So it looks like O’s cloud strategy has been scaled down from providing general cloud capabilities to the much more limited Exa for Oracle DB. More realistic in terms of O’s ability to deliver but clearly LE has given up on competing with AWS and MSFT in IaaS. A Johnny come lately strategy with high risk and very limited potential. Company totally overvalued - share price shouldn’t be higher than $15 a share
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Oracle does not even make Gartners list of the top IaaS providers, just lumped in with others.
https://www.gartner.com/en/newsroom/press-releases/2019-07-29-gartner-says-worldwide-iaas-public-cloud-services-market-grew-31point3-percent-in-2018
@10eBnEpe-1suh, Larry is in an acquisition binge.... of Oracle own stock.
A couple of quarters like the previous and there will be no money left to acquire anything.
Yeah it’s absolutely laughable (or you can cry if you want to) that O has so completely failed to stand up a solid IaaS. I mean, how difficult is that! Isn’t that why O bought Sun for Christ’s sake! What an unbelievable CTO fail. LE - you’re a has been! And of course without a competitive IaaS the rest of the O cloud is a total joke. And that is exactly where things stand!
@2ojt - history is on my side, you’re like a turkey before Thanksgiving thinking the farmer will keep feeding you as he’s getting ready to turn it into dinner
The $10 Bn annual profit is a fast vanishing mirage and that’s how we get to a much, much lower hate price
You've been saying that for years. Do you ever get tired of being wrong?
Cloud strategy should be this:
1) IaaS - Provide a very solid and scalable IaaS platform. It needs to be rock solid in terms of VMs, in terms of storage (block, object, archive, cold), and Docker/K8s.
2) DbaaS - Rock solid for Oracle Databases
Then move into PaaS
3) Great products as a service (Integration, Java etc).
4) Applications as a serverless
Also, get into serverless.
The problem is this, IaaS s—s and because of that many other things that depend on it also s—. Go back to basics and make sure you get that right.
The $10 Bn annual profit is a fast vanishing mirage and that’s how we get to a much, much lower hate price
O has a very average P/E ratio (~18) which is lower than the NASDAQ average of 19. Amazon's P/E ratio is 95, Microsoft's is 34.
One could argue that O isn't overpriced, at least when compared to the rest of the market. That said, the market in general is overvalued and there could be a bear market not too far down the road.
If O were to trade at $15 it's P/E would be among the lowest in the NASDAQ, and there are many companies doing far worse than O. As long as O has net profits of $10B and pays dividends, that won't happen.
O is a mix of IBM on the top line - declining - and the old HP on cost side - T–d cost cuts, plus massive share buybacks to maintain EPS and share price. Not a good story, but a struggling survivor so far
As long as O can continue to squeeze ridiculously sized profits from key product lines and cut offerings that don't have good margins, it's likely an OK investment in the short-to-mid term. If there is one thing O does well it's milking existing customers who put off making the inevitable (painful) move they know has to happen eventually. This can go on for many years. Not a tech growth company story, but O hasn't been that for quite some time.
There is one caveat I'll throw out there. Larry decides to go on another acquisition binge like he did in the 2000's. That could add some life to this existing strategy and maybe provide a slight opening for a growth play.