Oracle Corporation (NASDAQ:ORCL)’s other smaller competitor Workday Inc (NYSE:WDAY) also continues to run at a loss like Salesforce, but at the same time has a distinct policy of marketing its software in a way that has made it accessible from multiple devices such as tablets and smartphones, the harbingers of modern-day communication. Workday’s clever customer mix of small, medium as well as big companies has also helped it to reduce dependence on any single customer – always a good thing for any upcoming company.
But that’s not all as Workday Inc (NYSE:WDAY) has very smartly targeted Oracle and SAP customers at the very time when they are supposed to upgrade their in-house vendor software, making the advantages of a switchover all the more obvious.
The ‘Mr. Softy’ angle
Having said that, all is not lost for Oracle Corporation (NASDAQ:ORCL), and there are some definite pieces of good news that should bring a smile to the faces of potential investors. The first of these centers around the tie-up with Microsoft Corporation (NASDAQ:MSFT), another tech behemoth that is fighting to survive in a post-PC world, as the two companies enter into a collaboration whereby Oracle’s 12c cloud-based software will be offered as a part of Microsoft’s Azure cloud-based application. Incidentally, the 12c is Oracle Corporation (NASDAQ:ORCL)’s first ever public cloud offering, where applications tend to reside in shared servers. While this highlights Oracle’s obvious need to popularize its newest cloud-based offering as soon as possible, even if it means tying up with an old enemy like Microsoft Corporation (NASDAQ:MSFT), the collaboration would surely add to its revenues and expand the customer base.
Microsoft Corporation (NASDAQ:MSFT), on the other hand, would certainly welcome this partnership, as Oracle’s reputed offerings such as Java and Linux should help its Azure initiative to counter the dominance of Amazon’s web-based services. Oracle has announced collaborations with salesforce.com, inc. (NYSE:CRM) as well, but then the latter already runs Oracle Corporation (NASDAQ:ORCL)’s databases and the terms of the deal are as yet unclear.
At the same time, Oracle’s management claims that the company has acquired up to 500 new customers for its cloud-based offerings and has also actually performed well in otherwise downmarket regions such as Europe. With its newest customer list boasting of big names such as eBay Inc (NASDAQ:EBAY) and Yahoo! Inc. (NASDAQ:YHOO), things should look up on the revenue front for Oracle Corporation (NASDAQ:ORCL) in the upcoming quarters.
Some parting thoughts
Oracle’s present situation invites pessimism on all fronts, but there is still a ray of hope for the future. What is particularly needed is a complete change in attitude on behalf of management, which needs to realize the real issues faced by the company at present. Having said that, the announced partnerships with Microsoft Corporation (NASDAQ:MSFT) and Salesforce are good steps in this direction.
At the same time, pricing is another aspect that the company needs to have a close second look at. I would recommend holding on to this stock for some time more, but this is definitely not the time to make any fresh purchases. One should do well to wait it out until things unfold a little bit more for Oracle Corporation (NASDAQ:ORCL).
Subhadeep Ghose has no position in any stocks mentioned. The Motley Fool recommends salesforce.com, inc. (NYSE:CRM). The Motley Fool owns shares of Oracle Corporation (NASDAQ:ORCL).
The article Oracle: Better Late Than Never originally appeared on Fool.com.
Subhadeep is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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