Software Giant, Oracle to Produce Blockchain Products

All News All News Except Press Releases Blockchain IoT

Oracle Corp. will release its blockchain software in May 2018, according to an article in Bloomberg. The company will provide their blockchain product as a platform-as-a-service by the end of the month, followed by a decentralized ledger-based application in June 2018, according to Thomas Kurian, president of product development. This plan would bring the number 2 software company in the world into the realm of decentralized and immutable data storage, as an alternative to centralized storage in a traditional database, and cloud computing.

Oracle is currently working with Banco de Chile to post inter-bank transactions on a blockchain, using Hyperledger. They are also working with the government of Nigeria on a blockchain project to document customs and import duties. In addition to banks and government agencies, Oracle plans to promote its products to pharmaceutical companies to track and locate medications for recalls and other reasons.

Oracle currently has 430,000 customers in 175 countries. Their capabilities include software-as-a-service (SaaS), platform as a service, infrastructure as a service, and data as a service. The company provides enterprise level cloud computing including new cloud deployments, legacy environments and hybrid implementations. They offer intelligent cloud applications and an integrated cloud platform that enables users to develop, extend, connect and secure cloud applications. Their open platform also enables developers to create applications. Most importantly in the case of blockchain and distributed ledger technology, Oracle is known for producing emerging technologies for business. These include AI, machine learning, augmented reality, Internet of Things (IoT), and human interface technologies.

Delving into blockchain technology is a logical fit for a company like Oracle, but it is important to keep in mind that the public company has stock holders. Presently, Oracle Corporation (NASDAQ:ORCL) stock is being faced with a number of problems, according to Yahoo Finance. Their cloud business is in the middle of a transition, which is going slower than anticipated, according to Yahoo. The stock is down 15% from its 52-week high and has the possibility of dropping further.

On the positive side, Oracle Cloud grew 32% year-over-year last quarter. Revenue was negative at that time, but Oracle Cloud does now appear to be growing its revenue. Margins are also up 150 basis points year-to-date, with expansion planned for the near future.

Oracle’s stock price is currently $45, which is almost exactly the same as its $45 stock price in May 2017. Analysts suggest that it’s moving sideways because Oracle Cloud isn’t as robust a platform as advertised. Clearly, the hope is that bringing blockchain technology into the fold will spark a growth phase for the stock.

Besides the blockchain move, Oracle is also offering free platinum-level support services for Fusion Cloud applications, according to a press release. CEO Mark Hurd revealed new offerings including Fusion ERP, EPM, HCM, Supply Chain, Manufacturing, Sales and Service.

Over the next two months, we will see how the DLT and blockchain technology will be integrated into their current platform. Ultimately this shouldn’t be a major complication. Blockchain is more or less just a new way to store the data.

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