One-Stop Shop for Vertical Tech Stack

By Reuters  |  Print this article Print

Oracle CEO Larry Ellison says his company's acquisition strategy will focus on technology companies, including microchip makers, and not so much IT and business services firms such as Accenture.

Combining technology acquired through Sun with Oracle's database software, the company released the Exadata X2-8 database appliance and Exalogic, a new product to help companies manage so-called "cloud" computing.

Oracle also released a new suite of applications for managing accounting, human resources, supplies, sales and marketing.

Designing hardware and software to work together instead of mixing and matching products made by different companies is expected to boost performance and reduce costs for Oracle's customers.

Oracle is aiming to substantially increase its gross margins over the coming quarters and years, Epstein said. Oracle's gross margins stood above 70 percent in past quarters.

Oracle says that 70 percent of most companies' IT spending goes toward keeping their systems up and running, limiting what they can invest to improve performance.

Despite the slow economy, Oracle posted a 25 percent surge in software sales in its first fiscal quarter, sharply beating forecasts. (Reporting by Noel Randewich, editing by Leslie Gevirtz editing by Carol Bishopric)