The cloud networking boom has been a huge growth driver for many businesses since the late 1990s, when cloud computing was first introduced. Since then, there’s been many different strategies for investment. The development aspect of cloud computing is where a lot of investors chase profits, but what about companies that are providing a seamless transition for business clients? Analyzing two companies that work on each end of the spectrum offers a novel approach to anyone chasing clouds.
Oracle Corporation (NYSE:ORCL) began as a database software and hardware company. Over the years, the business tech corporation has integrated more cloud-based services. In 2011, the company completed a seven-year rewrite for all of its applications to work with the cloud, and boasts the top database system for cloud networking.
Since 2011, Oracle Corporation (NYSE:ORCL) has considerably down-scaled its hardware systems and spent more time on computer/cloud software. CEO, Larry Ellison, recreates the company as a “cloud service,” a business that offers plug-and-play to other businesses, with less complexity and/or capital investment.
But, the company is spending a lot in capital investments to improve middleware and application management, along with faster cloud delivery. Oracle Corporation (NYSE:ORCL) has expanded its reach to integrate with other cloud and business solutions industry leaders, including Microsoft Corporation (NASDAQ:MSFT), Netsuite, and salesforce.com, inc. (NYSE:CRM).
Verizon Communications Inc. (NYSE:VZ) also utilizes cloud services, but packages them in a more finished and ready-to-use way. The company isn’t heavily into providing cloud services to consumers, but it’s getting there. Verizon Communications Inc. (NYSE:VZ)’s Global Enterprise segment deals with infrastructure, cloud services, and M2M (machine-to-machine, a type of data processing network).
Verizon Communications Inc. (NYSE:VZ) has a geographic and demographic outreach similar to Oracle Corporation (NYSE:ORCL), appealing to government agencies and businesses worldwide.
Compared to Oracle Corporation (NYSE:ORCL), Verizon Communications Inc. (NYSE:VZ) has taken almost a mirror approach to growth, integrating partnerships with cloud infrastructures like Equinix, and leveraging its services to cross-sell products and approach new markets, including healthcare and government security.
The company’s growth strategy is paying off. Year-over-year, in 2013, Verizon added 850,000 machine-to-machine connections (a 211% increase). These data-harvesting technologies further Verizon Communications Inc. (NYSE:VZ)’s increasing grasp on the data solutions market.