Oracle ORCL launched its first cloud region in Southeast Europe called Oracle Cloud Jovanovac Region in Kragujevac, Serbia. This move aims to meet the increasing demand for cloud computing services from private and public sector organizations in Serbia and the surrounding region.
The new cloud region will enable Serbian businesses to leverage the performance and security features of Oracle Cloud Infrastructure (OCI) and support the growth of industries, such as healthcare, retail and financial services.
Oracle's cloud region in Serbia is part of its distributed cloud strategy, which allows the company to deliver cloud services to specific locations based on customer requirements. Oracle offers more than 100 cloud services across 42 commercial and government cloud regions in 23 countries, further expanding its global customer base.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
Oracle Cloud Infrastructure Struggles in the Cloud Computing Market
Oracle, which currently has a Zacks Rank #3 (Hold), has been growing steadily in the cloud computing market. However, Oracle lags in market share.
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Per an AAG report, revenues from 2021 to 2022 for cloud infrastructure services reached $191 billion. Amazon.com’s AMZN Amazon Web Services (“AWS”) has the largest market share with 32%, followed by Microsoft MSFT Azure with 23%, Alphabet’s GOOGL Google Cloud with 10% and OCI with only 3.8%.
According to the same report, Microsoft Azure is preferred over AWS by organizations with lower cloud use. Among light users, 66% chose Azure, while 65% opted for AWS. For moderate users, Azure was favored by 70% and AWS by 68%. However, among heavy cloud users, 81% chose AWS, while 80% favored Azure.
To ensure the best value for money, businesses are diversifying its cloud spending across multiple providers. Notably, 89% of businesses report using multi-cloud solutions. This approach prevents businesses from being dependent on a single system and helps mitigate the potential impact of provider-related issues, such as service outages.
With multi-cloud solutions gaining momentum, the need to directly compete with giants also decreases. Small companies now can survive in the market by collaborating with giants for better reach.
OCI is specifically designed for businesses seeking cost savings, improved operational efficiency, seamless migration of its applications to the cloud and the ability to deploy services closer to end users. In addition, it provides an extensive selection of services that cater to the diverse needs of organizations. This is expected to drive Oracle’s top-line growth.
Shares of Oracle have gained 40.4% in the past year compared with the Zacks Computer and Technology sector’s growth of 5.9% in the same period.
The Zacks Consensus Estimate for ORCL’s fourth-quarter fiscal 2023 earnings is pegged at a profit of $1.58 per share, indicating year-over-year growth of 2.60%. The Zacks Consensus Estimate for revenues is pegged at $49.86 billion, indicating year-over-year growth of 17.47%.
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