Oracle
’s
ORCL
Cloud Infrastructure platform was recently leveraged by Samsung Securities to migrate Derivative Analytics Business to cloud environment.
Samsung Securities can now utilize high-performance computing capabilities to run advanced and cost-effective simulations and analytics in real-time by moving the Derivative Analytics Business to cloud. This will help the company to sync with dynamic financial markets and boost customer gains.
Migration to cloud will also offer benefits like increased security and flexibility as well as strong disaster recovery management. Oracle further noted that Samsung Securities created a disaster recovery (DR) environment for the cloud, safeguarding the maximum availability of its derivatives analytics platform. The company is also expanding cloud usage to support various other services including real-time ‘quant’ trading to facilitate an effective response to changing market conditions, added Oracle.
Samsung Securities is a global financial investment company with offices located in Beijing, Hong Kong, London, New York, and Tokyo, in addition to 45 domestic offices.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart
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Oracle Corporation Quote
Oracle’s Efforts to Boost Cloud Business
The cloud computing market is being driven by rapid workload migration to cloud, primarily due to the remote/hybrid work implementation. Higher demand for cloud-native applications like streaming services and spurt in e-commerce are other catalysts. The adoption of pioneering technologies like machine learning, Artificial Intelligence (AI), Big Data is also contributing to the market growth.
According to Fortune Business Insights report
, the global cloud computing market is expected to witness a CAGR of 17.9% between 2021 and 2028 and reach $791.48 billion. The global finance cloud computing market is projected to witness a CAGR of 12.4% between 2021 and 2030 and reach $90.11 billion,
per a report from Allied Market Research.
Oracle is striving hard to capture a large share of the global cloud market to boost the top-line performance. The company’s software-as-a-service (SaaS), infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) products are likely to grow strongly over the next few years as enterprises rapidly transition to the cloud environment.
For first-quarter fiscal 2022, Oracle’s Cloud services and license support revenues (nearly 76% of total revenues) increased 6% year over year (up 5% at constant currency) to $7.371 billion.
The company is rapidly expanding its global cloud region footprint to support its cloud services. Recently, the company unveiled a cloud region each in France (Marseilles), Singapore and the United Arab Emirates, taking the total number of cloud regions to 34, at present. Oracle is planning to have 44 cloud regions by the end of 2022.
Increasing spend on product enhancements, especially toward the cloud platform is likely to limit margin expansion in the near term for Oracle, which carries a Zacks Rank #3 (Hold).
You can see
the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Also, the company faces intense competition from the likes of
Amazon
AMZN
Amazon Web Services (“AWS”),
Microsoft
’s
MSFT
Azure and
Alphabet
’s
GOOGL
Google cloud, which dominate the global cloud market.
Per a Statista report,
Amazon accounted for 32% of the global cloud infrastructure services market followed by Microsoft (21%) and Alphabet’s Google Cloud (8%) in the third quarter of 2021.
In the last reported quarter
, Amazon’s AWS revenues (15% of total company sales) rose 39% year over year to $16.1 billion.
Microsoft reported a 50% year over year (up 48% at constant currency) increase in Azure and other cloud services’ revenues in first-quarter fiscal 2022.
In third-quarter 2021, Alphabet reported a 44.9% year-over-year jump in Google Cloud revenues to $4.9 billion, which contributed 7.7% to the company’s quarterly revenues.
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