These 'Bold' Cloud Predictions Could Boost Oracle Investors

• Oracle Corporation ORCL has seen a 16.01 percent decline in its share price year to date, from a high of $45.34 on December 30, 2014.
• Drexel Hamilton’s Brian J. White has maintained a Buy rating on the company, with a price target of $46.
• The company made several product announcements at its first dull day Oracle Open World, held in San Francisco on October 26. CEO Mark Hurd gave the keynote address.

Analyst Brian White mentioned that the product announcement made by the company included “a New Data Visualization Cloud Service, new features for the Oracle ERP Cloud, new Oracle Supply Chain Management Cloud offerings, beta availability of Oracle Database 12c Release 2, new Database Cloud Offerings, new Oracle HCM Cloud capabilities and more.”

During his keynote address, CEO Mark Hurd made five predictions for 2025, associated with the cloud, such as 80 percent of all production applications would be on the cloud by 2025, as compared to only 25 percent at present.

Mr. Hurd also predicted that two providers of SaaS suites would control 80 percent of the cloud enterprise application market, “100% of software development/testing efforts will conducted in the cloud,” “all enterprise data will be stored virtually in the cloud” and “the enterprise cloud will be the most secure IT environment.”

CEO Hurd also indicated that 100 percent of Oracle’s portfolio was now re-written for the cloud. “Given Oracle’s broad portfolio of integrated hardware and software solutions, the company is better positioned to address all three layers of the cloud relative to its competitors,” White added.

White also mentioned that the quarter was expected to be more back-end loaded than expected.