Market Overview

Salesforce Taking Heat from Oracle


The company will need to move fast if it wants to differentiate itself against Oracle, says analyst.

Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, sent out an incremental update on Oracle (NASDAQ: ORCL) to discuss the company's forthcoming cloud announcements.

"On June 6, Oracle will be launching a Suite of Cloud Applications and Platforms," Chowdhry wrote. "This will include CRM (Customer Relationship Management), HCM (Human Capital Management), and Social [Networking]. On the platform side, it will include Java and Database."

Chowdhry believes that these cloud applications and platforms "can scale from an individual user to large enterprises."

"Since Oracle has optimized both the software and hardware stack, Oracle's offering [is] expected to be 20% to 40% faster than," he said. "Pricing of Oracle Cloud is expected to be competitive with Starting June 6, Oracle Public Cloud can be accessed at"

Further, Chowdhry believes that Oracle's Public Cloud will "very likely take aim at SAP with its Public Cloud offering, but may mention only in passing."

"Oracle may openly play down competition with as is also Oracle's major customer," Chowdhry added. "However, our research is indicating that some large customers are in Oracle Public Cloud Pilot.

"Large companies are attracted to Oracle Public Cloud because of its Virtual Machine based architecture, which allows the customer data to easily move between the Public Cloud, which is hosted by Oracle, and Private Cloud, which is on the premises of the customer."

Finally, Chowdhry said that he thinks that the rumors that may acquire Buddy Media or some other company in the Social Computing space may be accurate, "as the entry of ORCL into Cloud Application space creates a competitive challenge for, and will need to move fast to continue to differentiate itself against ORCL offering."

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Posted-In: Global Equities Research Oracle Salesforce Trip ChowdhryTech Best of Benzinga


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