{"id":23272,"date":"2024-03-27T23:56:00","date_gmt":"2024-03-27T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=23272"},"modified":"2025-11-21T11:15:55","modified_gmt":"2025-11-21T03:15:55","slug":"oracle-db-dominator","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/","title":{"rendered":"How does database monopoly Oracle make money? What are the prospects?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#About_Oracle_in_my_books\" >About Oracle in my books<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Company_Profile\" >Company Profile<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Short_introduction\" >Short introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Main_product_lines\" >Main product lines<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Servers_and_tools\" >Servers and tools<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Application_software\" >Application software<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Market_share\" >Market share<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Cloud_computing\" >Cloud computing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#The_past\" >The past<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#At_present\" >At present<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Future\" >Future<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Well-known_customers\" >Well-known customers<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Important_acquisitions\" >Important acquisitions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Cerner\" >Cerner<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Netsuite\" >Netsuite<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Aconex\" >Aconex<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Datalogix\" >Datalogix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#MICROS_Systems\" >MICROS Systems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Acme_Packet\" >Acme Packet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Sun_Microsystems\" >Sun Microsystems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#BEA_Systems\" >BEA Systems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Hyperion\" >Hyperion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Siebel\" >Siebel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#PeopleSoft\" >PeopleSoft<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Performance_over_the_past_twenty_years\" >Performance over the past twenty years<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Company_strategy\" >Company strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Operating_performance\" >Operating performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Shareholder_rewarding_programs\" >Shareholder rewarding programs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Return_to_investors\" >Return to investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Stock_buyback\" >Stock buyback<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Pay_dividends\" >Pay dividends<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Future_prospects\" >Future prospects<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Determined_by_cloud\" >Determined by cloud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Strong_free_cash_flow\" >Strong free cash flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Attractive_valuation\" >Attractive valuation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/#Related_article\" >Related article<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"About_Oracle_in_my_books\"><\/span>About Oracle in my books<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 2-3<\/li>\n\n\n\n<li>Section 3-3 provides an in-depth analysis of the company Oracle.<\/li>\n<\/ul>\n\n\n\n<p>And the book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of 10 Baggers<\/a>&#8220;:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 1-3<\/li>\n\n\n\n<li>Section 3-2<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Profile\"><\/span>Company Profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Short_introduction\"><\/span>Short introduction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 1977, Lawrence Ellison, Bob Miner, and Ed Oates founded a company called Software Development Laboratories (SDL) in California. In 1978, the first version of the Oracle system (Oracle) written in a combinatorial language was developed. In 1979, the company changed its name to Relational Software, Inc. (RSI). In 1982, the Oracle system was launched and the company was renamed Oracle Systems Corporation.<\/p>\n\n\n\n<p>It made less than one million US dollars in the first year, but it rose rapidly in 10 years, and its market value reached US$190 billion in 2017.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_product_lines\"><\/span>Main product lines<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Oracle&#8217;s main products are currently divided into the following two categories:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Servers_and_tools\"><\/span>Servers and tools<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Main competitors: IBM and Microsoft<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Database server: Oracle 12c<\/li>\n\n\n\n<li>Application Server: Oracle WebLogic Application Server<\/li>\n\n\n\n<li>Development tools: Oracle JDeveloper, Oracle Designer, Oracle Developer, etc.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_software\"><\/span>Application software<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Main competitor: SAP<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The application software suite and the Oracle Fusion Application launched at the Oracle OpenWorld Conference on September 20, 2010, are a comprehensive modular application suite.<\/li>\n\n\n\n<li>Enterprise Resource Planning (ERP) software: More than 10 years old. In 2005, the company acquired PeopleSoft Software, which develops enterprise software, to enhance its competitiveness in this area.<\/li>\n\n\n\n<li>Customer Relationship Management (CRM) software: This software has been developed since 1998. In 2005, it acquired Siebel Software Company (Siebel), which developed customer relationship management software.<\/li>\n\n\n\n<li>Human Resource Management (HCM): The main product is the acquired PeopleSoft software.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_share\"><\/span>Market share<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Currently, Oracle&#8217;s industry-leading position in database software is solid. According to industry research firm Gartner, its market share in database management systems will be 17% in 2023. But Oracle still lags far behind its biggest competitors in cloud infrastructure. In 2023, Amazon controlled 39% of the market, followed by Microsoft (23%) and Google (8.2%), with Oracle accounting for only 1.4%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cloud_computing\"><\/span>Cloud computing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_past\"><\/span>The past<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Oracle (ticker: ORCL), the world&#8217;s second largest software company, has experienced stagnant revenue and stock price in recent years. The fundamental reason is that Oracle has not been successful in cloud-based products, and its products have not been able to attract customers. Naturally, they cannot Attract investors\u2019 favor.<\/p>\n\n\n\n<p>Oracle 20 years ago was the second largest software giant on par with Microsoft. What is even more convincing is that the constituent stocks of the new software company added to the Dow Jones Industrial Average Index in August 2020 are the pioneers in the cloud software industry, Salesforce (ticker: CRM), not Oracle.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"At_present\"><\/span>At present<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Investors should keep an eye on the growth of Oracle&#8217;s cloud-based services, which accounted for 37% of revenue in its latest quarter. Growth in this high-profile segment, currently driven by OCI (Oracle Cloud Infrastructure) services, NetSuite and Fusion ERP (Enterprise Resource Platform) services, and Cerner&#8217;s healthcare cloud services, will need to continue to offset the impact of its slower growth. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Future\"><\/span>Future<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Oracle still faces stiff competition from public cloud leaders such as Amazon Web Services (AWS), Microsoft Azure and Alphabet&#8217;s Google Cloud Platform (GCP). But on the bright side, the global cloud computing market is still likely to expand at a compound annual growth rate of 17% from 2023 to 2032, according to Precedence Research, so these market leaders may have plenty of room to grow, while They won&#8217;t trample on each other.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Well-known_customers\"><\/span>Well-known customers <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Because Oracle started late in cloud computing, it has lost a lot of opportunities. However, OCI (Oracle Cloud Infrastructure) has still acquired some well-known customers, including TikTok, the international version of Douyin, which was forced to be hosted by Oracle in the United States, Musk&#8217;s X.ai company, Microsoft, Zoom, McDonald&#8217;s, Albertsons, and Humana , Xactly and other famous customers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_acquisitions\"><\/span>Important acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cerner\"><\/span>Cerner<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In January 2022, Oracle announced that it would acquire medical digital service provider Cerner for US$28.3 billion. Senna has more than 40 years of experience in digitizing electronic health records, providing digital information systems for hospitals and health systems, and will serve as Oracle&#8217;s core asset in the healthcare field. This is the largest merger and acquisition in Oracle&#8217;s history.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Netsuite\"><\/span>Netsuite<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In July 2019, Oracle will acquire Netsuite for US$9.3 billion. It is a cloud computing company that provides software and services for enterprise financial management, operations and customer relations. Netsuite was launched in 1998 by former Oracle executive Evan Goldberg and Oracle founder Ellison. Ellison already owns 61% of the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Aconex\"><\/span>Aconex<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Acquired by Oracle in 2017, Aconex is a leader in SaaS-based construction project management.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Datalogix\"><\/span>Datalogix<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Acquired by Oracle in 2014, Datalogix is \u200b\u200ba well-known manufacturer of data brokerage and digital marketing solutions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MICROS_Systems\"><\/span>MICROS Systems<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Oracle&#8217;s $5.3 billion acquisition of MICROS in 2014 allowed Oracle to expand into integrated software and hardware solutions for the hotel and retail industries. MICROS&#8217; main business is to provide enterprise applications for restaurants, hotels, casinos and other entertainment companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Acme_Packet\"><\/span>Acme Packet<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Oracle signed a deal in 2013 to acquire Acme Packet for $2.1 billion. Acme Packet produces connection border controllers, secure gateways, and session routing agents that enable secure and reliable communication across devices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sun_Microsystems\"><\/span>Sun Microsystems<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2010, Oracle acquired Sun Microsystems, a well-known Silicon Valley manufacturer that also owns computer servers, storage, networks, Java, MySQL databases, software and services, for US$7.4 billion. This was an important merger and acquisition in the history of Oracle one.<\/p>\n\n\n\n<p>Sun helped develop high-performance infrastructure for Oracle Database and the first Oracle Exalogic Elastic Cloud. Sun&#8217;s portfolio of personal software development products has expanded under Oracle&#8217;s guidance with the release of Oracle Solaris, MySQL and Java.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BEA_Systems\"><\/span>BEA Systems<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2008, Oracle acquired BEA Systems, an enterprise applications and WebLogic middleware company, for $8.5 billion. BEA Systems&#8217; three major product lines are the middleware software platform Tuxedo, the enterprise infrastructure platform and the service-oriented architecture platform.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hyperion\"><\/span>Hyperion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Hyperion, a leader in enterprise performance management, was acquired by Oracle for $3.3 billion in 2007. It provides enterprise resource planning solutions, financial modules and reporting products. The merger of the two companies resulted in Oracle Business Intelligence Enterprise Edition.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Siebel\"><\/span>Siebel<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2005, Oracle spent $5.85 billion to acquire its main competitor in the sales automation process industry. Siebel&#8217;s customer relationship management system (CRM) provides solutions for more than 20 industries and has been integrated into Oracle&#8217;s customer experience product portfolio. This is one of the important mergers and acquisitions in Oracle&#8217;s history.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PeopleSoft\"><\/span>PeopleSoft<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>PeopleSoft offers a broad range of financial and business applications to meet the business needs of a range of industries. In 2005, Oracle conducted a hostile takeover of PeopleSoft at a cost of US$10.3 billion. PeopleSoft created modules including human capital management, financial management, supplier relationship management, enterprise service automation, supply chain management and PeopleTools, which was one of the most important acquisitions in Oracle&#8217;s history.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Performance_over_the_past_twenty_years\"><\/span>Performance over the past twenty years<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_strategy\"><\/span>Company strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Over the past three decades, Oracle has promoted three major strategies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dominant position in the global database software market.<\/li>\n\n\n\n<li>Expand its ecosystem through large-scale acquisitions.<\/li>\n\n\n\n<li>Bad business decisions: including the mistaken bet of trying to replace personal computers with networked computers and missing the big trend of software cloud computing.<\/li>\n<\/ul>\n\n\n\n<p>This last point has created a serious disconnect between the former second largest software company and the mainstream software market, which has also affected Oracle&#8217;s stock price performance in the past two decades.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operating_performance\"><\/span>Operating performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Oracle&#8217;s revenue grew at a compound annual growth rate of just 3% from fiscal 2013 to fiscal 2023, while its continued buybacks helped its adjusted earnings per share (EPS) grow at a compound annual rate of 7%.<\/p>\n\n\n\n<p>Oracle&#8217;s revenue grow only 4% in fiscal 2021 (ending May 2021), 5% in fiscal 2022, and 7% in fiscal 2023 (excluding the acquisition of healthcare giant Cerner).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shareholder_rewarding_programs\"><\/span>Shareholder rewarding programs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Return_to_investors\"><\/span>Return to investors<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Oracle&#8217;s strategies that are beneficial to shareholders make it a rare technology stock that is mature and stable and focuses on shareholder rewarding plans. The company has also been steadily profitable, generated a lot of cash, and continues to buy back its stock.<\/p>\n\n\n\n<p>Oracle repurchase $600 million of stock in the first half of fiscal 2024 while paying $2.2 billion in dividends.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_buyback\"><\/span>Stock buyback<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Oracle is a steadily profitable company that generates large amounts of cash and continues to buy back its stock. Over the past three decades, Oracle has repurchased more than half of its outstanding shares.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pay_dividends\"><\/span>Pay dividends<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Oracle began paying dividends in 2009, and the current dividend yield is about 1.5%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Future_prospects\"><\/span>Future prospects<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Determined_by_cloud\"><\/span>Determined by cloud <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Much of Oracle&#8217;s growth in recent years has been driven by its cloud-based software and infrastructure services, which accounted for 37% of its most recent quarterly revenue. Its cloud growth has slowed due to macro headwinds over the past year, but that has still offset slower expansion in its traditional on-site hardware and software businesses.<\/p>\n\n\n\n<p>From fiscal 2023 to fiscal 2026, analysts estimate Oracle&#8217;s revenue will grow at a compound annual growth rate of 9% and its adjusted earnings per share will grow at a compound annual growth rate of 33%. But there are conditions: Oracle must continue to expand cloud services, and the overall economy must gradually return to the level before the epidemic and interest rate increases.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strong_free_cash_flow\"><\/span>Strong free cash flow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Operating margins also continued to expand as Oracle expands its cloud business, streamlines Cerner&#8217;s low-margin business and executes other cost-cutting measures. Its trailing 12-month free cash flow grew 20% year over year to $10.1 billion as of the end of the second quarter of fiscal 2024. Strong cash flow growth allowed it to do stock repurchase and pay dividends.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Attractive_valuation\"><\/span>Attractive valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Analysts expect Oracle&#8217;s revenue and adjusted earnings per share to grow 8% in 2023. Its shares still appear to be fairly valued at 18 times forward earnings, and its forward yield is a respectable 1.4%. Oracle may not impress growth, value, or income investors anytime soon, but its stability makes it an attractive safe-haven stock.<\/p>\n\n\n\n<p>Oracle&#8217;s growth rate is less than impressive, but as long as interest rates remain high in the current tough macro environment, it should remain a better investment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since Oracle&#8217;s market capitalization is already huge and its revenue figures are among the top in the software industry, if you want to make the stock price rise, unless you find the next product line that drives revenue growth, you will have to rely on the company&#8217;s existing product lines for decades. , there is no possibility of any growth in revenue.<\/p>\n\n\n\n<p>But Oracle clings to the two major companies of database and enterprise back-end systems. It has been struggling to survive and has missed the cloud era. Now it is very difficult to catch up. Not to mention artificial intelligence, a new technology trend that is newer than the cloud and requires faster response.<\/p>\n\n\n\n<p>On December 12, 2023, Oracle announced that its third-quarter financial results were not as good as expected. Revenue grew only 5% to US$12.94 billion; the revenue from cloud services and licensing support only grew 12% year-on-year, and the growth rate significantly lagged behind the data of cloud computing vendors such as Amazon, Microsoft and Alphabet. As a result, the stock price fell 12.4% to $100.81 that day, falling to the lowest closing price since October and setting the second largest single-day decline this century.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"216\" height=\"96\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2023\/12\/o.jpg\" alt=\"Oracle\" class=\"wp-image-23273\"\/><figcaption class=\"wp-element-caption\">credit: wiki<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_article\"><\/span>Related article<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/11\/20\/oracle-growth-driver\/\">Oracle growth drivers in the future and the biggest investment risk: TikTok US, Data center, AI database<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does database monopoly Oracle make money? What are the prospects?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/20\/oracles-oci-ai\/\">Oracle\u2019s cloud computing and AI finally recognized<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/15\/oligopoly-enterprise\/\">The world&#8217;s most well-known oligopoly companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/08\/deepseek-rout\/\">DeepSeek routed the global AI and stock<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/12\/chinese-ai-companies\/\">Chinese AI progress and top companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/02\/ai-agent-software-trend\/\">AI Agent will be the next wave of software industry<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/23\/erp-oligopoly-sap\/\">ERP oligopoly SAP succeeds in AI and cloud transformation, How SAP makes money?<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/11\/23\/how-does-mongodb-make-money\/\">How does the cloud-native file database MongoDB make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/10\/27\/how-servicenow-make-money\/\">How ServiceNow, corp worflow, best share performing in past decade, makes money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/07\/how-microsoft-makes-money-where-is-the-future\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Microsoft makes money? Where is the future?<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/26\/overlord-of-cloud-computing\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;Microsoft, the dominant overlord of cloud computing<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/16\/ibm-cloud\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does IBM make money? What&#8217;s next?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/22\/salesforce-crm-cloud\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Salesforce make money? Why is it so successful?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">What company is Snowflake owned by Buffett? Where is its value?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/23\/snowflakes-competitiveness\/\">Deep dive on Snowflake&#8217;s competitiveness<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-admin\/post.php?post=1600&amp;action=edit\">Five technology stocks for better getting started in US stocks<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/04\/value-and-problem-palantir\/\">The value of Palantir, pros and cons of Palantir investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/14\/palantir-introduction\/\">What kind of company is Palantir?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Missing out on cloud computing has created a serious disconnect between the former second-largest software company and the mainstream software market, which has also affected Oracle&#8217;s stock price performance in the past two decades.<\/p>\n","protected":false},"author":1,"featured_media":23273,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[122,104,127],"tags":[227,379,97,95,168,3,339,333],"class_list":["post-23272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-software","category-artificial-intelligence","category-cloud-computing","tag-amzn","tag-crm","tag-goog","tag-googl","tag-ibm","tag-msft","tag-orcl","tag-sap"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=23272"}],"version-history":[{"count":34,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23272\/revisions"}],"predecessor-version":[{"id":40102,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23272\/revisions\/40102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/23273"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=23272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=23272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=23272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}