Over the years, Oracle
The launch pad
Just when the Oracle OpenWorld Convention 2011 in San Francisco is grabbing headlines, there is some news on a different front from the company. The first week of October saw CEO Larry Ellison unveil two exciting products: the latest version of SPARC Solaris computer and the Exalytics Intelligence Machine. Oracle is known for its brilliant technology related to engineered database management systems. These product launches came as a surprise to me, as they specifically target the hardware segment. Intrigued, I decided to explore the developments in the segment further.
While IT experts, analysts, and enthusiasts were busy attending the OpenWorld convention, the company was already working on plans for next year's launch -- a brand new version of SPARC microprocessor. This upgraded version of SPARC is going to give stiff competition to IBM
Giving competitors a run for their money
The revenue from Oracle's software license notched an impressive $1.5 billion, an increase of 17%. Though the company did not rely on large deals for achieving this growth, it is evident that it was generating revenues because of regular software updates and enhanced product support. The company's $7.4 billion acquisition of Sun Microsystems last year brought it back into the competitive field of hardware technology. After this takeover, Oracle made a deal of 1,000 units of its high-end Exadata system to companies including Procter & Gamble, along with the sale of server computers to other vendors. The company is optimistic about selling 3,000 more units of the Exadata system this year alone, hinting at its strategy of pushing hardware sales further. Of course, this foray brings it into direct competition with former partner Hewlett-Packard
At the OpenWorld Convention, Ellison highlighted that Oracle is keen on improving the performance of computers by developing possibilities of parallel computing with multiple processors. The company is thus gearing up to go head-to-head against players in the segment like SAP
In a nutshell
Despite Oracle's hardware sales dipping by 1%, strong leadership and efficient management helped the company pull off revenue of $8.37 billion in the first financial quarter of 2011. Additionally, the company has also announced a quarterly cash dividend of $0.06 per share, payable to shareholders as of next month. I'll be buying my shares before then.
All told, Oracle's extensive product line will make an impact on tech-savvy consumers time and again. In fact, the introduction of advanced technology products on a regular basis cements my belief that the company is poised for fast growth. If you're looking to invest in the data space, consider Oracle along with the only stock you need to profit from the NEW technology revolution. You can view this special report from the Motley Fool by clicking here.
Fool contributor Vibhuti Shah does not own shares of any of the companies mentioned in this article. The Motley Fool owns shares of Oracle, International Business Machines, and Microsoft. Motley Fool newsletter services have recommended buying shares of Dell, Procter & Gamble, and Microsoft, as well as creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.