With solid growth prospects, a diversity of offerings, a strong international footprint, and a competitive moat, Hewlett-Packard (HPQ +0.8%) is trading at a 'bargain price,' says Tyler McKendry. Much of this discounting is the result of Mark Hurd's departure - but the dip is unjustified and mostly caused by 'Mr. Market's mood swings.'
Hewlett-Packard (HPQ -0.7%) isn't finished doing deals, says the company's head of networking, Marius Haas. "The big are going to get bigger." He hints the next targets may be in the software arena, and then H-P will move "up the stack."
In a sign it's changing goals, SAP (SAP) says farewell to 3VPs and a services head. Among those leaving is Doug Merritt, executive VP and GM of sales in the Business Objects division, along with global field services head Bernd-Michael Rumpf. SAP is +1.3%.
By 2014, 1 in 5 Americans will own a tablet PC, with 37% using them for business, says Harris Interactive. Enterprise-friendly Research in Motion (RIMM -0.4%) may soon have a leg up over rivals. To maintain its 95% tablet market share, Apple (AAPL +0.5%) will have to sell corporations on the iPad.
Business apps maker Lawson Software (LWSN) buys on-demand human resources services provider Enwisen for $70M cash. With the purchase of privately owned Enwisen, Lawson inherits 260 customers and improved employee self-service capabilities. Lawson closed at -0.3%. (PR)
With over 4M users, Google (GOOG +1%) claims adoption of its Apps Marketplace is growing. But despite some movement, the Marketplace has drawn mixed reviews from developers, and it's not clear if it's providing any money to them - which could threaten the viability of the initiative.
Next year, niche software companies will be on the acquisition menus of the big tech players. The hottest picks will be firms that can cut IT budgets as part of long-term support contracts. And with some $290B on their balance sheets, the top 10 vendors will be "looking to place bets on emerging technologies."
Oracle's (ORCL) Q2 gives a modest indication corporate IT spending is up again and bodes well for the entire industry. While hardware revenues hit $1.1B, it's an open question if Oracle can revive the flagging Sun server business in the long term. Premarket, Oracle is +4.3%.
Analysts expect Oracle (ORCL) to report Q2 revenue of $8.3B and earnings of 46 cents/share, up from $5.9B and 39 cents/share in Q2 last year. Oracle is getting a boost from an uptick in business IT spending, and from its Sun hardware business. Oracle is +1.4%.
Salesforce.com (CRM, +1.5%) announced a database cloud service. No doubt there are plenty of companies wanting to build or expand software applications without managing the requisite databases, but Salesforce.com has a ways to go before the big Oracle (ORCL) or IBM (IBM) shops defect.
SAP (SAP +1.7%) mulls forming a tighter relationship with Hewlett-Packard (HPQ -0.5%), possibly because of Oracle's (ORCL +2.6%) legal tactics with both firms. As big as Oracle has become, the combined duo would have even more market heft and products. But SAP denies rumors it's an HP takeover target.
Although due to pocket a $1.3B award from SAP (SAP), Oracle (ORCL) will maintain a legal squeeze on 3rd party apps support provider Rimini Street. Though puny, Las Vegas-based Rimini gives its 350 customers a threatening 50% discount on Oracle maintenance. But Rimini's CEO states: "We will not be intimidated out of legal competition."
Oracle's (ORCL) $1.3B legal victory over SAP (SAP) is sending 'tremors' through the third-party software maintenance market, currently worth $100M. Using lawsuits, Oracle and other big software makers can scare off any would-be providers that threaten their support subscription cash cow. Premarket: Oracle is -1.4% to $27.35.
Ignore the high-handed legal tactics: Oracle (ORCL) remains a reliable bet, even without the $1.3B SAP (SAP) windfall. It increased earnings in 13 out 14 past quarters, has a broad portfolio of hardware and software technologies, and boasts a huge stable of customers. Oracle closed +1.6% at $27.65.