Who would you say are Oracle's competitors if not PSFT, ORCL, SEBL and SAP? IBM?
Hueyone, I am certain that you and I have discussed this before, and I don't know if you just forgot or you are trying to test me, or what.
Oracle does not have any meaningful competition in the most important part of their business. This is the engine business. Oracle is the leader, by far, of the database engine category. The only competition they have here is the sql server line from msft, and DB2 from IBM, but those are much smaller in terms of share.
The other half of Oracle's business, applications, competes with the companies you list above.
Here is a quote about Oracle's numbers yesterday from SFgate-
"I was a little bit shocked in the decline in new licenses' revenue," he said. "That's the key parameter that everybody watches, not just for Oracle."
In a research note, analyst Brent Thill of Prudential Financial attributed the decline to "a combination of poor sales execution and a tepid IT (information technology) spending environment."
sfgate.com
Compare "poor sales execution" and "tepid" IT environment with,
Analysts had expected Philips to sound an upbeat note at its analyst presentations, echoing a string of positive chip sector comments sparked by sector behemoth Intel (NasdaqNM:INTC - News) last month.
biz.yahoo.com
Intel Repeats Optimistic Q3 Forecast
forbes.com
AMD CFO Says July, August Sales 'Encouraging'
biz.yahoo.com
Chip Sales Rise for Fifth Straight Month
thestreet.com
So why are the chip companies doing well and Oracle doing poorly? Care to venture a guess?
Now take a look at some of Oracle's largest customers:
GM Takes to Offshore Outsourcing
We're pushing them to do that. We have in excess of 2,000 people in India through outsourcers. We use five or six Indian companies. HP, IBM and EDS are all moving over there to be competitive. It's an outsourced model, and the benefits of the outsourced business model are amazing.
GM to provide global engineering services from India
rediff.com
Sprint plans to send hundreds of technology jobs overseas
kansascity.com
IBM Global Services is a Cisco Gold Partner in India
www-8.ibm.com
and general trends...
India has emerged as a backoffice for the world with companies shifting jobs such as call centres, payroll processing, insurance claims processing and technical support to the country despite strong opposition back home.
australianit.news.com.au
Back to your point,
Perhaps you better take another tact in your case against dumb old Larry Ellison and his idiotic outsourcing program.
I don't think so. Oracle's numbers stunk, Oracle sells very high priced backoffice software, Oracle is itself the largest outsourcer of tech skills in the bay area (in fact many believe they initiated the trend), and India has emerged as the backoffice for the world.
Put all this together, forget what Oracle's numbers are today- what does Oracle's future look like???
BTW Oracle has not participated in any naz rallies for months. If we weren't in what I consider to be a strong uptrend I would short Oracle now. |
