Oracle Update: Committed to the Enterprise Cloud

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The last two weeks haven’t gone down well for most technology stocks, and Oracle (NASDAQ:ORCL) is no exception. Oracle’s stock dropped nearly 8% in that period, following a broad market sell off due to the escalating European debt crisis. In the past few days we have seen a recovery in tech stock on the prospects of a new EU deal and the coordinated efforts of global central banks. Below we look at some updates for Microsoft. Besides that, there have been a few significant developments related to Oracle, which could have some impact on its stock going forward. Oracle competes primarily with SAP (NYSE:SAP), Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM) and Salesforce.com‘s (NASDAQ:CRM) in the enterprise software market. It recently embraced cloud computing at the OpenWorld conference and launched the Oracle Public Cloud. It also acquired RightNow, a leading provider of cloud based customer service, to compete with Salesforce.com, the leader in the on-demand CRM market.

See our complete analysis for Oracle stock.

This week, it launched the next version of its application server – WebLogic 12c, which enables enterprises to build their own private clouds with the Exalogic application server appliance. Customers can run Oracle Fusion applications, middleware and the Oracle Database on their own private cloud, and also switch them between Oracle’s Public Cloud and their private cloud easily. ((Oracle Set to Unveil Cloud-themed Application Server, WebLogic 12c, PC World))

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Oracle is trying to capture a major slice of the growing enterprise cloud computing market with its new offerings. Microsoft and SAP have also started focusing on cloud based software, and Salesforce.com continues to roll out new cloud based apps and services like Do.com and Heroku Postgres.

Oracle also launched a new version of its agile product lifecycle management software with an improved user interface, better analytics and enhanced productivity features. ((Oracle Unveils New Release of Oracle’s Agile Product Lifecycle Management for Process, Press Release))

Application, database and middleware software account for nearly 75% of Oracle’s $40 Trefis price estimate, which stands nearly 30% above its current market price.

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