Oracle is strategically positioning itself to become a $100 billion company, largely driven by its “infrastructure anywhere” vision and multi-cloud strategy, Technology Business Research (TBR) said in its latest report.
During Oracle Cloud World 2024, the company’s focus on deployment flexibility stood out, showcasing how Oracle has transformed since the launch of its Gen2 Oracle Cloud Infrastructure (OCI).
Achieving revenue of $100 billion will be a major task considering the fact Oracle’s total revenue has just reached $52.961 billion in fiscal 2024 from $49.954 billion in 2023 fiscal. Oracle customer wins revealed during the latest financial result may reflect the growth pattern.
Oracle is making significant investment in Cloud infrastructure to boost its Cloud revenue in the coming years. Oracle expects the fiscal year 2025 Capex (capital expenditure) will be double from its Capex in fiscal 2024. Oracle’s Capex was $6.866 billion in fiscal 2024 as compared with $8.695 billion in fiscal 2023.
Oracle’s growth strategy
One key aspect of Oracle’s growth strategy is its multi-cloud approach, allowing customers to run Oracle databases natively in the data centers of major hyperscalers like AWS, Azure, and Google Cloud. This move has impressed financial analysts, with Oracle raising its FY26 revenue target to $66 billion and setting a bold goal of $104 billion for FY29, implying an annual growth rate of around 16 percent. Oracle’s $99 billion remaining performance obligation (RPO) balance further solidifies its growth trajectory.
“We think our multi-cloud strategy will expand the ubiquity and popularity of our differentiated technologies, especially the Oracle Database,” Safra Catz — Chief Executive Officer of Oracle, said.
By offering a range of cloud services, including multitenant OCI, Dedicated Regions, Cloud@Customer, and Oracle Alloy, Oracle is establishing itself as one of the most adaptable IaaS vendors on the market, says Catie Merrill, Senior Analyst at Technology Business Research.
Oracle’s partnerships with competitors like AWS and Microsoft demonstrate the company’s willingness to embrace collaboration in the face of mounting competition, particularly in the generative AI (GenAI) space, Catie Merrill said.
Oracle is also positioning itself as a low-cost Cloud service provider as compared with AWS, Microsoft Azure and Google Cloud. Oracle Cloud is less expensive than AWS for cloud storage, except for object storage. Oracle Cloud offers Universal Credits, allowing customers to use any Oracle Cloud Infrastructure or Platform Service in any region at a discount.
Oracle’s database solutions
By embedding OCI within these hyperscaler platforms, Oracle ensures customers can leverage Oracle’s database solutions while using the tools and infrastructure they are familiar with. This strategy positions Oracle to remain relevant in GenAI discussions, enabling customers to use data from Oracle databases for tasks like Retrieval Augmented Generation (RAG) and fine-tuning AI models.
Oracle has also made significant advancements in analytics, with tools like Oracle Analytics Cloud (OAC) and Fusion Data Intelligence (FDI), which enable customers to turn data into actionable business insights. Oracle’s recent introduction of the Intelligent Data Lake, combined with its analytics assistant powered by large language models (LLMs), showcases its ability to integrate AI and analytics seamlessly within its infrastructure. This unified solution, which includes integration with Salesforce, further strengthens Oracle’s position in both the SaaS and IaaS markets.
Oracle’s focus on GenAI, including its decision not to charge extra for AI in its SaaS applications, and its automation efforts with over 100 AI use cases in the Fusion suite, illustrate the company’s commitment to driving innovation across its product portfolio. By embedding AI capabilities and simplifying analytics workloads, Oracle is well-positioned to disrupt the cloud market and achieve its $100 billion revenue target over the coming years.
Baburajan Kizhakedath
