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Buy Oracle Corporation (ORCL)?

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To many, Oracle Corporation (NYSE:ORCL) is a bitter rival to salesforce.com, inc. (NYSE:CRM). For investors, Oracle has numerous growth drivers in addition to its rivalry with Salesforce.com.

Oracle CorporationRecently, Oracle introduced its third-generation release of Oracle Enterprise Manager 12c. According to the company, the solution enables fast-growing enterprises to scale their IT environment and reduce the cost of their cloud network.

The product’s exadata database machine allows for pre-created plans for resource management and supports multi-rack configurations. According to the company, this assists managers to scale from managing an Oracle Corporation (NASDAQ:ORCL) exadata machine for racks of multiple machines.

The product’s new capability for Oracle Exalytics allows for a virtual and physical deployment. It also provides productivity tools for managers.

According to Oracle, the solution combines the benefits of a self-service database deployment and has a copy-on-write technology that enables instant database.

“As organizations are increasingly deploying clouds, cloud service providers are facing a number of management challenges,” said Sushil Kumar, Oracle Corporation (NASDAQ:ORCL)’s vice president for Product Strategy and Business Development. “With these new enhanced features, we are enabling cloud service providers to increase the efficiency and agility of their cloud environment.”

Oracle’s initiative in the cloud sector

Oracle has initiated many strategies in the last few months to improve its margins in the cloud sector. It announced a partnership deal with salesforce.com, inc. (NYSE:CRM) on software delivered via cloud computing. It is a nine-year partnership encompassing applications, platform and infrastructure. Also, Oracle Corporation (NASDAQ:ORCL) announced an alliance with NetSuite to deliver cloud-based services to mid-size business customers. The arrangement will integrate an Oracle software for human resources with NetSuite’s services for resource planning.

Competition

Oracle’s peers are Salesforce.com, SAP AG (NYSE:SAP), and Microsoft Corporation (NASDAQ:MSFT) .

salesforce.com, inc. (NYSE:CRM)  has been in a brutal competition with Oracle Corporation (NASDAQ:ORCL) with regards to gaining a market share in the cloud-based sector. Recently, Salesforce.com released a file-sharing product that will rival the new Oracle solution in parts of the market. But at a forward PE of 67.07, its shares are not as discounted as Oracle (10.13) at the moment. A competitor like SAP (19.36) is less expensive than Salesforce.com as well. However, salesforce.com, inc. (NYSE:CRM) is estimated to grow by 28.39% in the next five years, above the industry average of 15.88%.

SAP AG (NYSE:SAP) has been dumping money in cloud services to gain dominance. Apart from acquiring SuccessFactor, it has simplified its organizational structure to keep it in readiness for rivalry with Oracle Corporation (NASDAQ:ORCL). But at a forward PE of 19.36, it is more expensive than Oracle. SAP AG (NYSE:SAP) will grow at a slower pace than Salesforce.com in the next five years at a rate of 11.00%. At 1.10%, it offers more dividend than Salesforce.com, which offers none

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