Solaris 11.2 unveiling that Solaris 11.2 is an example of how Oracle is providing best-of-breed, differentiated cloud capabilities. The company wants to show the market that it stands apart from the numerous cloud services providers that have yet to turn a profit.
"There are people who are delivering cloud services which we also do," said Fowler. "But with Solaris, you get a very mature technology to deliver cloud services. And what most of the cloud companies have done is they've struggled with writing software and managing their systems -- that gives them high costs. So this is the opportunity for customers to get a very mature cloud delivery technology. And that's what we will use ourselves to deliver our cloud services. Technology like this -- lowers our cost."During Oracle's last earnings report, the company showed over 60% growth in its cloud business, demonstrating that company does indeed "get" the cloud. "We are a big, capable company, so we are delivering both on the product side as well as over in cloud services," Fowler continued. "People will see this announcement as a very serious commitment to delivering both product and cloud, and so it's very relevant." White, who attended Oracle's Cloud Forum Meeting, said he's confident of further margin expansion from Oracle as the company continues to ramp the roughly $1 billion business at the Engineered Systems part of the hardware division and jumps into the higher-margin buckets of the cloud industry. "They're saying, 'OK, fine,'" the managing director and global head of technology hardware and software at Cantor said to TheStreet. "'Yeah we'll match them [the components of the pricing wars in IaaS], but that isn't the core of what we're doing though.'" Although Oracle previously indicated that it will match the aggressive pricing from competitors in certain parts of the IaaS cloud layer, the company made it very clear during the Cloud Forum that it is focused on offering high value-added offerings related to software and is not interested in just running data centers. White says that Oracle is offering a broad platform of cloud services that include SaaS, PaaS, and IaaS, and the company is doing an excellent job of integrating its products.