Oracle is an American multinational computer technology corporation headquartered in Texas. In 2020, Oracle was still the world’s third-largest software company by revenue and market capitalization. The company is particularly known for its database products, such as Oracle Database, and its cloud services. Oracle’s software offerings include enterprise resource planning (ERP) systems, human capital management (HCM) systems, customer relationship management (CRM) systems, and supply chain management software.
Oracle was founded in 1977 as Software Development Laboratories by Larry Ellison, Bob Miner, and Ed Oates. The company was the first to develop its products based on relational databases, and its first customer was the U.S. intelligence agency, the CIA. The company’s name was changed to Oracle Systems Corporation in 1983 and later to Oracle Corporation.
Oracle has grown through acquisitions, having acquired companies such as PeopleSoft, Siebel, and Sun Microsystems. Recently, Oracle has expanded its operations more into cloud services and artificial intelligence, thus competing with Amazon Web Services and Microsoft’s Azure services.
Investor pondered
Oracle has solidified its position, which for this company means security, but also boring boomer-ness. The company has long managed to control a significant market share, especially among large enterprises, aided by a broad customer base, robust technological expertise, and a diverse product portfolio.
In recent years, Oracle has made significant investments in cloud services and artificial intelligence, like “everyone” :D. This shift has been a response to the changing market situation and increasing pressure from competitors, and it doesn’t make me cheer, because what else can one expect. Oracle’s cloud services offer companies flexible and scalable solutions that enable digital transformation.
The company has delivered stable growth, and it may continue to receive support from cloud services and artificial intelligence, well… on the other hand, competitors might get even more help from these, so what will happen to this boomer company. 
Verneriekalaiset (Verneriekalaiset) appreciate the dividend offered by the company, but let’s leave it at that.
A broad product portfolio protects the company from industry-related risks and enables growth in various market segments. Furthermore, it has reportedly done quite well against its big competitors, but perhaps the economies of scale will put even smaller companies under. Oracle is still seen to have some technological advantage, but I can’t say how the company will fare in terms of AI. On the other hand, according to Larry Ellison, the AI market is growing tremendously, and developing top models in the field is extremely expensive – about 100 billion dollars at least over the next 4-5 years. Only a few companies have the opportunity to compete in this field. In addition, specialized models are being developed, such as those for cancer detection, which utilize, for example, biopsies and certain imaging methods. According to Ellison, AI development is not slowing down; it is a continuous battle for technical supremacy that will last at least the next 5-10 years, and the market will only continue to grow.
Indeed, it has done well against its big competitors, but how against AI-renowned Amazon Web Services and Microsoft? It feels like the opportunities are also big risks.
In short, Oracle is a technology company that has long managed to adapt to a changing market environment. The company’s long experience, broad product portfolio, and investments in cloud services make it interesting to some who are looking for stable growth and dividends.
Fresh reading material and light analysis of the company:
https://x.com/EconomyApp/status/1833245033321168924
More reading
10.9.2024
P/E
38.96
P/B
44.29
EV/EBITDA
21.52
Dividend yield
1.03
