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Oracle (ORCL - Free Report) recently confirmed the statement by Secretary of the Treasury, Steven T. Mnuchin. Oracle is part of the proposal submitted by ByteDance, TikTok app’s parent company, to the Treasury Department, per which it will serve as the trusted technology provider.
Although the dynamics for the U.S. operations of TikTok are still in discussions, Zhang Yiming, founder and global CEO of ByteDance, was reportedly compelled to look for a corporate restructuring deal, over a direct divestment, as proposed by tech giant, Microsoft (MSFT - Free Report) and retail bigwig Walmart (WMT - Free Report) .
China-owned music-video app is looking for survival amid backlash from the United States, India, Japan, the European Union, and Australia.
It must be noted that on Sep 10, President Donald Trump said to reporters, that the deadline set for ByteDance to sell TikTok’s U.S. assets and finalize the deal by Sep 20, or face a ban, would not be stretched further, as revealed in Reuters article.
President Trump has proposed the sale of U.S. operations of TikTok on account of national security. The app’s huge private database on its U.S. consumers is considered a potential threat.
Therefore, it remains to be seen, whether the technology partnership deal between ByteDance and Oracle, gets approved.
Nevertheless, Oracle’s partnership deal win reflects the trust it has earned, on both sides, from perspective of ByteDance and the Treasury Department, much to the chagrin of Microsoft and Walmart.
Moreover, the latest partnership positions Oracle well gain a competitive edge over its cloud computing rivals, including Amazon’s (AMZN - Free Report) Amazon Web Services (AWS), Microsoft Azure, Google cloud platform, IBM Cloud, among others.
Year-to-Date Price Performance
Will TikTok’s Database Boost Oracle’s Cloud Push?
TikTok’s unparalleled strength in user base and the resultant huge database has allured Oracle to pursue the deal. The popular app, which allows people to record and edit short videos witnessed rapid momentum during the pandemic, driven by shelter-in-place guidelines and stay-at-home wave.
The app boasts an estimated 100 million users in the United States alone. Moreover, per data analytics firm Sensor Tower report, TikTok stood out as the most downloaded non-gaming app globally for August 2020 with more than 63.3 million installations, up 1.6% year over year.
These initiatives are also expected to provide the company an edge in the Database-as-a-Service market and reinforce its competitive position against AWS.
Moreover, the next-generation autonomous database launched by Oracle, supported by ML, is gaining traction. In first-quarter fiscal 2021, Oracle added new Autonomous Database cloud customers. New product introductions are likely to bolster growth in this category. Markedly, autonomous database in Gen2 public cloud infrastructure is witnessing rapid adoption.
Oracle’s latest Exadata Cloud@Customer service offering is also gaining traction among on-premise customers.
Noteworthy deal wins of Oracle Cloud Infrastructure (OCI) services and autonomous database include Xactly, United Breweries of India, Safaricom PLC, Schneider Electric, McDonald’s, Rinna, Polycab India, Arterra Wines Canada, and Lahore University of Management Sciences.
Management remains optimistic that Zoom Video Communications (ZM - Free Report) and 8x8 (EGHT - Free Report) are utilizing OCI services to enhance video meeting solutions in a secure manner amid explosive growth in user base.
Markedly, autonomous database consumption revenues improved 64% and annualized consumption revenues for Oracle Cloud Infrastructure (OCI) services soared 130% during fiscal first quarter.
How are AWS & Azure Placed?
Amazon, currently carrying a Zacks Rank #3, is the leading provider of cloud infrastructure as a service to enterprise customers. The expanding customer base of AWS driven by its strengthening cloud offerings will continue to aid Amazon's dominance in the global cloud space. Even more encouraging is the fact that AWS generates much stronger margins than the traditional retail business, which should remain a positive for the company’s profitability as it continues to grow in the mix.
Microsoft is benefiting from momentum in Azure, and impressive growth in clientele triggered by coronavirus crisis led work-from-home, online learning wave and tele healthcare trends. Furthermore, it is well poised to expand the total addressable market through acquisition of GitHub. Also, Azure’s increased availability in 58 regions globally, is expected to strengthen Microsoft's competitive position in the cloud computing market. Microsoft currently carries a Zacks Rank #3.
Per a Canalys report, for the second quarter of 2020, Microsoft’s market share in the cloud services space increased to 20% from 18% in the prior-year quarter. AWS market share remained unchanged at 31% for the second quarter of 2020 on a year-over-year basis.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Oracle-TikTok Alliance Challenges AWS & Azure Cloud Dominance
Oracle (ORCL - Free Report) recently confirmed the statement by Secretary of the Treasury, Steven T. Mnuchin. Oracle is part of the proposal submitted by ByteDance, TikTok app’s parent company, to the Treasury Department, per which it will serve as the trusted technology provider.
Although the dynamics for the U.S. operations of TikTok are still in discussions, Zhang Yiming, founder and global CEO of ByteDance, was reportedly compelled to look for a corporate restructuring deal, over a direct divestment, as proposed by tech giant, Microsoft (MSFT - Free Report) and retail bigwig Walmart (WMT - Free Report) .
China-owned music-video app is looking for survival amid backlash from the United States, India, Japan, the European Union, and Australia.
It must be noted that on Sep 10, President Donald Trump said to reporters, that the deadline set for ByteDance to sell TikTok’s U.S. assets and finalize the deal by Sep 20, or face a ban, would not be stretched further, as revealed in Reuters article.
President Trump has proposed the sale of U.S. operations of TikTok on account of national security. The app’s huge private database on its U.S. consumers is considered a potential threat.
Therefore, it remains to be seen, whether the technology partnership deal between ByteDance and Oracle, gets approved.
Nevertheless, Oracle’s partnership deal win reflects the trust it has earned, on both sides, from perspective of ByteDance and the Treasury Department, much to the chagrin of Microsoft and Walmart.
Moreover, the latest partnership positions Oracle well gain a competitive edge over its cloud computing rivals, including Amazon’s (AMZN - Free Report) Amazon Web Services (AWS), Microsoft Azure, Google cloud platform, IBM Cloud, among others.
Year-to-Date Price Performance
Will TikTok’s Database Boost Oracle’s Cloud Push?
TikTok’s unparalleled strength in user base and the resultant huge database has allured Oracle to pursue the deal. The popular app, which allows people to record and edit short videos witnessed rapid momentum during the pandemic, driven by shelter-in-place guidelines and stay-at-home wave.
The app boasts an estimated 100 million users in the United States alone. Moreover, per data analytics firm Sensor Tower report, TikTok stood out as the most downloaded non-gaming app globally for August 2020 with more than 63.3 million installations, up 1.6% year over year.
Oracle, currently carrying a Zacks Rank #3 (Hold), is making every effort to enhance functionalities of cloud-based applications, which is encouraging adoption. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These initiatives are also expected to provide the company an edge in the Database-as-a-Service market and reinforce its competitive position against AWS.
Moreover, the next-generation autonomous database launched by Oracle, supported by ML, is gaining traction. In first-quarter fiscal 2021, Oracle added new Autonomous Database cloud customers. New product introductions are likely to bolster growth in this category. Markedly, autonomous database in Gen2 public cloud infrastructure is witnessing rapid adoption.
Oracle’s latest Exadata Cloud@Customer service offering is also gaining traction among on-premise customers.
Noteworthy deal wins of Oracle Cloud Infrastructure (OCI) services and autonomous database include Xactly, United Breweries of India, Safaricom PLC, Schneider Electric, McDonald’s, Rinna, Polycab India, Arterra Wines Canada, and Lahore University of Management Sciences.
Management remains optimistic that Zoom Video Communications (ZM - Free Report) and 8x8 (EGHT - Free Report) are utilizing OCI services to enhance video meeting solutions in a secure manner amid explosive growth in user base.
Markedly, autonomous database consumption revenues improved 64% and annualized consumption revenues for Oracle Cloud Infrastructure (OCI) services soared 130% during fiscal first quarter.
How are AWS & Azure Placed?
Amazon, currently carrying a Zacks Rank #3, is the leading provider of cloud infrastructure as a service to enterprise customers. The expanding customer base of AWS driven by its strengthening cloud offerings will continue to aid Amazon's dominance in the global cloud space. Even more encouraging is the fact that AWS generates much stronger margins than the traditional retail business, which should remain a positive for the company’s profitability as it continues to grow in the mix.
Microsoft is benefiting from momentum in Azure, and impressive growth in clientele triggered by coronavirus crisis led work-from-home, online learning wave and tele healthcare trends. Furthermore, it is well poised to expand the total addressable market through acquisition of GitHub. Also, Azure’s increased availability in 58 regions globally, is expected to strengthen Microsoft's competitive position in the cloud computing market. Microsoft currently carries a Zacks Rank #3.
Per a Canalys report, for the second quarter of 2020, Microsoft’s market share in the cloud services space increased to 20% from 18% in the prior-year quarter. AWS market share remained unchanged at 31% for the second quarter of 2020 on a year-over-year basis.
Notably, per Synergy Research Group’s data on second quarter of 2020, Oracle’s market share of 2% in cloud infrastructure services market, trails Amazon’s 33%, Microsoft’s 18%, Google’s 9%, Alibaba’s 6%, IBM’s 5%, and salesforce’s (CRM - Free Report) 3%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>