The in-memory market is a vast field, attracting businesses and organizations that want network fabric to run 10-20 times faster than commodity hardware. Companies can gain top-line revenue and growth opportunities if their solutions can transform batch processing to real-time and shorten response time with improved rendering.
Oracle’s new In-Memory Products
Oracle Corporation (NASDAQ:ORCL) has combined many technologies to improve the competitive edge of its new products. Applications like the E-Business Suite In-Memory Cost Management and PeopleSoft In-Memory Project Discovery help organizations to complete load runs faster and discover new insights for efficiencies that would have been previously overlooked. To come this far, Oracle Corporation (NASDAQ:ORCL) had to leverage DRAM, flash memory, and network fabric to change business dynamics and reduce corporate costs.
While working on the applications, Oracle had to look into the issue of run-time. The company took steps to tackle this challenge. The resulting solutions make it no longer a problem, as executive can generate data crunching analysis in near real-time to make sound business decisions.
In-Memory Sector Growth
The growth in the global in-memory market will help Oracle to find buyers for its products and make good sales. Market Research Media, a respected firm, predicted that high-performance computing solutions, which include in-memory computing, will hit $220 billion by 2020.
While competitors such as SAP AG (ADR) (NYSE:SAP) have a sizable share of the in-memory market, if Oracle’s new applications make a splash, the company won’t have a problem of making a strong organic growth in the sector. Oracle could hire more people so that its increased workforce can match growth. This could provide a way to coax workers from competitors, since there is virtually no difference in the staff of telecom companies in the in-memory sector.
Software Division Growth
In the fiscal 2013 Q3 results, Oracle reported that software licenses updates and product support revenues went up 7% to $4.3 billion. Compared to peers SAP AG (ADR) (NYSE:SAP), which reported an 11% growth in non-IFRS software and software-related revenue, and Hewlett Packard Company (NYSE:HPQ), which reported a 2% decline in software revenue, Oracle is not doing badly.
Determined to change business dynamics, Oracle also released products like PeopleSoft In-Memory Labor Rules and Monitoring, PeopleSoft In-Memory Financial Allocations Analyzer, J.D. Edwards Enterprise One In-Memory Project Portfolio Management, and others. In comparison, SAP AG (ADR) (NYSE:SAP) products using in-memory technology were CRM Segmentation, By Design, and Enterprise Search.
Players
Investors should closely watch the in-memory market, as demand for its products is growing at a steady pace. SAP AG (ADR) (NYSE:SAP), Hewlett Packard Company (NYSE:HPQ), and Oracle all provide in-memory products and services, along with other business solutions, including cloud computing and data storage.
Oracle and Hewlett Packard have a slight advantage over SAP AG (ADR) (NYSE:SAP). Oracle has $11.05 billion in free cash – Hewlett Packard has $10.32 billion. Free cash gives organizations opportunity to market, research, develop new products, manage their debts, and expand. This means that SAP AG (ADR) (NYSE:SAP) ($6.60 billion in free cash) will not be able to overwhelm Oracle and Hewlett Packard. However, investors should not ignore SAP AG (ADR) (NYSE:SAP)’s clout because it has developed the expertise needed to compete with the two giants in the sector. SAP’s HANA is an in-memory platform for real-time enterprise. Its revenue tripled year-on-year, contributing $112.37 million to SAP’s software revenue this quarter. Hewlett Packard recently launched its Center of Excellence In-Memory product.
Conclusion
Focused on making companies have a foundation for real-time business, SAP, in similar fashion to Oracle, has managed to increase sales in a tough environment. Combined with its strong in-memory product, SAP has become Oracle’s competitor in the sector, as both companies seek to gain greater market share.
The article Oracle Looks to In-Memory Sector for Increased Sales originally appeared on Fool.com and is written by Adetokunbo Abiola.
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