This Day On The Street
Continue to site
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

Larry Ellison Wants to Make Oracle King of the Cloud

But for these shares to continue their uptrend management has to convince investors Oracle's enterprise position is sustainable while companies embrace on-demand services like software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS). These are areas that IBM (IBM) and Microsoft (MSFT) have begun to attack.

Secondly, management must address new ways to mitigate lower-cost services from Salesforce and Workday and other open source alternatives. Last but not least, rivals like Red Hat (RHT) and to a lesser extent Citrix (CTXS) have made inroads in areas like middleware, which is the software that lies between an operating system and specific software applications.

Although Oracle still has advantages in both middleware and database markets, Oracle's name is no longer enough to win over customers. Enterprises are looking for differentiation. If Oracle can address these three areas, the stock should do well in the long term.

The bottom line is Ellison, who has executed a well-thought-out plan to turn Oracle into a cloud power, is much smarter than initially perceived. Investors would be wise not to bet against him.

At the time of publication, the author held no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Why Would Anyone Want to Buy Yelp?

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ORCL $37.96 -0.21%
AAPL $111.43 -0.15%
FB $95.07 0.86%
GOOG $650.09 0.53%
TSLA $218.56 1.40%


Chart of I:DJI
DOW 17,105.77 -26.09 -0.15%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,825.8020 -12.8410 -0.27%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs