for raising expectations to a level that Oracle couldn't deliver. But that's in the past. CRM) and Workday ( WDAY) have performed. To that end, I'm looking for significant improvement, not only in Oracle's overall revenue growth, but also in new software licenses and cloud software subscriptions. By "significant," I mean growth in the area of 3.5% to 4%. Posting growth of less than 1% just isn't going to cut it, especially when it missed management's own guidance. While I will agree that the Street's reaction, and the stock's subsequent 9% decline, was completely overblown, Oracle may have had it coming. As noted, the March quarter, during which revenue fell 1%, wasn't any better. And as fundamentally solid as Oracle has always been, the Street has also demonstrated very little patience for underperforming mature companies. By contrast, and in the case of Workday and Salesforce.com, the Street is more than willing to reward incredible growth stories with outrageous valuations. Also, Oracle certainly didn't help itself by issuing lower-than-expected guidance for the current quarter, on which it will report Wednesday. The Street will be looking for EPS of 54 cents on revenue of $8.48 billion, which represents revenue growth of 3.3%. IBM) and SAP ( SAP) as providing better SaaS, or software-as-a-service, Oracle is said to be unprepared for the shift seen in enterprise, in terms of how IT companies procure strategic service initiatives. Although Oracle hasn't had any "blowout" quarters of late, to the extent that the company has been significantly outperformed by IBM and SAP, I disagree.
However, I do believe that Oracle's total addressable market, which also includes software, hardware and services, is now in transition. To that end, the Street seems to have completely ignored Oracle's recent transactions, including the company's $2.1 billion acquisition of Acme Packet ( APKT) and also buying network vendor Tekelec shortly thereafter. Clearly, management has never gotten the credit it deserves for diversifying the business. And contrary to popular opinion, I don't believe that Oracle's soft patch has been a situation where the company is falling behind in the cloud and/or succumbing to pressure. Nor am I ready to buy the notion that the cloud/Big Data market has suddenly become saturated. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.