Courtesy of Benzinga.
Oracle Corporation (NYSE: ORCL) won’t experience a risk any time soon from open-source software vendors, an analyst said Monday.
Deutsche Bank’s Karl Keirstead said vendors, like privately held MongoDB Inc., “don’t represent a near-term threat” to Oracle, which is set to post results Wednesday.
Open-Source Tech Threats?
Keirstead’s analysis runs counter to a narrative presented Friday by Bloomberg, which said the threat to Oracle has been around for years, but has recently grown more intense as open-source technology becomes more reliable.
Bloomberg cited MongoDB as well as the startup DataStax Inc. among open-source database providers who are displacing business long held by Oracle, Microsoft Corporation (NASDAQ: MSFT) and International Business Machines Corp. (NYSE: IBM).
But Keirstead, who recently attended a MongoDB users’ conference, said Mongo and its partners are “focused on empowering developers,” rather than on signing large deals with corporations.
Oracle Displacement Likelihood
For example, Keirstead said salesforce.com, inc. (NYSE: CRM)’s use of MongoDB in parts of its business “is not even close to displacing its huge Oracle database deployment.”
“The near-term Oracle displacement risk seems modest,” according to Keirstead, who said database demand, new Oracle products and a shift to subscriptions from licensing are of more near-term importance to the company.
Keirstead maintained a Hold rating and $44 target on Oracle.
Oracle Peers
MongoDB raised $80 million earlier this year, giving it a value of about $1.2 billion, according to the Wall Street Journal.
Last September, DataStax raised $106 million, giving it a value of about $830 million, according to the Journal.
As of last year, Couchbase Inc., which competes with MongoDB and
DataStax, had raised about $115 million although it declined to disclose valuation.
All three companies have said they will go public.
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Latest Ratings for ORCL
Date | Firm | Action | From | To |
---|---|---|---|---|
Jun 2015 | Piper Jaffray | Maintains | Overweight | |
Jun 2015 | Wunderlich | Initiates Coverage on | Hold | |
May 2015 | SunTrust Robinson Humphrey | Initiates Coverage on | Neutral |
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