Oracle Corporation ORCL recently updated its existing Memorandum of Understanding (“MoU”) with U.K.-based Crown Commercial Service. The revised MoU is aimed at providing improved access to cloud technology to the country’s public sector companies and drive cost and production efficiency.
Crown Commercial Service is one of the biggest public procurement organisations in the U.K.
Under the revised agreement, Oracle’s entire portfolio of cloud native applications as well as autonomous technology and infrastructure services will be available to all essential public services.
Oracle further added that all the governments (local, central and devolved) and several other public service agencies/departments will have continued access to Oracle Cloud.
Oracle is also striving to improve Oracle Government Centre of Excellence to offer U.K. government with extra support and technical assistance in implementation of Oracle Cloud services and accelerate digital transformation of public services, noted the company.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
Currently, Oracle solutions are leveraged by entities like Birmingham City Council, Home Office, Office for National Statistics, the NHS NEP, the Ministry of Defence and West Midlands Police.
Oracle Gaining Ground in Cloud Domain
The cloud computing market is projected to witness a CAGR of 17.9% between 2021 and 2028 and reach $791.48 billion, per a Fortune Business Insights report.
The market is driven by accelerated digital transformation taking place across the globe amid the pandemic-induced remote work and online learning set ups.
Even in the pre-pandemic world, enterprises were readily adopting cloud.
Migration to cloud offers myriad of benefits including cost efficiency, simplified disaster recovery management and improved scalability. Pandemic only accelerated the shift.
Further, rapid proliferation of innovative technologies like machine learnings (ML), Artificial Intelligence (AI), Big Data and data analytics is aiding the market expansion, added the report.
According to Mordor Intelligence Report, cloud migration services market is expected to witness a CAGR 28.89% between 2021 and 2026 and reach $448.34 billion.
These projections augur well for cloud service providers like Oracle. The company has been working on enhancing its presence in this lucrative market. Oracle is already witnessing solid adoption of its data cloud solutions, Enterprise Resource Planning (ERP) and Autonomous Database offerings and that is driving its top line performance.
Cloud services and license support revenues (72% to total revenues) increased 5% year over year to $7.252 billion in the third quarter of fiscal 2021.
Oracle is also building a robust network of cloud regions and is expected to have 38 cloud regions, globally, by 2021. In May 2021, the company opened its second cloud region in Brazil called Vinhedo Cloud region, marking the 30th cloud region in the world.
Apart from Brazil, Oracle has dual cloud regions in United States, Japan, Canada, the U.K., South Korea, India and Australia. Tthe company plans to launch at least two cloud regions in each country that it currently operates, going ahead.
Nevertheless, Oracle faces tough competition from leading cloud players like Amazon’s AMZN Amazon Web Services, Microsoft’s MSFT Azure Cloud and Alphabet’s GOOGL Google Cloud.
At present, Oracle carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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