BNP Paribas: Software distributor survey shows positive signals, Oracle (ORCL.US) is reaching a "remarkable inflection point"

According to Golden Ten Data APP, the latest software reseller survey released by BNP Paribas shows that, with partial support from generative AI (GenAI), Oracle (ORCL.US) is at a "notable inflection point". Analyst Stefan Slowinski stated in a report to clients that software reseller survey results improved in October—after a decline in July—with the European market performing particularly well. The analyst added that Oracle's tracked spending score (which covers spending over the past three months) “unexpectedly” increased, while Adobe (ADBE.US) scored lowest, and Zoom's (ZM.US) survey results also deteriorated.

Other companies with strong and positive results include Amazon (AMZN.US) AWS, which had the highest score; Google (GOOGL.US) Cloud Platform; and Microsoft (MSFT.US). In contrast, IBM (IBM.US) had the lowest score, followed by Zoom and Adobe.

The analyst noted that generative AI remains the sector with the highest demand. Notably, this field has already overtaken cybersecurity as the most in-demand area. In comparison, spending demand in human capital management and procurement is the lowest.

The analyst wrote: “We believe this could be a potential inflection point for generative AI—the technology is now maturing and starting to drive budget allocation. Oracle is showing a notable inflection point in key product categories, while Microsoft Copilot continues to make steady progress. Demand for Microsoft 365 Copilot rose to second among Microsoft products, up from fifth in the previous quarter; Dynamics became the weakest product in terms of demand, with the European market also showing signs of weakening. Given that this is Microsoft’s typically weaker first fiscal quarter (FQ1), we believe Copilot-related data provides positive support.”

The analyst added: “Oracle’s DB@AWS and DB@Azure have surged into the top three most demanded products, with OCI and Fusion also showing improved performance. Considering the importance of OCI for growth and DB@ for profitability, we find Oracle’s survey results reassuring.”

Other key findings from the survey include: Thanks to strong performances from Data Science and Snowpark, Snowflake (SNOW.US) outperformed its competitor Databricks.