Oracle Secures Multiple Billion-Dollar Cloud Infrastructure Wins

Expect Oracle’s IaaS business to soar with these deals added to its backlog

Oracle Secures Multiple Billion-Dollar Cloud Infrastructure Wins
Data & AnalyticsLatest News

Published: December 13, 2022

Charlie Mitchell

Oracle has welcomed multiple new IaaS customers, which signed billion-dollar contracts with the vendor in Q2.

While the vendor did not reveal any brand names – or the exact number billion-dollar wins – it has added these deals to its backlog.

As such, expect its cloud infrastructure business to receive a significant boost in 2023, which already boasts 22,000 customers.

These customers include big names like FedEx, Deutsche Bank, and the Tokyo Stock Exchange.

Pinpointing why these brands choose Oracle for IaaS, Larry Ellison, Chairman and Chief Technology Officer at Oracle, highlights its reliability and handling of complex workloads.

Sharing an example during a recent earnings call, Ellison said:

Nvidia moved, and a bunch of others have moved lots of AI, artificial intelligence, and machine learning workloads to the Oracle Cloud. Because it turns out, we’re really good at that.

To support these claims, Ellison also points towards the Gartner Magic Quadrant for Cloud Infrastructure and Platform Services 2022.

In this latest edition, Gartner moved Oracle into the visionary quadrant for the first time.

The report, published in November, also commended Oracle’s construction of a multi-cloud environment, which leverages its heritage in data warehousing and database tools.

One such database tool is its Oracle Exadata Cloud platform. United Airlines adopted the solution last quarter, migrating all data relating to its flight operations.

Albertsons and Mitsui have also adopted the platform.

Winning More Business With Its Microsoft Partnership

Alongside its more traditional routes to market, Oracle’s decision to make its database services available on Microsoft Azure is also helping it secure more business.

Announced in July, the move allows brands to build new apps on Azure before plugging them into an Oracle database to drive the maximum possible value.

Belgium Railways, Honeywell, and Telecom Italia are just some of the big-name businesses seizing upon this opportunity.

In doing so, they reaffirm Oracle’s belief in a multi-cloud future.

“The future of cloud is not, you know, four-walled gardens, AWS, Microsoft, Google, and Oracle,” adds Ellison.

We think those clouds are all going to interconnect. And then, customers will pick the most appropriate service for their particular needs and mix and match between the clouds.

Such a vision helped Oracle on its way to an impressive quarter, achieving over $12.3BN in total revenues for Q2, representing a 25 percent rise YoY in constant currency.

Breaking Down Oracle’s Q2 Revenues

Unsurprisingly, as the billion-dollar deals may suggest, Oracle’s cloud infrastructure is propelling much of Oracle’s growth.

During a recent earnings call, Safra Catz, CEO at Oracle, alluded to this by stating:

That strong overall revenue growth was powered by our infrastructure and applications cloud businesses that grew 59 percent and 45 percent respectively, in constant currency.

However, its NetSuite Cloud ERP solution also recorded a 29 percent hike in revenues. Meanwhile, its Fusion Cloud ERP solution trailed by only one percentage point (28 percent).

These results are particularly impressive against the current economic backdrop, which has caused many businesses to stall major buying decisions.

Moreover, Oracle announced numerous layoffs across the US in August to cut costs by $1BN.

Yet, the move does not seem to have slowed down revenues. Indeed, its YoY revenue growth increased from 23 percent in the previous quarter to 25 percent in Q2.

Very few companies in the data & analytics space can compete with those figures, which will give Oracle leaders much encouragement as 2023 looms.



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