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Oracle (ORCL) Cloud Infrastructure Selected by DOCOMO for ALADIN

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Oracle (ORCL - Free Report) recently announced that NTT DOCOMO (DCMYY - Free Report) , the Japan-based Mobile operator, has adopted Oracle Cloud Infrastructure (OCI) to build a new development environment for All Around DOCOMO Information Systems (ALADIN). It is one of the largest customer information management systems in the world.

ALADIN’s developers will be able to construct modern applications in a more cost-effective and efficient manner, using OCI.

The integration of OCI will also provide DOCOMO access to highly available and more secure compute resources, as the company intends to expand to broader telecommunications, internet and smart life services.

Notably, DOCOMO also moved its on-premise Oracle Database for database training to Oracle Database Cloud Service on OCI.

Growing Demand for Cloud Offerings to Drive Top Line

Global cloud adoption continues to expand as business models transform and the demand for secure remote technology accelerates.

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 migrate to the cloud environment.

Oracle’s performance is also gaining from momentum across the cloud business, driven by strong uptake of OCI services and Autonomous Database offerings. The healthy adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM) bodes well in the long term.

The company is focused on upgrading and expanding its cloud solutions portfolio to keep up with the rising demand.

Last month, OCI announced the launch of new capabilities and services that are directed toward providing customers with more flexibility. OCI will expand with 11 new compute, networking and storage capabilities and services, which will enable customers to run their workloads more efficiently and securely at lower costs.


Earlier this year, Oracle Cloud was selected by Xerox (XRX - Free Report) to support the launch of new businesses.

The move will enable Xerox to capitalize on Oracle’s expertise in cloud solutions to bring 3D Printing infrastructure to manufacturing, structural health monitoring and augmented reality to improve customer support.

With the help of Oracle Cloud and Oracle NetSuite, Xerox will be able to create a unified cloud platform and operate with agility and speed. The move will help Xerox launch new business models and process them on a single platform without additional integrations.

In the fiscal third quarter, Oracle’s Cloud services and license support revenues (73% of total revenues) increased 5% year over year (up 8% at cc) to $7.637 billion. The upside can be attributed to continued strength in the Fusion, Autonomous Database and Oracle Cloud Infrastructure (OCI) services.

In the fiscal third quarter, management noted that the company’s total cloud revenues on an annualized basis stood at $11.2 billion and were up 26%. Management also added that the strategic back-office cloud applications business increased 29%. The strategic back-office cloud applications business now has $5.1 billion in annualized revenues.

The growing clientele is helping the company to maintain its leading position in the cloud domain.

In the fiscal third quarter, consumption revenues for OCI services, including Autonomous Database, soared 93% at cc. Cloud customer consumption revenues increased 43% year over year.

The next-generation autonomous database launched by Oracle, supported by machine learning (ML), is also witnessing steady traction. New product introductions, including new OCI managed services, are likely to boost growth in the category. The autonomous database in Gen2 public cloud infrastructure is witnessing a healthy uptake.

Oracle is expanding its worldwide cloud region footprint to support its cloud services. 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. Oracle is planning to have 44 cloud regions by the end of 2022.


Zacks Rank and A Stock to Consider

Oracle currently carries a Zacks Rank #3 (Hold).

Oracle shares are down 5.6% in the year-to-date period compared with the Zacks Computer - Software industry’s plunge of 11.1% and the Computer and Technology sector’s fall of 10.8%.

A better-ranked stock in the Zacks Computer and Technology sector is Advanced Micro Devices (AMD - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMD shares are down 24.8% in the year-to-date period compared with the Zacks Electronics - Semiconductors industry’s plunge of 14.9% and the Computer and Technology sector’s fall of 10.8%.

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