Taking a page out of the IBM playbook, the company is focusing on long-term service contracts for its software as well as cloud computing solutions. I see this leading to much smoother revenue and profit streams in the future. The company itself aims to boost service revenue from a current 21% of the sales mix to more than 25% within three years.
Oracle Corporation (NASDAQ:ORCL) has always been the silent success. With another solid quarter in the books for Oracle Corporation (NASDAQ:ORCL), the company is still finding it hard to dispel market concerns about its ability to fend off increased competition.
The company reported a 3% increase in revenue reaching $9.1 billion. Part of this was due to the software licenses and subscriptions which have performed exceptionally well – soaring 17% year-over-year. Oracle Corporation (NASDAQ:ORCL)’s strong cash position, deep market penetration and innovative strategies are what puts it on top.
Moreover, while other companies focus on offering a cloud computing product (which, stand alone, is seen by some as limiting), Oracle Corporation (NASDAQ:ORCL) offers support to other businesses through back end, database structuring and implementation. As it stands, there is no other name that ties in all of the cloud benefits and data analytics together as Oracle. That being said all cloud solutions have to deal with database structure and implementation. Oracle the leader in the field is one of only a few select firms who can do this and do this well. With the growing cloud industry, Oracle Corporation (NASDAQ:ORCL) is perfectly positioned for the future growth and maintenance of these required databases.
PC sales keep declining. Consumer demands have shifted the technology industry towards mobile devices. In fact, tablets are expected to grow by over 60%, smartphones by about 25% while PCs/laptops will remain flat at best, and at worst, drop drastically.
In addition to this dismal news, Windows 8 is not selling well. It was hoped that Windows 8 operating system would revitalize PC sales and help spark a new upgrade cycle. However, Windows 8 has failed to meet expectations as users have been somewhat confused with the new and unlabeled layout.
With all that, Microsoft Corporation (NASDAQ:MSFT) is still performing. This is because it spreads its software on multiple levels, diverse platforms, and has created its own option for access any time, any where. It’s hefty, ongoing investment in Office 365 — the online edition of its productivity suite — is a testament to how fast cloud computing services have caught on, and how the company plans to stay competitive. With Office 365 moving to the cloud Microsoft Corporation (NASDAQ:MSFT) in the future will see a reduction in production costs for the software as well as tapping into the cloud industry. Microsoft Corporation (NASDAQ:MSFT) office is the most widely used office software in the world and moving to the cloud will provide a nice addition to the overall bottom line for the firm as costs are reduced for production.
These four companies are all good looks for investors because all have stood the test of time, and all have positioned themselves for future profitability through cloud computing. Cloud computing is the next big thing and is ever changing. These long standing firms are all positioned to profit from them in the near future.
The article 4 Tech Stocks in the Cloud That Are Buys originally appeared on Fool.com is written by Casey Walters.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
