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The Future of Oracle

This past Friday Danielle Wessler, a member of our NYC software development recruitment team, led an engaging discussion around technology giant Oracle, one of the world’s largest software manufacturers. The discussion came at an appropriately busy news week for the tech giant with the wrap-up of Oracle OpenWorld, their large annual event for customers and technologists, as well as the company-sponsored sailing team taking the win in the America’s Cup in San Francisco.

As the world’s third-largest software maker by revenue after Microsoft and IBM, Oracle has a diverse set of business models that has allowed for such lasting strength in the enterprise technology market. These range from marketing specialized computer hardware systems, B2B and B2C software products, database management systems, as well as managing the reference implementation of, and serving as the authorized support provider for, the Java development platform.

At first thought, Java would seem to be the fiscal backbone of Oracle’s business. The platform remains the foundation for virtually every type of networked application and is a global standard for development and delivering mobile applications, games, large-scale web experiences, and enterprise software / SaaS products. A large portion of the world’s most popular tech companies, from Amazon to Twitter, utilize proprietary and open-source Java technologies in their development efforts. Across Talener’s offices, the market for Java skills continue to be a hot recruitment area. However, widespread use of the open sourced software isn’t affecting Oracle’s bottom line. Where the company does profit is the expensive Java middleware server Oracle Weblogic and licensing agreements with larger companies like IBM that allow Java to be shipped with their servers.        

Many agree that Oracle’s next big opportunity is in the business of cloud services. Currently Oracle’s revenue growth in this particular silo may be tepid amongst competitors like Salesforce.com and Workday Inc., but executives continue to assert that they are poised to gain market share. One thing will be sure: Oracle’s success or failure will be dictated by their customer base, more of whom need effective platforms to access large-scale data.

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