Oracle Corporation (NYSE:ORCL) CEO, Safra Catz, in an interview on CNBC has affirmed that the company remains focused on pursuing success on the cloud as it did on the enterprise. Push for growth on Vertical integration according to Catz is expected to spur growth while boosting the company’s profit margins.
Catz reiterated that Oracle Corporation (NYSE:ORCL) was just getting started on the hardware and software side of the business; opportunities for growth in these two sectors according to the CEO remain endless. Cloud sales have already improved attributed to the aggressive working of the company’s salesforce team. Oracle’s cloud offering continues to achieve success as a result of positive reviews from customers currently using the service.
A fierce battle is to ensue on the cloud as Oracle Corporation (NYSE:ORCL) continues to prepare itself to offer infrastructure as a service according to CNBC’s Jon Frott.
“Oracle Corporation (NYSE:ORCL) is going to be price competitive with Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and others in infrastructure as a service. I wonder how this is going to affect margins,” said Frott.
Catz believes that Oracle Corporation (NYSE:ORCL) will always remain cost-effective mainly because of an engineered system that allows the company to run its software’s efficiently. This is expected to give the company an advantage on the cloud when competing against Microsoft Corporation (NASDAQ:MSFT) and Google Inc. (NASDAQ:GOOGL).
Oracle Corporation (NYSE:ORCL) has already grown its engineered systems to become one of the biggest in the industry and almost a third of the hardware business.
Competition is heating up in the enterprise software business with all the players focusing on enhancing top-line growth. Despite the ever increasing competition, Oracle Corporation (NYSE:ORCL)’s Executive Chairman, Larry Ellison, believes that the company remains well positioned to compete against Google Inc. (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) on the pricing of infrastructure as a service.
Donald Yacktman‘s Yacktman Asset Management held 27.71 million shares of Oracle Corporation (NYSE:ORCL) at the end of the second quarter of 2014.
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