Oracle said it has won Cloud computing deals from McDonald’s, Albertsons Companies and Humana to move some of their work to Oracle’s cloud computing services.
Oracle also said it won a deal from business software firm Xactly in which Xactly will move the majority of its computing work to Oracle’s cloud service.
Oracle has been working to catch larger cloud rivals such as Amazon.com’s Amazon Web Services (AWS) or Microsoft’s Azure or Google Cloud.
The Redwood Shores, California company has expanded its cloud computing business this year with wins from customers such as Zoom Video Communications and data centers in more countries.
ORACLE in Q1
# Cloud services and license support revenues — $6.9 billion (+2%)
# Applications cloud services and license support – $2.8 billion (+4%)
# Infrastructure cloud services — $4.13 billion (+1%)
# Fusion ERP +33%
# NetSuite ERP +23%
# Oracle has 7,300 Fusion ERP customers
# Oracle has 23,000 NetSuite ERP customers in Oracle Cloud
Oracle said McDonald’s will move its North American financial systems to Oracle’s cloud. Grocer Albertsons and insurer Humana will also move some of their applications to Oracle’s services.
Oracle is also trying to recruit mature independent software firms to its cloud to compete with Amazon and Microsoft.
Founded in 2005, Xactly makes software that companies use to help track compensation for sales staff as they make deals. Xactly delivers its software as a service over the internet and has primarily used its own co-located data centers leased from providers such as Equinix to do so.
“As we grow, the data centers get full, things slow down and we have to write a giant check to build another data center,” Xactly Chief Executive Chris Cabrera told Reuters in an interview.
Xactly will move its flagship product, called Incent, to Oracle Cloud Infrastructure. The two companies did not disclose the size of the deal, but Cabrera said it would be the “majority” of Xactly’s computing work, while some smaller products that run on clouds at Amazon and Salesforce.com will remain on those clouds.
Oracle signalled a recovery in client spending as remote work spurred demand for cloud services as well as traditional licensing business, helping it beat expectations for first-quarter results and sending its shares up 5 percent on Thursday.
The COVID-19 pandemic has led to a rapid shift to remote work with companies looking to extend it till the next year, benefiting cloud companies that support this move.
It comes at a time when Oracle has been pushing into the cloud business that helps companies save cost by renting data centers rather than owning them.
Revenue from its largest the unit, that includes its cloud services, rose 2.1 percent to $6.95 billion.
Total revenue rose 1.6 percent to $9.37 billion, beating analysts’ average estimate of $9.19 billion
The company’s net income rose to $2.25 billion, or 72 cents per share, in the first quarter ended Aug. 31, from $2.14 billion, or 63 cents per share, a year earlier.