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Oracle Gets a Buy Rating from UBS following Cassandra Summit

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UBS assigned buy rating to Oracle

On September 25, 2015, UBS, a financial service provider, restated its buy rating on Oracle (ORCL). This news came after UBS attended the Cassandra Summit, which concluded on September 24, 2015. The Cassandra Summit is considered to be the world’s largest assembly of Cassandra NoSQL database users.

Oracle’s receiving a buy rating from UBS holds a special significance, as Oracle has been on the receiving end of the growing prominence of open-source databases like Cassandra. Other open-source NoSQL database developers such as MongoDB and CouchDB also participated.

Cassandra’s database was developed by Facebook (FB) to handle its enormous volumes of data. The technology behind Cassandra was developed by Amazon (AMZN) and Google (GOOGL).

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Oracle leads in database space

Larry Ellison, Oracle’s executive chairman, stated, “Database is our largest software business and database will be our largest cloud business.”

In the past, Oracle has claimed to be a leader in the relational database market with a revenue share of 48.3%. UBS shared the same sentiment, stating that Oracle commands over 40% market share in the database market worth ~$30 billion.

In 2013, Oracle launched its 12c database. Please read Oracle’s Database 12c Will See Increased Adoption to know more.

Contrary to the popular belief that NoSQL, Cassandra, and other open-source databases pose a threat to Oracle’s dominance in the database market, UBS shared that the NoSQL database has relatively less impact on Oracle’s franchise business. In fact, it is the movement of workload toward the cloud that has cast dark shadows on Oracle’s market share.

You can consider investing in the PowerShares QQQ Trust ETF (QQQ) to gain exposure to Oracle. QQQ invests about 3.08% of its holdings in Oracle.

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