The 3 Most Important Product Segments for Oracle

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Oracle ( ORCL ) is one of the largest software player in the world, and competes with SAP ( SAP ), Microsoft ( MSFT ) and IBM ( IBM ) in this market. After acquiring Sun Microsystems in 2010, Oracle became a hardware player as well with products pertaining to enterprise servers and storage hardware business. It competes mainly with IBM and HP ( HPQ ) in the hardware business. Here we will analyze the three most important segments for Oracle and the value that each contributes to our $38.16 price estimate for Oracle stock . Our price estimate stands about 20% above market price.

The 3 Most Important Product Segments for Oracle

1) Database software - represents 37% of the company's stock value

Database is a data storage mechanism, which stores data logically and physically in the form of data files. Front-end applications access the database to display data online. Oracle is the largest player in the database software market with a market share of close to 50%. See the top forecasts for database software.

2) Middleware software - 25%

Middleware is a portfolio of software products used to build and deploy software applications. Oracle sells its suite of middleware products under the brand name "Oracle Fusion Middleware." It acts as an interface between front-end applications like web-based applications-and back-end applications like the database. See the top forecasts for middleware software.

3) Application software - 24%

Oracle applications are the applications used by enterprises for employing cost-cutting mechanisms and increasing sales. These include applications like customer relationship management (CRM), enterprise resource planning (ERP) and product lifecycle management (PLM). See the top forecasts for applications software.

See our full analysis and $38.16 price estimate for Oracle stock



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: HPQ , IBM , MSFT , ORCL , SAP

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