The in-memory market is a vast field, attracting businesses and organizations that want network fabric to run 10-20 times faster than commodity hardware. Companies can gain top-line revenue and growth opportunities if their solutions can transform batch processing to real-time and shorten response time with improved rendering.
When Oracle Corporation (NASDAQ:ORCL) announced the launch of its Oracle Corporation (NASDAQ:ORCL) In-Memory Applications for Oracle Corporation (NASDAQ:ORCL) Engineered Systems, I wondered whether the company could improve price multiples with its products. Below, I will explain why the features of the products, combined with the growth of the sector – along with Oracle Corporation (NASDAQ:ORCL)’s impressive software division sales – will enable it to compete in this market.
Oracle’s new In-Memory Products
Oracle Corporation (NASDAQ:ORCL) has combined many technologies to improve the competitive edge of its new products. Applications like the E-Business Suite In-Memory Cost Management and PeopleSoft In-Memory Project Discovery help organizations to complete load runs faster and discover new insights for efficiencies that would have been previously overlooked. To come this far, Oracle Corporation (NASDAQ:ORCL) had to leverage DRAM, flash memory, and network fabric to change business dynamics and reduce corporate costs.
While working on the applications, Oracle had to look into the issue of run-time. The company took steps to tackle this challenge. The resulting solutions make it no longer a problem, as executive can generate data crunching analysis in near real-time to make sound business decisions.
In-Memory Sector Growth
The growth in the global in-memory market will help Oracle to find buyers for its products and make good sales. Market Research Media, a respected firm, predicted that high-performance computing solutions, which include in-memory computing, will hit $220 billion by 2020.
While competitors such as SAP AG (ADR) (NYSE:SAP) have a sizable share of the in-memory market, if Oracle’s new applications make a splash, the company won’t have a problem of making a strong organic growth in the sector. Oracle could hire more people so that its increased workforce can match growth. This could provide a way to coax workers from competitors, since there is virtually no difference in the staff of telecom companies in the in-memory sector.
Software Division Growth
In the fiscal 2013 Q3 results, Oracle reported that software licenses updates and product support revenues went up 7% to $4.3 billion. Compared to peers SAP AG (ADR) (NYSE:SAP), which reported an 11% growth in non-IFRS software and software-related revenue, and Hewlett Packard Company (NYSE:HPQ), which reported a 2% decline in software revenue, Oracle is not doing badly.