Cloud Technology Takes on Oracle
The once undefeatable technological hardware advanced company, Oracle, has come to seek new changes in the new trend of cloud storage. Oracle has a long history of success in their field of technological development but the number of their reported sales and profit has missed analysts estimate. The suggested reasoning is that since the majority of revenue Oracle receives comes from hardware, the decrease in hardware sales caused the company to be valued at a lower state. Consumers are moving towards technology that requires no physical hardware such as cloud storage.
Oracle has faced a big hit in hardware revenue. The hardware revenue portion of the company which includes the servers and storage, has decreased 23 percent to $671 million.
Though oracle tried to revolutionize and catch up with the demand of consumers they have yet to accomplish it even with the acquisition expansion within the company. Even though cloud storage does not generate as high as physical hardware, it is still crucial for the company to take market shares of those who do use cloud storage. Competitors such as SAP has featured cloud-software market where it gets consumer that purchased physical hardware to transform into the use of cloud storage.
Oracle closed at $32.30, a 9.7 percent drop which is the largest decrease since December 2011.
Written by: Victor To