Oracle may have a ways to go before it threatens the cloud industry’s Big Three, but the company is poised to make big gains.
According to Seeking Alpha, analyst John DiFucci sent a note to clients after meeting with Oracle Cloud’s leadership. DiFucci came away from the meeting impressed with what Oracle has to offer, especially with the company’s ability to build on its comprehensive suite of tech solutions. As a result, Oracle is in a position to deliver cloud services at “significantly” less cost than its larger competitors while offering twice the performance.
“While there doesn’t seem to be a single silver bullet, there may be hundreds of them, as Oracle has built upon the successes and shortfalls of those that came before it, while infusing decades of technology innovation that is the core of this company,” DiFucci wrote in an investor note.
“If it plays out as we expect, and given the ratable model, we’d expect the future to bode well for [Oracle Cloud Infrastructure] over time, … and soon,” DiFucci added.
DiFucci’s analysis echoes that of Monness, Crespi, Hardt analyst Brian White, who similarly came to the conclusion that Oracle was poised to be 2023’s big cloud winner:
“In our view, no company is immune to an economic downturn; however, we believe the tailwind of the Oracle Cloud and the stock’s modest valuation provide some downside protection,” White wrote to clients.