In my forecast for Oracle's
You know, it feels good to be absolutely right.
The quarter itself was another great one for the books, with 32% year-over-year sales growth to $3.2 billion and 24% earnings growth to $0.18 per share. Those numbers easily exceeded forward guidance and analyst expectations. I'm batting 1-for-1 so far, then.
And then Ellison and his senior executive staff decided to rip into competitor SAP
This speech centered on the adoption of service-oriented architecture (SOA) solutions (here's more about that subject) and open industry standards. Ellison pointed out that SAP's software suite is entirely proprietary, while his own is based on Sun's
That puts Oracle in position to grab market share by selling to companies that already have expertise and a comfort level with these competing toolkits. It should be a much easier sell than SAP's "retrain or rehire your middleware team" alternative. As for SOA, Ellison said that Oracle is two years ahead of SAP on the road to a complete suite of pluggable components.
"We are trying to be best in class, open and hot-pluggable with competing components," Ellison says, "but we hope over time, if Oracle does a good job in delivering its components, you will prefer to use our completely integrated suite as opposed to trying to mix and match amongst multiple vendors." As this comment implies, Oracle does have a long-term plan in place, and it's performing ahead of schedule to boot. Yes, Larry talks a big game, but his company is still backing him up on every point.
- Rival Business Objects
(NASDAQ:BOBJ)is spending money to make money.
- Great companies, great returns.
Sign up for a free 30-day trial to any of our newsletters to find more great companies with great business prospects.