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Oracle (ORCL) Integrates Security Capabilities Into Cloud

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Oracle (ORCL - Free Report) recently announced that it is expanding Oracle Cloud Infrastructure’s (OCI) built-in services and capabilities.

OCI, which already has a comprehensive security offering, will now be integrated with five new capabilities — OCI Network Firewall, Oracle Threat Intelligence Service, Oracle Cloud Guard Threat Detector, Oracle Cloud Guard Fusion Applications Detector and Oracle Security Zones.

The integration of the threat management capabilities in OCI will help customers protect their cloud applications and data against emerging threats without any additional investment.

Expanding threat management offerings is expected to help the company boost customer growth in the near term as more organizations are seeking solutions to curb security breaches and data exposures.

 

Availability of Comprehensive Cloud Solutions to Aid Prospects

To cater to the growing cloud security needs, Oracle is upgrading and expanding its cloud solutions portfolio. As enterprises across the world rapidly migrate to the cloud environment, the company has been witnessing a rising demand for its software-as-a-service (SaaS), infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) products.

Per a Gartner report, 45% of the global organizations will have experienced attacks on their supply chains by 2025, almost three times more than in 2021. As more organizations across industries, from retail to financial services, shift most of their critical workloads to the cloud, security breaches and data exposures are increasing. The introduction of hybrid work and digital business processes in the cloud has brought in newer risks.

The company has also been riding on the robust demand for its infrastructure cloud services. In the last reported quarter, Oracle’s infrastructure cloud services grew by more than 60%. OCI consumption, which includes Autonomous Database, was up 93% year over year. Additionally, companies like Unia, TriHealth, Williams Companies and Zoom Video Communications have selected Oracle Cloud Infrastructure services to address business needs, which is a testament to the strength of its cloud offerings.

The higher availability of Oracle cloud regions globally is expected to fortify its competitive position in the cloud computing domain. Presently, Oracle has 36 cloud regions across the globe, which it intends to scale to 44 by 2022.

The company is also benefitting from the strong growth in Cloud HCM, which is being purchased as part of an ERP cloud application suite. Due to the easier integration of Oracle Fusion Cloud Applications, many SAP (SAP - Free Report) customers have moved their base to Oracle, which is beneficial for the company.

SAP’s upgrades are not easy to integrate since a consumer has to check all the integration points, business processes and data models. As a result, many SAP customers have not upgraded, which has benefitted other cloud solutions providers like Oracle.

Moreover, Oracle has not been losing many customers. Transitioning its database to a new data center or changing ERP software for any Oracle customer is a massive and costly job. Therefore, current Oracle customers have mostly chosen to switch to Oracle’s cloud service, thus helping the company in customer retention.

Zacks Rank and Stocks to Consider

Currently, Oracle has a Zacks Rank #4 (Sell)

Oracle shares company are down 20.2% year to date against the Zacks Computer – Software industry’s fall of 24.6% and the Computer and Technology sector’s decline of 26.8%.

Some better-ranked stocks in the Zacks Computer & Technology sector are Aspen Technology (AZPN - Free Report) , which carries a Zacks Rank #1 (Strong Buy), and Ceridian HCM (CDAY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen Technology shares have returned 24.8% year to date compared with the Zacks Computer - Software industry’s fall of 24.6% and the Computer & Technology sector’s decline of 26.8% year to date.

CDAY shares have fallen 48.5% year to date compared with the Zacks Internet - Software industry’s decline f 47.2% and the Computer & Technology sector’s fall of 26.8% year to date.


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