Jefferies released an industry note Thursday on software and initiated coverage on Oracle Corporation (NYSE: ORCL) with a Hold rating and $41 price target.

Overall, the analyst report commented that “Key advances in foundational computing technologies over the last decade set the stage for Intelligent Systems (including “Big Data”), Mobile, Internet of Things, Next Generation Security, as well as SaaS and the commoditization of infrastructure (aka Cloud).”

For Oracle, analysts led by John DiFucci believed “that broader deployment of the company’s latest release of its flagship database, 12c and its multi-tenancy option will lead to a positive inflection point in Exadata growth (including both high margin software and relatively high margin hardware).”

DiFucci noted that “secular pressure in its traditional hardware and applications businesses and significant changes to the go-to-market strategy have disrupted growth more recently.”

Oracle closed at $40.92 Thursday, up 0.02 percent.

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