Oracle Estimates Its Annual Cloud Revenues Will Exceed $20BN In 2023

The forecast comes as the vendor secured almost 1,000 new paying cloud customers last quarter

Oracle Estimates Its Annual Cloud Revenues Will Exceed $20BN In 2023
Data & AnalyticsNews Analysis

Published: September 14, 2022

Charlie Mitchell

Oracle’s cloud computing ventures are gaining momentum, with its total cloud revenue – which combines SaaS and IaaS – rising by 50 percent year on year.

Moreover, this percentage rises to 60 percent when considering constant currency.

Digging deeper, its cloud offerings earned $3.6 billion in revenues last quarter. Yet, executives at Oracle expect more to come, predicting an annual run rate of over $20 billion.

While such a forecast may seem extreme, the vendor acquired almost 1,000 paying cloud customers last quarter as its database services – in particular – continue to draw in significant new business.

In addition, Oracle expects to lure many AWS and Microsoft Azure customers to its Oracle Cloud Infrastructure (OCI).

Taking aim at AWS during an earnings call, Larry Ellison, Chairman and Chief Technology Officer at Oracle, said: “I personally have been talking to some of Amazon’s most famous brands that are running at AWS. And the AWS build is getting very large, and they can save a huge amount of money by moving to OCI.

I expect next quarter, will be announcing some brands, some companies moving off of Amazon to OCI that will shock you… I’ll stop there.

To further extend its helping hand out to Amazon users, Oracle recently made MySQL HeatWave available on AWS.

The service combines analytics with a single MySQL database and – according to Oracle – offers seven times better price performance than Amazon Redshift.

Before that, Oracle made its cloud database services available on Microsoft Azure. In doing so, enterprises can now build new applications on the Microsoft marketplace and connect them to an Oracle database to maximize their value.

Such partnerships make it easier than ever to harness Oracle Databases Services and will likely contribute significantly to its rising revenues.

Emphasizing the value of such a move, Safra Catz, CEO at Oracle, stated:

Oracle Database is what people choose if they have real work to do. It’s very secure. It’s very performant, and they know it has so many capabilities that you don’t have to have 16 different databases to get a complicated job done.

One new high-profile Oracle Database customer is Al Rajhi Bank, the world’s largest Islamic bank, which will move all of its applications and databases to the Oracle Cloud.

Meanwhile, Unilever is now integrating Oracle Fusion applications with its Autonomous Database to build a secure, agile data platform.

Elsewhere, the likes of AT&T, Hitachi Construction, and Avianca started their journeys migrating workloads over to OCI.

Considering the current macro-environment, where competitors such as Salesforce are bracing themselves for inflation, the scale of these big customer wins is impressive.

Finally, the vendor grew its total revenues last quarter by 23 percent in constant currency. In that time, Oracle achieved $11.4 billion, surpassing analyst estimations.



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