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Oracle (ORCL) Secures Cloud Contract With Hitachi Construction
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Oracle (ORCL - Free Report) has secured a significant cloud migration deal with Hitachi Construction Machinery Co., Ltd., marking a major win for its Oracle Cloud Infrastructure (“OCI”) platform. The Japanese heavy equipment manufacturer has chosen OCI to migrate its large-scale and mission-critical business systems across various departments, including accounting, development, production and sales. This move is part of Hitachi Construction Machinery's broader digital transformation strategy, which is aimed at unifying data from critical systems and preparing for future AI implementation.
The migration leverages Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI, enabling a swift and reliable transition with minimal changes to existing applications and databases. This approach has allowed Hitachi Construction Machinery to achieve significant performance improvements, with online transaction processing performance increasing 50% and batch processing performance enhancing 60% for several core business systems. Additionally, the company has reduced its infrastructure operating costs by 20%, demonstrating the economic benefits of the cloud migration.
Hitachi Construction Machinery highlighted OCI's unique ability to securely migrate mission-critical databases running on Oracle Exadata and VMware virtualization environments without requiring extensive reconfiguration. This capability was a key factor in the company's decision to choose Oracle over competitors, as it avoided the need for costly application rebuilds.
The scale of the migration is substantial, involving approximately 500 virtual servers and 100 databases. This transition is expected to yield benefits, such as improved architecture, enhanced automation, better performance and optimized costs. Hitachi Construction Machinery is also implementing a new disaster recovery environment using Oracle Cloud's Tokyo and Osaka regions to strengthen business continuity.
Looking ahead, Hitachi Construction Machinery plans to further modernize its applications to cloud-native OCI and migrate remaining databases from on-premises environments. This Zacks Rank #3 (Hold) company aims to develop a comprehensive DX platform, leveraging multicloud and AI capabilities in the future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle Hustles to Solidify Position in the Global Cloud Services Market
This deal represents a significant victory for Oracle in the competitive cloud services market, particularly in the industrial sector, where mission-critical systems require robust, reliable and high-performance cloud solutions.
The Zacks Consensus Estimate for ORCL’s fiscal 2025 revenues is pegged at $57.45 billion, indicating year-over-year growth of 8.5%. The consensus mark for fiscal 2025 earnings is pegged at $6.14 per share, down by a penny in the past 30 days. The figure indicates year-over-year growth of 10.4%.
Cloud services are experiencing a resurgence, driven by increased customer commitments to hyperscalers and growing demand for AI applications. Enterprise IT optimization's impact on the market is diminishing as cloud migration efforts accelerate. Hyperscalers are investing heavily in generative AI, anticipating that it will fuel cloud consumption growth. Canalys predicts global cloud infrastructure services spending will rise 20% in 2024, up from 18% in 2023, reflecting this renewed momentum in the cloud sector.
Such growth prospects have intensified competition for Oracle from other cloud giants like Amazon (AMZN - Free Report) -owned Amazon Web Services (“AWS”), Microsoft (MSFT - Free Report) Azure and Alphabet (GOOGL - Free Report) -owned Google Cloud.
In the global cloud infrastructure market, AWS has solidified its position as the largest provider, reaching a 31% market share in the first quarter of 2024, followed by Azure (25%) and Google Cloud (11%). The "Big Three" now control 67% of the expanding cloud sector.
Oracle is positioning itself as the only hyperscaler capable of delivering AI and a full suite of 100+ cloud services across dedicated, public and hybrid cloud environments globally.
For the first quarter of fiscal 2025, total cloud revenues are expected to grow in the range of 21-23% in constant currency and 20-22% in dollar terms. The company expects fiscal 2025 cloud infrastructure services to grow 50% faster than fiscal 2024.
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Oracle (ORCL) Secures Cloud Contract With Hitachi Construction
Oracle (ORCL - Free Report) has secured a significant cloud migration deal with Hitachi Construction Machinery Co., Ltd., marking a major win for its Oracle Cloud Infrastructure (“OCI”) platform. The Japanese heavy equipment manufacturer has chosen OCI to migrate its large-scale and mission-critical business systems across various departments, including accounting, development, production and sales. This move is part of Hitachi Construction Machinery's broader digital transformation strategy, which is aimed at unifying data from critical systems and preparing for future AI implementation.
The migration leverages Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI, enabling a swift and reliable transition with minimal changes to existing applications and databases. This approach has allowed Hitachi Construction Machinery to achieve significant performance improvements, with online transaction processing performance increasing 50% and batch processing performance enhancing 60% for several core business systems. Additionally, the company has reduced its infrastructure operating costs by 20%, demonstrating the economic benefits of the cloud migration.
Hitachi Construction Machinery highlighted OCI's unique ability to securely migrate mission-critical databases running on Oracle Exadata and VMware virtualization environments without requiring extensive reconfiguration. This capability was a key factor in the company's decision to choose Oracle over competitors, as it avoided the need for costly application rebuilds.
The scale of the migration is substantial, involving approximately 500 virtual servers and 100 databases. This transition is expected to yield benefits, such as improved architecture, enhanced automation, better performance and optimized costs. Hitachi Construction Machinery is also implementing a new disaster recovery environment using Oracle Cloud's Tokyo and Osaka regions to strengthen business continuity.
Looking ahead, Hitachi Construction Machinery plans to further modernize its applications to cloud-native OCI and migrate remaining databases from on-premises environments. This Zacks Rank #3 (Hold) company aims to develop a comprehensive DX platform, leveraging multicloud and AI capabilities in the future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle Hustles to Solidify Position in the Global Cloud Services Market
This deal represents a significant victory for Oracle in the competitive cloud services market, particularly in the industrial sector, where mission-critical systems require robust, reliable and high-performance cloud solutions.
The Zacks Consensus Estimate for ORCL’s fiscal 2025 revenues is pegged at $57.45 billion, indicating year-over-year growth of 8.5%. The consensus mark for fiscal 2025 earnings is pegged at $6.14 per share, down by a penny in the past 30 days. The figure indicates year-over-year growth of 10.4%.
Cloud services are experiencing a resurgence, driven by increased customer commitments to hyperscalers and growing demand for AI applications. Enterprise IT optimization's impact on the market is diminishing as cloud migration efforts accelerate. Hyperscalers are investing heavily in generative AI, anticipating that it will fuel cloud consumption growth. Canalys predicts global cloud infrastructure services spending will rise 20% in 2024, up from 18% in 2023, reflecting this renewed momentum in the cloud sector.
Such growth prospects have intensified competition for Oracle from other cloud giants like Amazon (AMZN - Free Report) -owned Amazon Web Services (“AWS”), Microsoft (MSFT - Free Report) Azure and Alphabet (GOOGL - Free Report) -owned Google Cloud.
In the global cloud infrastructure market, AWS has solidified its position as the largest provider, reaching a 31% market share in the first quarter of 2024, followed by Azure (25%) and Google Cloud (11%). The "Big Three" now control 67% of the expanding cloud sector.
Oracle is positioning itself as the only hyperscaler capable of delivering AI and a full suite of 100+ cloud services across dedicated, public and hybrid cloud environments globally.
For the first quarter of fiscal 2025, total cloud revenues are expected to grow in the range of 21-23% in constant currency and 20-22% in dollar terms. The company expects fiscal 2025 cloud infrastructure services to grow 50% faster than fiscal 2024.