Oracle’s cloud revenue, inclusive of its Oracle Cloud Infrastructure (OCI) and SaaS segments, grew 55% year over year during the three-month period ending May 31, reaching $4.4 billion. The OCI segment alone grew by 77% year over year, the company said.
Oracle’s cloud infrastructure growth rate has doubled compared to last year, while competitors have experienced a significant decline. Oracle’s CEO, Safra Catz, attributes this success to their strategy of building multiple identical cloud regions. Being smaller initially gives them an advantage over competitors, enabling them to expand into areas where others cannot.
Together, the hyperscalers account for roughly two-thirds of global spending on cloud infrastructure. Oracle’s modest slice of that massive and growing pie was 2% in Q1, according to Synergy Research Group. That’s slightly less than Alibaba’s 4% share and the 3% share IBM and Salesforce each held. Oracle has been using its relatively smaller size to its advantage, according to Catz.
Oracle has previously formed partnerships with Prada Group and Wyndham Hotels & Resorts. They are also collaborating with Uber, Nvidia, and Cohere. These partnerships are helping Oracle innovate and expand their offerings in areas such as retail, hospitality, and AI.
The sources for this piece include an article in CIODIVE.
