In today’s Cloud Wars Minute, I discuss Oracle’s fiscal Q3, spotlighting the rapid growth of Oracle Cloud Infrastructure (OCI).
Highlights
00:16 — Later today, Oracle will release its fiscal Q3 numbers. Oracle Cloud Infrastructure has been on a tear. Last quarter, OCI revenue was up 52% to $1.6 billion. I believe that its cloud infrastructure business is going to grow 51% to about $1.8 billion. My projection for Oracle’s cloud apps business is that it will be up about 20% to $3.4 billion.
01:10 — By the end of this year, cloud infrastructure will likely overtake cloud apps as the larger part of Oracle’s overall cloud business. What’s the basis for this bullishness and these extremely high growth rates?
02:13 — In the earnings call three months ago, Chairman Larry Ellison and CEO Safra Catz were extremely bullish; they said they could have had much higher OCI revenue in that last quarter had they been able to meet customer demand.
03:30 — The other big thing that happened late last year in these earnings results: Microsoft ordered 20 Oracle cloud data centers to be built within Azure data centers. I think that will make Microsoft Oracle’s largest customer; it’s just a stupendous order.
04:37 — It’s because of those sorts of deals — those unprecedented, groundbreaking deals, as well as tried-and-true types of cloud infrastructure deals — that there’s so much bullishness and high expectations about what Oracle is going to disclose later today.
