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Oracle Continues to Lead the Integrated Platform Space


Sep. 30 2015, Published 11:01 a.m. ET

Oracle is leading the Integrated Platform space

Earlier in the series, we talked about Oracle’s (ORCL) strategic strategy to push engineered systems with an aim to revive growth in its Hardware segment. Its engineered systems are a part of an $8 billion integrated systems market.

Oracle continues to be the number one player in this space, commanding more than half of the total market. According to an InfotechLead article citing International Data Corporation (or IDC) results, Oracle led the worldwide integrated platforms space with 54% market share in 2Q15.

With $482.9 million in sales in 2Q15, Oracle was the largest supplier in the Integrated Platforms space. IBM (IBM) trailed behind Oracle with its 8.9% market share. HP (HPQ) was in the third position with 3.4%.

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Integrated Platforms market saw a fall in 2Q15

Though Oracle continues to reign this space, its market share in 2Q15 fell to 54% from 54.9% in 2Q14. The remaining top two players, IBM and HP, suffered the same fate in 2Q15, as the chart above shows. The Integrated Platforms market fell 15.3%, recording $894.8 million in revenue in 2Q15.

Commenting on the trend in enterprise servers, Kevin M. Permenter, a senior research analyst at IDC, stated, “We have a tale of two markets; integrated platforms is contracting while integrated infrastructure systems are growing rapidly.” Permenter also said, “Organizations are leaning away from workload-specific platforms and toward general-purpose, multi-workload hardware solutions. We expect to see this trend continue through 2015.”

IDC defines “Integrated Platforms” as integrated systems sold with incremental, pre-integrated, packaged software and tailored system engineering. They are optimized to empower functions like application development software, databases, testing, and integration tools.

On the other hand, integrated infrastructure systems are built and designed for general-purpose, distributed workloads, which usually have differing performance profiles. Unlike integrated platforms, they are not optimized for a specific workload.

You can consider investing in the PowerShares QQQ Trust (QQQ) and the Technology Select Sector SPDR ETF (XLK) to gain exposure to Oracle. QQQ and XLK invest about 3.08% and 3.41% of their holdings in Oracle.


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