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Why invest in Oracle

Oracle is a good investment. This is not my advice to you, but rather the gist of an article by Tim Beyers from the Motley Fool.

To explain why Oracle is a good investment, Tim debunks the three so-called threats to Oracle that have pervaded the market’s consciousness. To summarize:

Threat 1: Acquisition risk is too great

The conventional wisdom says that Oracle can’t possibly integrate all of these firms into a coherent whole. That could be true, but history says otherwise. The database king has bought untold numbers of software companies and successfully integrated them into its business.

Threat 2: Database sales are slowing

The truth is that Oracle’s database business is changing for the better. More and more firms are turning to open-source alternatives. Take the Innobase acquisition. Guess what that means? The minute you start looking at open-source options, Oracle is there waiting. Total dollar volume isn’t yet the proper measure of success. Customer count is. And with its recent acquisitions, Oracle has grown its customer count substantially.

Threat 3: Oracle has too many tough rivals

Oracle’s main rival is SAP. SAP is vulnerable. It has no database, and it has switched database partners more often than Colin Farrell at a celebrity speed-dating contest. Today, Oracle is the world record holder for pulling data from, and publishing to, SAP’s Business Information Warehouse. SAP is going to have a heck of a time extracting Oracle from its user base. Besides Microsoft, Oracle is the only firm on the planet that can offer a business every kind of software it needs to run a business.

OK, now I just need some extra cash in my brokerage account.

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