Oracle ( ORCL Quick Quote ORCL - Free Report) recently announced that Oracle Cloud Infrastructure (OCI) attained Department of Defense (DOD) Impact Level 5 (IL5) Provisional Authorization (PA) for additional services. The OCI services covered by DOD IL5 PA authorizations are Oracle Autonomous Database and Integration Cloud. Services within Oracle Autonomous Database and Cloud Integration, which attained the DOD authorization, include Oracle Autonomous Database on Dedicated Infrastructure, Autonomous Database on Shared Infrastructure, Oracle Cloud Infrastructure Data Catalog, Oracle Integration Cloud, Oracle Cloud Infrastructure Logging, Oracle Cloud Infrastructure Service Connector Hub and VCN Flow Logs. With the DOD authorizations in place, Oracle is expected to deliver a highly secure, compliant and cost-effective cloud built for the U.S. government at a much lower price. Robust Demand For Cloud Solutions Boosts Customer Base
The coronavirus-led pandemic has accelerated the adoption of cloud solutions and services across markets. Emerging technologies such as virtualization, edge computing and containerization are steadily becoming more mainstream, driving additional cloud spending.
Oracle’s SaaS, IaaS and PaaS products will likely witness strong momentum over the next few years as enterprises rapidly migrate to the cloud environment. Thus, the company has been concentrating on upgrading and expanding its cloud solutions portfolio. Per Gartner, the global end-user spending on cloud services was $410.9 billion in 2021 and is projected to grow 20.4% in 2022, reaching $494.7 billion. Infrastructure-as-a-service (IaaS) is anticipated to experience the highest end-user spending growth in 2022 at 30.6%, followed by desktop-as-a-service (DaaS) at 26.6% and platform-as-a-service (PaaS) at 26.1%. SaaS remains the largest public cloud services market segment, expected to reach $176.6 billion in end-user spending in 2022. In the last reported quarter, Oracle’s Cloud services and license support revenues reached $ 7.64 million, up 5% year over year (up 8% at cc), driven by the robust demand for Fusion, Autonomous Database and OCI services. The trend is likely to continue in the near term. Recently, Oracle partnered with VMware ( VMW Quick Quote VMW - Free Report) to launch Oracle Cloud VMware Solution. The Oracle VMware Solution provides a faster route to the cloud, providing predictability, security and control of on-premise VMware workloads. The solution gained popularity among leading enterprises in retail, telecommunication, finance and banking, manufacturing, government and others. The American energy company, Williams Companies ( WMB Quick Quote WMB - Free Report) , selected Oracle to shift its finance and operations to the cloud. Williams handles approximately 30% of the natural gas in the United States that is used every day by the population. The natural gas industry witnessed a boom and then stabilized, which impacted Williams’ cost structure. Williams opted for Oracle Fusion Cloud Enterprise Resource Planning (ERP), which provides the company with real-time insights and control over its costs and reduces its energy consumption with SaaS. Moreover, to consolidate and replace its Human Resources systems in the cloud as part of its global digitalization program, Nokia ( NOK Quick Quote NOK - Free Report) has selected Oracle Fusion Cloud Human Capital Management (HCM). Implementing Oracle Cloud HCM will help Nokia standardize its HR processes on a common data platform. This will enable Nokia to easily manage and scale its global HR services and provide a consistent employee experience across teams. Post the pandemic, the new reality of hybrid work is also prompting organizations to move toward cloud services adoption instead of powering their workforce with traditional client computing solutions. This bodes well with cloud solutions providers such as Oracle. In the past year, Oracle has expanded its customer base massively across all sectors, including TriHealth, Unia, Delta Sonic Car Wash Systems, Madison Gas and Electric and several others. Shares of this Zacks Rank#4 (Sell) company are down 17.6% year to date against the Zacks Computer – Software industry’s fall of 25.2% and the Computer and Technology sector’s decline of 26.7%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here