Over the last few years, Oracle has quietly morphed into a cloud computing power player although its stock price has yet to reflect that new reality, according to a recent Barron’s cover story.
The company’s full complement of business applications plus its burgeoning cloud infrastructure business give it a big advantage in cloud computing at a time when that tech category is booming.
Analysts quoted in the story—headlined “Oracle’s Next Quest”—argue that while Oracle has significantly upped its cloud game, investors have been slow to recognize that fact. That is starting to change.
Over the past five years Oracle has rebuilt its cloud computing capabilities—rolling out dozens of data regions around the world—moved its leading financial, supply chain, HR, sales, and marketing software over to that new infrastructure; and attracted impressive new customers including Zoom, 8X8, Nissan, Phenix, and Cybereason to run on Oracle Cloud Infrastructure.
This change has reshaped the company, but not everyone has noticed yet, partly because, huge changes often take a while to take visible form. It takes time and resources to build new data regions and move business applications—along with their complicated customizations—from on-premises to the cloud, and the result of that work is now surfacing.
Long story short: Investors who don’t view Oracle as a growth stock need to adjust to the company’s new status of Oracle as a cloud power.