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In today’s Cloud Wars Minute, I discuss Oracle’s anticipated 29% Q4 cloud revenue growth, highlighting its strategic data center expansions and strong demand for AI training services.
Highlights
00:24 — Later today, Oracle will release its fiscal Q4 results and full-year results for its fiscal quarter and year ending May 31. I wanted to give a preview: Overall, we’re going to see its cloud revenue rise to 29%. The key driver is going to be enhanced or expanded data center capacity.
01:20 — By contrast, Oracle’s cloud growth rate has been 25% the last two quarters. In both, CEO Safra Catz and Chairman Larry Ellison have said emphatically that Oracle has more demand than it’s able to fill. So, it’s been looking to boost its data center capacity for more cloud infrastructure capability.
02:22 — Safra Catz has also talked in detail about how the company offers more deployment options. Jumping ahead here a little to the possibility of them doing some work with Elon Musk’s company, there have been some rumors about Oracle doing AI training for Musk’s xAI company. This could be a big deal.
Ask Cloud Wars AI Agent about this analysis
03:43 — These big AI training deals have really been a spike to Oracle’s cloud infrastructure growth. But as I said, they’ve also got some of the traditional stuff. “In addition to the little data centers, we’re going to build,” Ellison said, “these are the largest AI data centers or largest data centers that we know of being built anywhere.”
04:07 — It’s a fascinating time for Oracle. That’s why I’m expecting that, later today, when Oracle releases its Q4 numbers, its overall cloud growth rate is going to be 29%, with both its cloud infrastructure and cloud database businesses being in hypergrowth. Its cloud applications business, I believe, will come in somewhere around 17%.
