Oracle (NYSE:ORCL)
Guggenheim, an investment company, said on Friday that while Oracle (NYSE:ORCL) is now a distant fourth in the cloud computing industry behind Amazon, Microsoft, and Google, the IT giant might potentially profit from this position, both from a technical and financial viewpoint.
Analyst John DiFucci, who met with Oracle’s cloud leadership, said that the takeaway from the discussions provided the investment firm confidence that Oracle’s position in the race, as well as its history as a technology business, explains why it can offer cloud services at “substantially” lower costs than its rivals and twice the performance.
In a letter to investors, DiFucci said, “Although it does not seem that there is a single silver bullet, there may be hundreds of them since Oracle has built upon the triumphs and failures of others who came before it while injecting decades of technical innovation that is the essence of this firm.”
In terms of the company’s bottom line, DiFucci highlighted that Oracle’s cloud financials increased by 65% during the fiscal third quarter, with the growth rate anticipated to pick up speed during the subsequent quarter.
DiFucci pointed out that in contrast to other public cloud suppliers, Oracle has charged lower costs for infrastructure-as-a-service while charging higher fees for platform-as-a-service offerings, particularly databases. Oracle, founded by Larry Ellison, has also benefited from providing fully functional cloud instances in smaller footprints than its competitors.
Suppose everything goes according to plan, and consider the ratable model. In that case, we anticipate [Oracle Cloud Infrastructure] to have a bright future shortly… and in the not-too-distant future,” DiFucci said.
Oracle used Nvidia’s BlueField for its data center acceleration needs.
In the early Friday trade, Oracle stocks were slightly higher.
Featured Image: Unsplash @ boliviainteligente
