Welcome to the Cloud Wars Minute — your daily cloud news and commentary show. Each episode provides insights and perspectives around the “reimagination machine” that is the cloud.
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In today’s Cloud Wars Minute, I take a look at Oracle’s dynamic approach to cloud expansion, revealed in its Q3 results.
Highlights
00:35 — Oracle booked 40 AI deals in Q3, totaling a billion dollars. That’s an average of $25 million each, and that’s on top of the traditional cloud infrastructure business that Oracle does. Huge growth there. The company also is racing to build the world’s largest AI data center. All of that has resulted in, for Q3, its RPO (remaining performance obligation) jumping 29% to $80 billion.
01:54— But the challenge is building out enough capacity. A couple of other things that chairman Larry Ellison mentioned. He said it is seeing more of the multi-cloud type of deals like the groundbreaking partnership that Microsoft signed with Oracle several months ago for multi-cloud.
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03:24 — Ellison said it is signing other multi-cloud deals like this, particularly in Japan. Ellison also said a lot of its large customers have been very happy with their public cloud, but they’re saying, ‘We want to have something a little more personal to us.’ So, they want their own dedicated region, which Ellison says, “Oracle is the only company that can do that.” And then he talked about the new Alloy program.
04:31 — So there are booming dynamic market dynamics across the board for Oracle on all those fronts. I think one of the things that came out of Q3 for me, their Q3 numbers, looking at the past three months, was that they were pretty good — 25% cloud growth — not spectacular.
04:51 — But when you look into the future here, these enormous bookings and the growth rates and the range of deployment options as Oracle offers, I think that’s why it is such a hot company right now, being very disruptive in the hyperscaler category.
