Latest news with #Database
Yahoo
7 days ago
- Business
- Yahoo
Oracle: The ambition to grow into Cloud Infrastructure Giant
Investment Thesis Oracle can put its cloud infrastructure forward as a different, technical approach dedicated to actual problems of enterprises. Whereas other companies are trying to save money predominantly through sharing resources, Oracle's bare metal architecture actually provides the consistent performance companies require for their mission-critical applications. This technical advantage leads to both the power to set the price and customer loyalty, especially as companies migrate their most critical workloads to the cloud. Warning! GuruFocus has detected 7 Warning Signs with ORCL. Investment Upsides The Foundation: Autonomous Database Technology as the Game Changer Let's start with perhaps the most defining achievement of Oracle: the Autonomous Database. To flag the importance of the Autonomous Database it is imperative to know how conventional databases would operate. Database administrators spend numerous working hours just tuning the database performance up, applying security patches, and troubleshooting every issuequite similar to a pilot adjusting controls nonstop during a flight. Oracle's Autonomous Database is a genuine departure from the previous paradigm since it embeds the artificial intelligence even directly into the database engine. Imagine it like a shift from the manually operated machine to the fully automated self-drainer. The database itself goes on monitoring its performance by making adjustments in the memory allocation, optimizing the paths for the query execution as well as even installing security patches without any human supervision. This is not only automation but intelligent automation that learns from a given number of runs and becomes more efficient over time. The algorithms of the underlying machine learning constantly analyze the database operations reporting their findings to the administrator who in turn can apply the essential changes that he or she might have missed. The wizardry in technical ingenuity lies in the manner in which Oracle brought together years of expertise in database optimization and machine learning; the algorithms can be trained to predict performance problems and then, in a preventive way, deal with them before the application is affected. It results in a positive feedback loop: several organizations that adopt a particular new technology are then mutually more beneficial to each of them. As a result, Oracle benefits with a stable competitive advantage which is extremely hard for rival companies to repeat as it demands both the mastery of databases and the advanced machine learning competences. The impact on EPS In the conventional scenario, these databases need Database Administrators (DBAs) - a class of professionals that are highly skilled, tune performance, manage storage, handle backups, and optimize queries. A DBA is like a top-notch mechanic that specializes in keeping a race car in a high state of performance. Currently, Oracle is altering the idea of a database with their "Autonomous Database" technology, which is self-governing databases that use artificial intelligence to work many of the DBA functions without being attended by a person. This idea is similar to substituting a top-level mechanic with a suitable engineering system to find and fix faults without external support. In order to figure out how much the earnings impact of autonomous database technology would be, it is necessary to understand Oracle's customer base and usually existing costs of a DBA. Oracle has approximately 430,000 customers spread all around the world but not all of those customers are using the database products. Focusing on their database customers area, it is very likely that about 200,000-250,000 organizations of different sizes are part of this group. Here we have an instance of an interesting math problem. A proficient DBA generally costs a business around $80,000-$150,000 annually in salary, plus pricey benefits, thus making the overall cost reach approximately $120,000-$200,000 yearly. More extensive companies very often have a team of DBAs working in the same environment such as 5 to 10 members or maybe even more with quite a complex arrangement. Let's start with a conservative assumption. For the sake of the imagination, let Oracle just get some of the cost savings through the rise of the subscription fees for their autonomous database services. In addition to that, they may charge an extra 30,000 dollars a year referring to perhaps 25% of one DBA's total cost and if they do this with even 100,000 customers, which is hypothetical, the amount will generat3 billion dollars. Oracle's software charges very high gross margins usually 80% or more for the reason that the direct cost of customers being served is very little hence most of the additional revenue goes directly to the operating income. The assumption here is 3 billion additional revenues are made owing to the above-margin theory that takes 80% of its cost giving 2.4 billion operating income more. Oracle's share capital is nearly 2.7 billion as they have such a lot of outstanding shares. So $2.4 billion divided by 2.7 billion shares forms exactly $0.89 per share's additional earnings. But this assessment shows you should regard some crucial details. The process of transition is not that fast which in reality means the shift will be made gradually for years with the involvement of the customers applying autonomous database technology. The true strategic value may be quite higher than the direct calculation implies. By removing the DBA requirement, Oracle is propelling their database solutions to be more alluring to small businesses that were not able to previous lately afford the hiring of database professionals. Thus this could be the increment in their total market potential. Cloud Infrastructure: Rethinking the Architecture from the Ground Up The Oracle cloud infrastructure is a demonstration of how a breakthrough in basic premises rethink can create advantages. Most of the cloud providers use a virtualization layer that lets physical resources be shared between several clients; it is like an apartment building where tenants enter utilities. Practically, it is a cost-efficient but on the flip side, it can lead to performance inconsistencies, especially with enterprise applications demanding too much. Instead, Oracle offered a bare metal server as a solution by means of giving clients the opportunity to get a direct path to the physical hardware resources. This path appears to be like a rewire of branching into individual houses to each customer instead of apartments. The only difference here is that the dedicated hardware is housed in each customer's premises and runs at the same performance level, thus obviating the problem of the shared system. This choice of architecture is of great use since it deals with database workloads that are resource contention and network latency sensitive. The network infrastructure includes Remote Direct Memory Access technology, which makes it possible for servers to communicate with each other by directly accessing their memories and not going through traditional network protocols. Go ahead and visualize data centers with FBI express highways, with the prescribed mode transporting data only to specific destinations, hence, radically speeding up the data flow. There is a marketing implication of thisthat they are not only building greater efficiency in their own business but also creating a differentiated offering in the general market. In-Memory Computing: Transforming Data Processing Speed Oracle's in-memory database technology solves a pervasive problem in traditional computing: the vast discrepancy in speed between memory and storage. Traditional databases organize the data on disks, and even though they are very reliable, they operate thousands of times slower than memory. One can liken it to the difference between a library's interlibrary loan and a book that is on a shelf right next to you, in other words, the difference between borrowing a book from a library in your town and taking a cab to the library across town. Oracle's game plan is among other things, made up of getting the necessary data in front of users in seconds rather than hours, through the right use of high-speed memory. The new tech is deeply rooted in advanced compression algorithms that think of themselves as separate memory banks with a shared workload while still functioning fully. This format of specifying data types works like a better filing system which organizes information more accessibly but without any missing detail. The system continuously learns the data usage patterns and it dynamically recalibrates and optimizes the memory allocation according to the needs of the business. The algorithms create cash flow estimates by analyzing patterns in queries and data access frequencies before the demand arises, always securing instant availability. This basically sets up a system that not only optimizes itself automatically in the beginning but also leads to more of that intelligent behavior down the road, much like the librarian mastering the art of really knowing what books will be checked out the most. Understanding the predictive system in depth: The better estimating of cash flows goes hand in hand with the establishment of more reliable patterns of data that influence access. When the system knows what the financial situation looks like with a higher confidence, it can make better predictions about which supporting data you will need. Cash flow projections might say that we will be short by 3 months; the system might then proactively load information about available lines of credit, pending receivables to be factored, or historical data on similar situations. The reliability of cash flow estimates also affects the robustness of the prediction system as well. More correct financial forecasts lead to users behaving in a more predictable manner. When the users get to believe the cash flow data they stick to a more predictable analytical workflow that makes the system easily predict their next data need. Think of a practical example: if your cash flow model, for instance, shows a considerable amount of income from a major customer, then you might want to see the investment opportunities, debt payment schedules, or expansion project costs. The system would auto-load this relevant financial information. Alternatively, if cash flow estimates reveal the potential problems, it is likely that you would want to check accounts payable aging, credit facilities as well as cost reduction scenarios. Investment Downsides The Cloud Infrastructure Battleground: The most serious challenge for Oracle arises from the confrontation with the cloud-infrastructure behemoths, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. Just envisage this situation as a race where Oracle has started running several years behind its fellow runners who have created massive backlogs. AWS initiated the premise of the cloud and has since become the mammoth scaled with the superior infrastructure that is both developed over time and is laid out across the globe. Microsoft Azure exploits deep enterprise relationships along with the integration with Windows that has possessed corporate offices for decades. The scale challenge looms as the biggest contender. Imagine a situation where AWS distributes infrastructural costs across the millions of customers they have as a result of which they are achieving economies of scale that smaller competitors are finding tough to catch up with. It is akin to large factories being able to produce goods at a lower cost per unit than smaller factories, due to their size. Meanwhile, Google Cloud has the advanced artificial intelligence and the global network traffic originally built for consumer internet services that bring more complexity. Nevertheless, Oracle tackles these challenges with a radically different technological approach which desks configurally twisted ineffective into strengths of competitive advantage. Oracle is not just aiming for scale and cost efficiency but is switching their focus to delivering reliable performance that meets the specific needs of the enterprise. The bare metal cloud of theirs also is a provider of dedicated hardware resources thus abolishing the performance variability that is inevitable in shared virtualized environments. Just like a private highway provides a guarantee of the time needed for travel, which might be more expensive but is worth the cost. Oracle's cloud infrastructure is built on the latest networking technology that combines Remote Direct Memory Access capabilities and it has zero-latency communication between servers. This technology is highly tailored for high-performance workloads, where fractions of a second count, as is the case in the financial services' trading systems or analytics applications. Instead of competing in general-purpose computing oracle's unique approach allows it to establish itself in performance-critical enterprise markets. Competition Database Competition: Defending the Crown Jewel The database sector illustrates a similar multi-directional competitive terrain where Oracle simultaneously faces challenges from various rivals. Traditional companies, such as IBM DB2 and Microsoft SQL Server, are vying for enterprise workloads even as fresh entrants like Amazon Aurora, Google BigQuery, and many NoSQL databases are threatening other segments of Oracle's supremacy. Amazon Aurora is one of the most direct threats on the technological front to Oracle's database supremacy. Aurora promises MySQL and PostgreSQL compatibility at a very low cost and with a much better performance than "traditional" databases in the cloud. Built from the ground up for cloud computing and it manages the storage and compute resources according to demand. Google BigQuery's goal is a different one, analytics, and data warehousing of a serverless architecture that frees infrastructure management entirely. The user submits the query and gets charged for the data processed, without worrying about the underlying hardware or software configuration. This is an attractive proposition to corporations, which seek to reduce the operational complexity. Oracle has a comeback to the database rivalry that is to leverage the innovation of the Autonomous Database that stands for a fundamental rethinking of database management. Instead of solely soaring cyclical overheads or absorbing capital as an expense, it is Android that has the brain of the database engine. The Intelligent featured systems built with Oracle have historically been a strong suit only in the defense against competition but this time the new approach saves the part of the code. Their fundamental philosophy lies in a system capable of handling the workload by itself, automatically, that will increase the value from any other application. The technological brilliance of this approach lies in how it transforms Oracle's decades of database optimization expertise into machine learning algorithms. These algorithms continuously analyze database operations, identifying optimal configurations that even experienced administrators might miss. As more organizations use the technology, the collective intelligence grows stronger, creating a network effect that benefits all users while strengthening Oracle's competitive position. The Cloud Transformation Risk: Navigating a Fundamental Business Model Shift Oracle's highest risk factor is actually the ongoing transformation from a traditional software licensing model to a cloud-based subscription business. Think of this scenario as a restaurant that has been serving customers who dine in for decades and needs to suddenly become mainly a delivery service. It does not just change who the customers are, how the restaurant will operate, and the revenue model, but all of this happens in a completely new way. Financial considerations are really what the transition brings insecurities in the beginning. Traditional software licenses bring in the money with a few of very big upfront paymentsimagine you get an entire year of salary all at once in January. Cloud subscriptions, as in the previous year's credit appears many months after revenue is actually generated, spread that income across an entire year or more. Due to this, Oracle is perceived to have a "revenue recognition headwind," that is, total revenue could slump even when there is business growth. During the transforming period Oracle has to keep profitability up and at the same time invest massively in the cloud infrastructure, this performance creates a delicate threading act which may drain financial resources. The risk of customer behavior adds to the complexity of the situation. Unlike the customers who already cloud model based decisions to Oracle's cloud platform as they are uncertain. Potential customers weigh against the competition with the possibility of choosing companies that are more honest about their production capabilities and how they will be. So do they feel insecure in the period when Oracle will eat the market share from other established cloud providers and also divert its own business from traditional ones Valuation Oracle, Inc. has a P/E ratio of 39, which can be referred to as a middle range. According to its earnings multiple, Oracle is significantly lower than high-tech companies like ServiceNow (136) and Palo Alto Networks (106), but stands higher than a well-established tech firm Microsoft (35.6). This means investors have a moderate perception of Oracle's growthbetter than old-school enterprise software firms but not able to reach the standard of explosive growth pure-play cloud providers expect. The P/S ratio of 8.5 also tells the same narrative, implying that it has reasonable revenue multiple compared to ServiceNow's 18.2 or Palo Alto's 14.8. On top of that, Oracle's EV/EBITDA of 22.9 is almost equal to Microsoft's 22.7, signifying operations efficiency and cash generation in a similar way. These measures epitomize the transitional situation of Oracleinvestors appreciate the significant cloud transformation progress and the solid fundamentals of the company, yet it is not valued at the premium multiples that pure-play cloud firms command. If Oracle executes its cloud strategy effectively, experiencing an uptick in growth and with it the problem of market skepticism about the transformation timeline, the company will create possible gains. The situation is both a chance and a challenge for Oracle to further develop with the ongoing transformation. Guru Holdings Donald Morgan's 10.84% share in the company (worth $93.27M) which remains unchanged in recent activity suggests that he has full faith in Oracle's long-term transformation. However, his +268.5% gain demonstrates the fact that he bought shares much earlier, perhaps when the cloud transition increased in speed. His passive attitude is evidence of the trust he has in the management plan. Stan Moss has a 5.54% stake ($1.76B) with a recent 17.58% increase (1.89M shares) shows that he is engaged in active accumulation, which is a sign of Polen Capital considers Oracle to be undervalued right now. His average return of +7.5% suggests he entered more recently, possibly betting on the cloud transformation's success. Recommendation The whole investment scheme is based on the successful implementation of this technological transformation while at the same time keeping its database market leadership. The combination of the two will allow the firm to sit on top of the significant value created by the enterprises going for digital transformation in a faster way. This article first appeared on GuruFocus. Sign in to access your portfolio
Time of India
04-06-2025
- Business
- Time of India
Rs 43,000 crore selloff by promoters! Insider exits flash warning sign for Nifty bulls
Just as Nifty notched a hat-trick of monthly gains with a 12% surge through May, a parallel trend has emerged: India Inc's promoters are cashing out. In what could be viewed as a potential red flag for the ongoing market rally to accelerate further, promoters and other large shareholders have offloaded shares worth a staggering Rs 43,400 crore in May alone. This comes at a time when foreign institutional investors (FIIs) and domestic institutional investors (DIIs) have together pumped in nearly Rs 80,000 crore into Indian equities last month, alongside steady retail and HNI buying. The sell-off, led by high-profile block deals, is raising eyebrows about insider sentiment, especially with valuations running high. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa For Sale in Dubai Might Surprise You Villas in Dubai | Search ads Learn More Undo Topping the list is Rakesh Gangwal , co-founder of IndiGo , who sold shares worth over Rs 11,560 crore on May 27 in a fresh round of stake trimming in InterGlobe Aviation . A day later, British American Tobacco (BAT) offloaded a 2.5% stake in ITC through its subsidiary for around Rs 12,900 crore, one of the largest single-day exits in recent memory, shows data compiled from Prime Database. Earlier in the month, Singtel sold Bharti Airtel shares worth Rs 12,880 crore on May 16. Meanwhile, General Atlantic Singapore Fund exited KFin Technologies in a Rs 1,790 crore deal, and Sajjan Jindal Family Trust pared its stake in JSW Infrastructure for Rs 1,210 crore. Live Events Prime Database shows promoter selling activity also surfacing in smaller firms like Gravita India, PG Electroplast, TD Power, Paras Defence, and Ami Organics, fanning concerns among market watchers. Block deals continued this week as well with action seen in Zinka Logistics, Aptus Value Housing Finance, Yes Bank and Ola Electric on Tuesday. PE investor True North and others sold over $175 million worth of Niva Bupa Health Insurance shares on Monday. Siddharth Khemka of Motilal Oswal Financial Services pointed to liquidity dynamics behind the move. 'If FIIs want to buy, and DIIs and retail don't want to sell, then who provides supply? The promoters are stepping in. They want liquidity – they can't call up individual investors to offload 3% blocks. When institutional money is present, that's when promoter selling comes into play,' he said, adding that block deals and IPOs are likely to surge again as markets stabilize. Also read | India crowned top destination for stock compounders, says BofA; lists 9 structural themes Anshul Saigal, founder of Saigal Capital, cautioned against over-interpreting promoter sales. 'There can be multiple reasons to sell – like the Whirlpool case where the parent is in distress. I pay less attention to promoter sales and more to purchases. There's only one reason to buy – the belief that the stock will go up.' However, Sandip Sabharwal, market expert, flagged a possible contradiction. 'If companies are guiding for strong growth but promoters are dumping large volumes at high valuations, that's a dichotomy. It raises questions. I'm more concerned about small and midcap promoter sales than the larger ones like InterGlobe or BAT's sale in ITC. But even large-cap exits pull liquidity from the system and cap market upside.' While the promoter exit wave may be driven by individual circumstances – ranging from global financial pressures to portfolio rebalancing – the timing is unmistakable. As the market roars ahead, insiders are cashing in. Whether it's a canary in the coal mine or just business as usual remains to be seen, but for now, Nifty bulls may want to tread with a touch more caution. Also read | Rs 15 lakh crore in net profit! India Inc's top 500 cos break records in FY25 despite downgrades ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Independent Singapore
01-05-2025
- Business
- Independent Singapore
Asia to lead in financial accessibility by 2030, surpassing global average
Photo: Freepik/pressfoto(for illustration purposes only) ASIA: Asia is set to be a global leader in financial accessibility by 2030, according to analysts at fintech group UnaFinancial. Analysts from the fintech group expect financial inclusion to improve from 2025 to 2030 in the region, estimating financial accessibility to reach 80.2%, surpassing the global average of 76.8%. The figures are based on the group's financial accessibility index, which uses available historical data from the Global Financial Inclusion (Global Findex) Database. The index looks at how many people own accounts at financial institutions, use digital payments, have debit or credit cards, and borrow or save money. Each of these was given a weight, depending on how much it affects access to finance. In 2023, financial inclusion in Asia was 67.2%. It was expected to go up to 69.5% in 2024. Over the last 15 years, the number has grown by 82%, surpassing the global average of 67.4%. Analysts said that while Asia lagged behind other regions between 2010 and 2015 and matched global levels from 2016 to 2022, it has since taken the lead. 'This trend is driven by active digital transformation and improvements in the regulatory environment, which have allowed for the expansion of financial services even in remote areas,' analysts noted. 'The combination of technological innovation, educational initiatives, the expansion of digital infrastructure and the development of alternative lending creates a solid foundation for further improvement of financial inclusion in Asia,' they added. /TISG Read also: 5 Things to expect in Singapore's banking and financial services in 2025 Featured image by Depositphotos (for illustration purposes only)
Yahoo
21-04-2025
- Business
- Yahoo
Steinepreis Paganin top metals and mining M&A legal adviser in Q1 2025
Steinepreis Paganin has taken the top spot as the leading mergers and acquisitions (M&A) legal adviser by volume in the metals and mining sector during the first quarter (Q1) of 2025, according to the latest league table published by GlobalData, a data and analytics firm. Fasken Martineau DuMoulin claimed the second position in terms of deal volume, having advised on three separate deals. It was followed by Herbert Smith Freehills and Allion Partners, each with two deals. Mc Carthy Tetrault and Ropes & Gray jointly occupied the fifth position, each with two deals valued at $546m. As per GlobalData's Deals Database, Clayton UTZ and King & Wood Mallesons secured the top position, in terms of deal value, each advising on a deal worth $5.3bn. Herbert Smith Freehills secured the third spot, providing advisory services on transactions worth $2.3bn, followed by Allion Partners with $1.5bn in deal value, and Johnson Winter & Slattery at $831m. GlobalData lead analyst Aurojyoti Bose said: 'Clayton UTZ and King & Wood Mallesons advised on only one deal during Q1 2025, but it was worthy enough to keep them ahead of their peers in terms of value. 'Apart from leading by value, these two also jointly occupied the eighth position by volume during Q1 2025. Meanwhile, Steinepreis Paganin showcased notable improvement in its ranking by volume and went ahead from occupying the 33rd position in Q1 2024 to top the chart by this metric in Q1 2025.' GlobalData's league tables are based on the real-time tracking of thousands of company websites, advisory firm websites and other reliable sources available on the secondary domain. A dedicated team of analysts monitors all these sources to gather in-depth details for each deal, including adviser names. To ensure further robustness to the data, the company also seeks submissions of deals from leading advisers. "Steinepreis Paganin top metals and mining M&A legal adviser in Q1 2025" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
17-04-2025
- Business
- Yahoo
RBC Capital Markets, UBS lead M&A advisory in South & Central America for Q1 2025
RBC Capital Markets and UBS have emerged as the leading financial advisers in the mergers and acquisitions (M&A) sector within the South & Central America region for the first quarter of 2025, according to the latest financial advisers league table published by GlobalData, a data and analytics firm. An analysis of GlobalData's Deals Database indicates that RBC Capital Markets secured the top position in terms of deal value, advising on transactions worth a total of $1.7bn. UBS led in terms of deal volume, advising on two transactions. GlobalData lead analyst Aurojyoti Bose said: 'UBS was the top adviser by volume in Q1 2024 and managed to retain its leadership position by this metric in Q1 2025 as well. Apart from leading by volume, UBS also occupied second position by value in Q1 2025. 'Meanwhile, RBC Capital Markets advised on just one deal in Q1 2025, but its billion-dollar* value significantly boosted the firm's overall performance. As a result, the global investment bank witnessed a substantial surge in the total value of deals it advised on compared to Q1 2024. This propelled RBC Capital Markets from seventh place in Q1 2024 to the top spot by deal value in Q1 2025. In addition to leading by value, the firm also secured the third position by deal volume during the quarter.' UBS held the second position by deal value, having advised on $269m worth of deals. It was followed closely by Clairfield International and Rand Merchant Bank, both advising on $240m worth of transactions, while DNB Bank contributed with advisory on $40m worth of deals. In terms of deal volume, Pier Partners ranked second with two transactions, followed by RBC Capital Markets with one deal. Clairfield International and Rand Merchant Bank shared the fourth position, each advising on one deal. GlobalData's league tables are based on the real-time tracking of thousands of company websites, advisory firm websites and other reliable sources available on the secondary domain. A dedicated team of analysts monitors all these sources to gather in-depth details for each deal, including adviser names. To ensure further robustness to the data, the company also seeks submissions of deals from leading advisers. "RBC Capital Markets, UBS lead M&A advisory in South & Central America for Q1 2025" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
