Oracle seeks to drive growth using its current arsenal of products and services

The second-biggest maker of software in the world is shifting its approach to revenue amid increasing competition.

Redwood City, California-based Oracle Corp. is bucking a popular trend among technology companies on its quest for ever-increasing profits, according to a report from Bloomberg.

Unlike IBM, which announced earlier in the week it intended to augment revenue with mid-level acquisitions, Oracle co-president Safra Catz told analysts at a meeting in San Francisco this week the company is promoting growth from within. The firm's strategy will rely on an uptick in hardware sales and a new cloud computing system to increase its market share, according to Catz.

Oracle, which purchased Sun Microsystems in 2010 for $7.4 billion, will utilize its current business divisions to lure additional customers and increase its profit margins. The company is working to gain a bigger piece of the cloud, and is pushing its newly formed Oracle Public Cloud to entice potential customers.

"People realize M&A is a big part of the Oracle growth story - on the other hand, no one wants to see a big, dilutive acquisition," ISI Group analyst Bill Whyman affirmed.

Company officials are confident the firm's new business strategy will result in a precipitous uptick in earnings, according to a report from MarketWatch. The tech giant is aggressively hiring to meet burgeoning demand, executives said, and it projects business cost reductions and efficiency improvements, among other measures, can help to potentially drive earning per share 20 percent higher.

Business analysts lauded the firm's new strategy.

"We believe that Oracle’s broad technology footprint is its greatest competitive advantage," William Blair analyst Laura Lederman stated in a note. "The company's multitude of acquisitions has made it more strategic to IT buyers - many customers are taking an Oracle-first approach."

Oracle co-president Mark Hurd added the firm is avoiding acquisitions because they could create problems for management, prohibiting them from focusing their attention on the company's expansive network of products and services.

"We think we're going to have a really strong year," Hurd told analysts.

Oracle's revenue is expected to climb by 8 percent to $38.6 billion in its current fiscal year.