Oracle Corporation (NASDAQ:ORCL) turning over a new leaf?
Oracle Corporation (NASDAQ:ORCL) has always been the diffident one and does not really have a reputation of working cohesively with others. The company’s top reseller partners will second that. However, over the last week, ORCL has launched agreements with Salesforce.com. The latter is a long-time Oracle competitor and customer. The shocker though is its rapprochement with Microsoft, a strong adversary in the database market. As if trying to make a point, the company also added some glue to its NetSuite ties. This is not too much of a brow-raiser as it does not compete as much with this one as it competes with the Microsoft and Salesforce. Also, Larry Ellison, the Oracle CEO is still a big stakeholder in the company.
Does this really make sense?
Sure it does! The cloud computing business is no game and every player, big and small wants its chunk of the pie. Oracle wants to be the ammunition-wielder to the cloud. In order to do that, it definitely needs to bake its basic database operate on every possible platform.
Considering the fact that 14 years ago, Salesforce was built on the Oracle database, Oracle’s deal with the company is definitely an interesting one. The two companies have agreed upon making Oracle HRM as well as other applications work seamlessly with the Salesforce CRM. They will also be running each other’s technology in-house. Originally, oracle has announced that Salesforce would be standardizing on the Exadata engineered systems, Linux operating system, Java Middleware Platform and the Oracle Database.
Oracle plans on integrating salesforce.com with its Financial Cloud and Fusion HCM. The plan is to provide the necessary core-technology to power the former’s platform and applications. Salesforce will also be implementing Oracle’s financial cloud applications and Fusion HCM throughout the company. There has been news that this standardization may not take place to the extent that had had been announced earlier and that Salesforce may not be replacing and ripping all the hardware it already has, for Exadata.
Oracle has touted massive growth in its engineered systems sales, but fact is that overall hardware-revenue has been on the decline for over a year. Higher-margin Exa machine sales have not been able to offset the drop in commodity boxes’ sales. Ellison as well as co-president Safra Catz had said that this trend would resolve itself by next year. Any Exa- sales that Oracle makes into NetSuite or Salesforce will definitely help that picture. However, it seems very unlikely that either company drop-will actually drop-kick its complete server-fleet for Exadata.