Oracle Corporation (ORCL) To Be Crushed By Hadoop, MongoDB?


In a program on CNBC, it was reported that Oracle Corporation (NYSE:ORCL) has missed its earnings estimates for no less than three consecutive quarters. This means that the company is plummeting and a massive change has to be introduced.  Nomura Securities analyst Rick Sherlund said that Cloud is the solution for Oracle Corporation (NYSE:ORCL). Industry is shifting pretty rapidly and the companies are becoming swiftly fixated around Cloud platforms. All the major tech players are investing heavily in the Cloud in one form or the other.

Sherlund said that on-premise computing is coming to an end in the Enterprise and Oracle Corporation (NYSE:ORCL) must understand this reality. Over the next two years, around 50% of the mainstream technology platforms, industry and companies will be migrated from on-premise, local platforms to Cloud. Public and private Clouds are leveraging the industry resources along with increasing the optimization angle of the computing.

Sherlund thinks that around 5% of the revenue of Oracle Corporation (NYSE:ORCL) comes from Cloud. The Street is not impressed by this. Investors think that the Cloud revenue of the Cloud must be close to 50%. The licensing business of Oracle Corporation (NYSE:ORCL) is touching a dead end. The company’s on-premise platform is not growing.

Sherlund said that Hadoop and MongoDB technologies are becoming a threat for Oracle. Oracle Corporation (NYSE:ORCL) must work on new technologies apart from its on-premise business. He said there is a huge potential in Oracle Corporation (NYSE:ORCL); the company will generate $16 billion free cash flows next year and there are a plenty of options left for it.

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