Oracle’s Stock Headed to the Cloud

October 19th, 2011 by Trefis Team
+11.52%
Upside
117
Market
130
Trefis
ORCL: Oracle logo
ORCL
Oracle

Oracle (NASDAQ:ORCL) stock has been on a steady rise over the past two weeks following the Open World conference where it unveiled a series of new products. It has gained more than 10% since October 3. Among new announcements, it launched its cloud efforts that will allow it to compete with Salesforce (NASDAQ:CRM) and Microsoft (NASDAQ:MSFT) that have a large cloud presence.

Check out our complete analysis for Oracle

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Oracle’s stock propelled by new product announcements this month

Oracle launched the Oracle Public Cloud at Open World. Using its cloud infrastructure, it plans to offer its database, middleware and other Fusion applications as an on-demand, subscription based service. Salesforce.com was the first company to fully embrace the cloud, offering only on-demand web based applications. Microsoft and SAP have been leaning towards the cloud too, offering cloud based versions of their popular enterprise apps. Oracle has been a leader in enterprise software, especially when it comes to databases. The cloud computing market is expected to be worth nearly $150 billion in 2014, and with the Public Cloud offering, Oracle is now aiming for a big slice of that lucrative market.

Oracle also launched a new Big Data appliance for analyzing unstructured data and large data sets that cannot be processed properly using standard database tools. Along with the appliance, it also launched its new NoSQL database which provides a much more flexible data model, and greater scaling capabilities than standard relational databases. With this launch, Oracle plans to make its offering a one stop solution for any customer looking for a robust database offering compatible with any type of data.

Finally, it also announced the Oracle Social Network, its new enterprise collaboration tool, with which it aims to become the Facebook for enterprises. The Oracle Social network adds a social layer above Oracle’s current offerings, with features like activity feeds, personal profiles, status updates, discussion forums, document sharing, messaging, email, and web conferencing. It will be available as a web based application, and also on major mobile platforms like iOS and Android.

We have a $40 Trefis price estimate for Oracle, which stands nearly 25% above its current market price.

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