Rob Black submits: Expect an in-line Oracle (ORCL) quarter in a historically difficult period. Expect to see growth from all product segments across all geographies, with better contribution from Europe than reported in recent periods. Analysts believe Fusion Middleware focus and growth will continue for the foreseeable future, highlighted by strength in Identity Management opportunities. Analysts are increasing our price target for ORCL to $19 from $17 based on our revised DCF, which includes a reduced discount rate (due to reduced risk free rate) and increased confidence in a more promising cash flow growth scenario.
Growth to Oracle is ultimately attributed to Identity. Now that is pretty big stuff. The entire company stock is expected to go from 17 to 19 ultimately driven by an upswing in identity sales. Just to put this into perspective, this is a company that could bankroll buying Peoplesoft at $10B and Siebel at almost $6B. In the past year or so, it has picked up some dinosaurs in the Identity world: Octetstring, Thor and Oblix.
The second quote is from Sun CEO:
That's a wonderful shout-out for identity. Given that the quote was taken in an interview Schwartz gave in relation to Sun's tight relationship with Accenture (and how they really need Accenture as a consulting arm to compete with IBMs Global Services division) - nonetheless - I'll take it! If that were the case, it would speak to the strength of the services market for Identity - which in turn speaks to the software market as well. Either way, it's a good sign for things to come.
"As a CEO, nothing is more important to me than security and identity management," Schwartz said. "It's the heart of SOX, HIPAA and other regulations across the world. Who has access to what information often closely relates to who pays for that information and who's liable for that information."