As I noted last week, Oracle is trying to manage a transition from its traditional client-server architecture to a cloud architecture. While cloud technology is designed to lead to lower costs, using commodity hardware and open software, Oracle's cloud is based exclusively on its own hardware and applications. Ellison's biggest gamble to date was the purchase of Sun Microsystems in 2010. He focused his remarks on the complete refresh of the company's hardware line, which the company sells profitably as a package with its software. Ellison insisted hardware sales will accelerate with the release of the new products. He said sales of Exadata storage units fell only because customers were buying entry-level versions of new products, adding he expects those sales to grow as well. "We delivered a lot more technology and a lot more performance," Hurd concluded. "Our pipeline is up, unit levels are up, so we're in a really strong position." But the stock's price remained down, with the price falling another 50 cents during the call. Ellison's conclusions were upbeat as well. "The technology continues to advance, our user interface is taking a giant step forward, we're encouraged that our ability to compete and win in the marketplace is getting better every month." If he's right, Oracle starts the day as a bargain. At the time of publication, the author owned no Oracle stock.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.