Bob Evans’ Post

Transcript

Hello my friends, welcome back to Cloud Wars Minute, where here in the greatest growth market the world has ever known and got a question for you. Are you creating your own future or are you going to be willing to live in a world where somebody else sets all the rules for you? Oracle's Database business, with some big help from its part-time friends, but most of the time rivals, seems to have hit a breakthrough point here with the results that Oracle posted on its recent fiscal Q2 earnings. Numbers cloud database services revenue were up 28% to 550 million or, as CEO Safra Catz reported, a $2.2 billion annualized rate. And I think that for that boost got to give a lot of credit to oracles multi cloud partners, Microsoft, Google Cloud and AWS, which most of the time are their rivals for a lot of what's going on across the cloud, but it is a case here where it's a big win for customers to be able customers using Microsoft or Google Cloud or AWS to be able to access. Oracle Cloud Services through those different cloud providers they can buy, deploy, manage, upgrade the Oracle database through these other clouds. Huge development there. I think the other thing that's interesting about this is, you know, we've heard from Oracle for some time about how their cloud databases were going to be the third leg of their overall cloud growth story along with Oracle Cloud Infrastructure and Oracle Applications. And now we're seeing this kick in. This is the first time that I recall that Oracle has tied together both a revenue figure for cloud database services and a growth number. So it's an. Indication that that that business has reached a critical point where Oracle wants to talk more about it and really it is a demand I or an indication I believe is the demand from customers. They are seeing that here over all the benefits from the cloud plus the new benefits that accrue from being able to use the cloud to access all the wild new things going on in the AI world. And so I think as Oracle has overcome some of these customer. Demands for different proof points, we're seeing this open up in both CEO Safra Catz and Chairman Larry Ellison were very bullish on their forecasts for how how many customers are going to rush into this. We've got lots more detail about this in a written analysis that will appear later this morning on Cloud Wars. So just a couple of details about this. Ellison said this is going to become a multibillion dollar business for Oracles Cloud database services. And a couple of the big issues he pointed out there in Catz did as well is that a lot of customers are now turning to what Oracle Cloud calls its cloud at customer dedicated region where Oracle is able to build an entire Oracle Cloud within the customer's data center, all 100 plus. Cloud services there and this gives those customers greater flexibility to be able to do things around issues involving regulation, data privacy, sovereignty and more. So that's been a big point and Safra Catz also pointed out the notion of Oracle's Alloy program which allows customers to become cloud providers. Oracle is their technology provider, but those customers become cloud providers, whether that's for. Region reasons of being operating within a certain region, within a certain industry, certain regulatory issues or so forth. Nobody else that I'm aware of is offering this and I think this is going to be a huge step for them. So again, a couple of these big pushes behind this. Why is this happening now with the Oracle Cloud database service? First, I think very reasonably a lot of business leaders were saying, hey, it's one thing to move some applications or infrastructure, the cloud, moving a database. Is something that is extremely strategic. They wanted to be sure that Oracles entire cloud business was up running stable. Oracle has proved that the multicloud deals mentioned above with Microsoft, Google Cloud and AWS were huge. And 3rd, I think customers wanted to be sure that Oracles cloud database services could give those customers the, you know, full and complete path and roadway into AI services and Oracle certainly done that particularly with their database. 23 AI, which is a purpose built for AI. So very interesting time here. Databases are such a crucial part of what every business does, even more so now in the whole world of AI. So interesting to see that Oracle highlighted the rising customer acceptance of and demand for Oracle Cloud database services. Thanks for being with us here on Cloud Wars Minute, and I hope you have a fantastic day.