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Google Inc (GOOG), Cisco Systems, Inc. (CSCO): Cloud & IT, Where To Invest May Surprise You

Oracle Corporation (NASDAQ:ORCL)

Oracle Corporation (NASDAQ:ORCL) has always been a silent success. With another solid quarter in the books for Oracle, the company is still finding it hard to dispel market concerns about its ability to fend off increased competition.

The company reported a 3% increase in revenue reaching $9.1 billion. Part of this was due to the software licenses and subscriptions which have performed exceptionally well — soaring 17% year-over-year.Oracle Corporation (NASDAQ:ORCL)’s strong cash position, deep market penetration, and innovative strategies put it on top.

Moreover, while other companies focus on offering a cloud computing product (which, stand alone, is seen by some as limiting), Oracle Corporation (NASDAQ:ORCL) offers support to other businesses through back-end, database structuring, and implementation. As it stands, there is no other name that ties in all of the cloud benefits and data analytics together as Oracle Corporation (NASDAQ:ORCL).

To deliver a hybrid cloud computing system, Oracle Corporation (NASDAQ:ORCL) partnered with Nimbula to better assist company management software development in private and public arenas. Oracle Corporation (NASDAQ:ORCL) proposes the new cloud system will assist business enterprises’ plans efficiently and simultaneously and maximize business sales in a simple and easily manageable format.

Microsoft Corporation (NASDAQ:MSFT)

Microsoft Corporation‘s (NASDAQ:MSFT) PC sales keep declining. Consumer demands have shifted the technology industry towards mobile devices. In fact, tablets are expected to grow by over 60%, smartphones by about 25% while PCs/laptops will remain flat at best, and at worst, drop drastically.

In addition to this dismal news, Windows 8 is not selling well. It was hoped that Windows 8 operating system would revitalize PC sales and help spark a new upgrade cycle. However, Windows 8 has failed to meet expectations as users have been somewhat confused with the new and unlabeled layout.

With all that, Microsoft Corporation (NASDAQ:MSFT) is still performing. This is because it spreads its software on multiple levels, diverse platforms, and has created its own option for access any time, any where. It’s hefty, ongoing investment in Office 365 — the online edition of its productivity suite — is a testament to how fast cloud computing services have caught on, and how the company plans to stay competitive.

The company recently posted strong quarter results. Its ‘Server & Tools’ division delivered $5.04 billion in revenue, an 11% increase that the company has credited to double-digit percentage revenue growth in SQL Server and System Center. The Business Division posted revenue of $6.32 billion, an 8% increase year-over-year. This is where Microsoft Corporation (NASDAQ:MSFT) should look to increase its ‘cloud coverage’ and make it more appealing to small to mid-sized businesses.

Conclusion

Companies that specialize in cloud services and infrastructure have seen big gains in sales and earnings in recent years. But, in spite of their impressive gains, cloud stocks are trading with nose-bleed valuations and priced for perfection, making them extremely vulnerable to bad news or weakness in the market. Investors can look with confidence in these four companies because all have stood the test of time, and all have positioned themselves for future profitability through cloud computing.

The article 4 Cloud Services & IT Stocks for Your Portfolio originally appeared on Fool.com and is written by Bill Edson.

Bill Edson has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and Google. The Motley Fool owns shares of Google, Microsoft, and Oracle..

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