Oracle

’s

ORCL

Cloud Infrastructure (OCI) services are being leveraged by

Medallia


MDLA

to run the Medallia Experience Cloud Software as a Service (SaaS) platform. By utilizing OCI, Medallia is looking to enhance performance as well as reduce data center costs and comply effectively with data residency requirements, as it expands operations globally.

Medallia processes an estimated billion comments from clients’ employees across wide variety of channels (video, digital, voice, Internet of Things (IoT), social media and corporate messaging tools) to generate valuable predictive insights that aid in positively impacting decision-making, noted Oracle.

Medallia is also looking to increase its go-to-market reach by making its solutions available on Oracle Cloud Marketplace.

Previously, Medallia partnered with Oracle to combine its platform with Oracle Advertising and Customer Experience (CX) solution to provide feedback to brands in real time and help them improve customer interactions/relations. Medallia is also a member of Oracle’s Partner Network.

Booming Cloud Market Spells Robust Revenue Opportunity

Oracle is aggressively ramping up its efforts to gain a larger share of the booming cloud market that is dominated by the likes of

Amazon

’s

AMZN

Amazon Web Services and

Microsoft

’s

MSFT

Azure cloud.

The cloud market is driven by accelerated digital transformation taking place across the globe amid the pandemic-induced remote work and online learning set ups. Migration to cloud offers advantages like cost savings, simplified disaster recovery management and improved scalability.

Further, adoption of emerging technologies like machine learnings (ML), Artificial Intelligence (AI), Big Data and data analytics is driving market expansion.

The cloud computing market is projected to witness a CAGR of 17.9% between 2021 and 2028 and reach $791.48 billion,

per a Fortune Business Insights report.

Oracle is already witnessing healthy uptake of its OCI services, Enterprise Resource Planning (ERP) and Autonomous Database offerings. Solid uptake of Exadata cloud solutions along with healthy demand for the Oracle Dedicated Region Cloud@Customer is driving the company’s top line.

Additionally, the company is witnessing strong growth in Fusion Human Capital Management (HCM) solutions, which is being purchased as part of an ERP cloud application suite.

Recently

, Oracle rolled our Oracle Cloud Lift Services for its worldwide Oracle Cloud client base at no extra cost. Oracle Cloud Lift Services constitutes technical tools and cloud engineering solutions for performance analysis, application architecture and go-live support to assist customers to smoothly move their workloads to OCI.

In fourth-quarter fiscal 2021,

Cloud services and license support revenues (representing 66% of total revenues) increased 8% year over year (up 4% at cc) to $7.389 billion. Oracle plans to invest nearly $4 billion toward cloud capex spend in fiscal 2022.

Nonetheless, increasing competition from big and small players in the cloud domain and higher investments toward cloud platform development will put pressure on the company’s profitability in the near term.

In the past year, shares of Oracle have returned 42.2% compared with

industry

’s growth of 31.4%.

At present, Oracle carries a Zacks Rank #3 (Hold). You can see


the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks’ Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report

To read this article on Zacks.com click here.