The database giant trails leaders Amazon (AMZN) - Get Report , Microsoft (MSFT) - Get Report and Alphabet's (GOOGL) - Get Report Google in the cloud wars, but Oracle Cloud SVP Steve Daheb says the database giant takes a more integrated approach to the cloud that he believes will pay off.
"We look at the cloud maybe a little bit differently than some of [our rivals]," Daheb told TheStreet.
For Oracle, there's the traditional software-as-a-service (SaaS) layer comprised of business applications for human resources, sales and marketing, etc. Them there's the platform-as-a-service (PaaS) layer where the database lives and where integration, analytics and security come into play. And then underneath all that, there's the infrastructure-as-a-service (Iaas) segment that handles machine learning and AI workloads.
This combined approach extends to how Oracle accounts for its cloud business, grouping all three of them, along with traditional software license update and product support revenue into one category in its earnings report. This decision, announced last June, didn't sit well with some analysts, who preferred to see more granular results. But Daheb maintains that the grouping reflects how customers buy services today, with a mixture of on-premise database licenses and cloud-based solutions.
Beyond how it sells and groups its cloud business, Oracle is also trying to differentiate its offerings by offering an "autonomous" database that's self-healing and self-patching, as well as embedding machine learning and AI into its cloud solutions.
Jim Cramer's Action Alerts Plus portfolio is a strong believer in the trend towards the cloud and the ability of companies to profit from it.
"Especially in a market as volatile as this, we value those names levered to the cloud because we think it is a secular trend that represents the future of computing and can grow despite any slowdown the broader global economy," said Zev Fima, research analyst for Action Alerts Plus. "Because of the increased functionality, scalability and variable cost structure the cloud provides, it just makes sense for companies to continue to pursue their digital transformations and increasingly shift from on-premises data centers to cloud-based or hybrid solutions.
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