NEW YORK (TheStreet) –- Oracle (ORCL) has taken the cloud by storm, and the sweeping steps it's taken to embrace this fast-growing business make it one of the top cloud companies to watch out for in 2015, analysts say.
Before reporting second quarter earnings Wednesday, the world’s second largest software company, which has struggled to compete with nimbler rivals like Salesforce.com (CRM) , assured investors it would become a central player in cloud-based services.
Must Read: 10 Stocks Carl Icahn Loves in 2014
With cloud revenues surging 45% year over year to $516 million in the second quarter, Oracle delivered on that promise. The company also said its software and cloud revenue grew 5% year over year to $7.3 billion. This was enough to send the stock soaring more than 7% Thursday, to $44.22.
But can this strength in Oracle shares last?
Oracle is adjusting to a software industry that is moving away from on-premise systems to cloud-based systems. Companies no longer want to manage their own servers onsite. Instead, they're embracing the type of on-demand cloud service offered by the likes of Salesforce.com and Workday (WDAY) -- a platform known as SaaS (software-as-a-service).
Wednesday's cloud results, however, show that Oracle's transition has begun to accelerate. The 45% year-over-year jump in cloud-based software, platform and infrastructure products means that Oracle is appealing to its customers and the company is not losing ground to the likes of SAP (SAP) and IBM (IBM) .