Analysts at Credit Suisse Equity Research believe that the latest partnership between Oracle Corporation (NASDAQ:ORCL) and Salesforce.com, inc. (NYSE:CRM) in cloud computing reflects that both companies are targeting Workday Inc (NYSE:WDAY).
Salesforce Might Muscle Workday Aside
Salesforce.com, inc. (NYSE:CRM) stated it would standardize on Oracle’s Linux, Database 12c, and Exadata. According to Credit Suisse analysts, the plan would result to the largest deployments of Linux and Exadata, which adds to their positive view on Engineered Systems.
The two companies also announced the integration of Oracle’s HR software -Fusion Human Capital Management (HCM) & Financial applications with Salesforce.com’s CRM solutions. The analysts believed that the partnership is beneficial for both companies due to the following reasons:
- Salesforce.com, inc. (NYSE:CRM) could pitch a pseudo-pre integrated suite across financials, HCM and CRM with Oracle vs. a pure DIY approach on integrating such components;
- Oracle Corporation (NASDAQ:ORCL) will be able to cross sell Fusion HCM and Financial cloud application to all Salesforce.com customers
On the other hand, Credit Suisse analysts opined that Oracle may have given some ground to Salesforce.com, inc. (NYSE:CRM) to target Workday (NYSE:WDAY) because it can now pitch pre-integrated suite across financials, HCM, & CRM with Oracle.
Oracle Also Inking A Deal With Microsoft
Oracle Corporation (NASDAQ:ORCL) also inked a partnership with Microsoft Corporation (NASDAQ:MSFT). The company agreed to support Windows server Hyper V and Windows Azure with Oracle software including Java, Oracle Database and Oracle WebLogic. Credit Suisse analysts perceive that this agreement would negatively affect VMware, Inc (NYSE:VMW) and (NYSE:RHT).
In addition, the analysts also cited that Oracle Corporation (NASDAQ:ORCL)'s partnership integrate Fusion HCM application with NetSuite sales, financial, and fulfilment is good because of the increasing popularity of two-tier ERP systems among businesses.
Furthermore, the analysts emphasized that they continue to rate Oracle Corporation (NASDAQ:ORCL) as their top large-cap pick despite its recent inconsistent quarter-to-quarter execution. Some of the near-term and long-term drivers identified by the analysts include the reduction n negative impact from changes to its sales force in fiscal 2012 and 2013, as well as customer adoption of the M5 and T5 processors and related servers. They also cited the introduction of Oracle Database 12c and the increasing consumer adoption of the Oracle Fusion applications.