Oracle ORCL recently announced that it is making the design system and platform powering its applications available to customers and partners, to extend its Oracle Business Applications.
This would enable organizations to leverage Redwood UX components, advanced technologies such as search, self-learning recommendations and conversational experiences, as well as telemetry and low-code development tools, to quickly and easily deliver secure apps that complement and seamlessly integrate with Oracle’s complete suite of cloud applications.
The business applications will allow customers and partners to access the same tools that Oracle’s development organization uses, thus enabling them to extend and personalize the applications to fit their unique needs. This will enable enterprise developers to quickly and swiftly create self-improving apps that could seamlessly integrate with their existing Oracle applications.
Oracle Strengthens its Applications to Boost Growth
Oracle Cloud Applications provide a customer with all the features needed to optimize business, make faster and better decisions, and outpace change. It also provides choice and flexibility as to when and how they can deploy Oracle applications and infrastructure technologies.
This is helping Oracle to gain traction with users as recently Unilever integrated a few of their Oracle Fusion Applications with the autonomous database to build a next-generation super secure, super agile platform. The application subscription revenues, which include support, were $4 billion, up 37% in constant currency in first-quarter fiscal 2023.
The E-Business Suite, which is an integrated set of Oracle’s business applications, has become the company’s major product line. The Oracle E-Business Suite 12.2 is adding new capabilities for users as it is now delivering ongoing applications and underlying technology stack updates without requiring a major upgrade and also providing long-term support with Premier Support committed through at least 2033.
Oracle is making enhancements to ensure that Oracle E-Business Suite can fully leverage Oracle Cloud Infrastructure and can coexist effectively with complementary Oracle SaaS applications.
Oracle also unveiled a host of updates for its Oracle Fusion suite of enterprise applications. It added 15 baseline artificial intelligence models to Oracle Unity, a customer data platform inside Oracle Fusion Cloud Customer Experience.
The new AI models can predict behaviors and offer recommendations for users in consumer packaged goods, communications, financial services, health care, utilities and other industries.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
Besides developing its business applications, Oracle recently also announced a beta for the latest version of Oracle’s converged database. Oracle Database 23c Beta has new capabilities that seek to make SQL easier to use and adds JavaScript as a stored procedure language.
Oracle’s Cloud Business to Hinder Growth
Oracle is anticipating the revenues for second-quarter fiscal 2023 to grow from 21% to 23% in constant currency. Shares of Oracle have lost 24% year to date compared with the Zacks Computer and Technology Sector, which declined 35.6%.
Oracle is struggling to find stability in the cloud computing space as it had a late entry in it. The company faces tough competition from Microsoft MSFT, Amazon AMZN and Alphabet GOOGL, which have a high brand value in cloud services.
Microsoft’s Azure gears up for opening five data centers in the APAC region. In the fiscal fourth quarter of 2022, cloud services’ revenues jumped 40% year over year, driven by robust growth in consumption-based business.
Amazon continues to dominate the global cloud computing space on the back of an increasing number of availability zones and regions served by Amazon Web Services as it recently opened one in Bangkok, Thailand.
Alphabet’s Google Cloud services have been growing investments in infrastructure, security, data management, analytics and AI, and are expanding its footprint worldwide as the company is about to open a data center in Japan in 2023, marking its third such establishment in Asia.
To make a renowned space in cloud computing and catch up with its competitors, Oracle, which currently has a Zacks Rank #5 (Strong Sell), has been making significant investments in acquisitions. However, as the SaaS market is getting overcrowded, these acquisitions may not perform as per company expectations, which will hurt profitability even further.
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