While the plan is reasonable and may potentially bear fruit, we believe it will take several quarters to materialize.
We continue to expect Oracle's business to show sluggish incremental growth, with growing competition in the database business likely to mute acceleration of the segment as competitors introduce new releases of their products.
We believe that our estimates are fair. However, with a slight pickup in end-market demand or market-share gains, it is reasonable that they may be conservative.
The company will likely grow faster than the aggregate markets in which it participates.
However, billings will have to accelerate beyond the current mid-single-digit projected rate in order for CA to be awarded a premium valuation.
We believe the acquisition will close as expected, but we are not anticipating Oracle's guidance to reflect the exceptionally strong Siebel results going forward.
After several years of talking about building a strategy to enter new businesses and accelerate license growth and earnings, BEA seems to be executing.
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