Oracle Is Doing Battle With the Cloud

Companies such as Salesforce are heating up the competition.

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    Larry Ellison has seen cloud computing taking a bite out of his company's market share.

    The Bay Area's richest resident might have reason to worry about his fortune.

    While there is little threat that Larry Ellison's estimated $28 billion value will go up in smoke, the cloud is offering a challenge to the future expansion of that pile of gold.

    Cloud-computing companies, such as Salesforce, are beginning to erode Oracle's market share, according to reports.

    More and more customers, such as Zynga, Hewlett-Packard, NBC and Bayer AG, are turning to the cloud for their needs.

    The switch is saving companies money and Oracle is left spending billions to catch up to the likes of Salesforce and Workday.

    In February Oracle spent $1.9 billion to take over Taleo and last year the Redwood Shores company spent $1.5 billion to acquire RightNow Technologies.

    Both companies are cloud-based computing companies.

    Just how much impact the cultural shift is having on Oracle may be revealed Last Tuesday when the company releases its earnings.