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Oracle (ORCL) Cloud VMware Fuels Global Shift, Boosts Options
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Oracle (ORCL - Free Report) -owned Cloud VMware Solution is gaining traction among global organizations seeking to modernize their IT infrastructure and migrate critical applications to the cloud. Notable companies across diverse industries, including retail giant Ahold Delhaize, manufacturing leader Hitachi Construction Machinery, Ukrainian railway operator Lemtrans and automotive distributor Mazda Motors Logistics Europe N.V., have successfully leveraged this solution to transition from on-premises data centers to Oracle Cloud Infrastructure (“OCI”).
The appeal of Oracle Cloud VMware Solution lies in its ability to streamline the migration process while allowing organizations to maintain control over their VMware environments. This approach enables companies to preserve their existing IT skills, tools and processes, significantly reducing the learning curve and risks associated with cloud migration.
Ahold Delhaize, one of the world's largest food retailers, migrated more than 400 VMware virtual machines supporting its e-commerce, supply chain and retail processes to OCI, effectively eliminating its remaining data center footprint. Similarly, Hitachi Construction Machinery transitioned approximately 500 virtual servers and 100 databases to Oracle's cloud services, resulting in a 20% reduction in infrastructure operating costs and substantial improvements in processing performance.
Lemtrans swiftly relocated its critical processes and databases to the cloud, ensuring business continuity and improved resilience. Mazda Motors Logistics Europe N.V. also achieved its goal of phasing out data centers by consolidating its applications and databases into Oracle's cloud services.
Oracle Enhances Cloud VMware Solution With New Compute Options
To further enhance the capabilities of its Cloud VMware Solution, Oracle has introduced new compute options. The company recently released a new OCI Compute shape featuring an NVIDIA A10 Tensor Core GPU and an Intel Xeon Platinum 8358 Processor. This addition is designed to support a wide range of workloads, including virtual desktop infrastructure, AI inferencing and graphics-intensive applications.
Looking ahead, this Zacks Rank #3 (Hold) company plans to expand its offerings with another compute shape based on the AMD EPYC 9J14 processor. This upcoming option is expected to provide up to 50% more cores per cluster, bringing the latest generation of AMD processors to customers running VMware environments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The new compute options underscore Oracle's commitment to providing customers with enhanced performance and flexibility across diverse workloads. By continually expanding its service capabilities, Oracle aims to solidify its position as a leading provider of cloud infrastructure solutions for organizations seeking to modernize their IT operations while maintaining control over their VMware environments.
Year-to-Date Performance
Image Source: Zacks Investment Research
Oracle Solidifies Cloud Offerings to Fend Off Competition
As more companies recognize the benefits of Oracle Cloud VMware Solution, including simplified migration, improved performance and cost savings, the service is likely to play an increasingly important role in global cloud adoption strategies.
Oracle's focus on preserving customers' existing IT investments while offering advanced cloud capabilities positions it well in the competitive cloud infrastructure market. Canalys predicts global cloud infrastructure services spending to 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 controls 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) Cloud VMware Fuels Global Shift, Boosts Options
Oracle (ORCL - Free Report) -owned Cloud VMware Solution is gaining traction among global organizations seeking to modernize their IT infrastructure and migrate critical applications to the cloud. Notable companies across diverse industries, including retail giant Ahold Delhaize, manufacturing leader Hitachi Construction Machinery, Ukrainian railway operator Lemtrans and automotive distributor Mazda Motors Logistics Europe N.V., have successfully leveraged this solution to transition from on-premises data centers to Oracle Cloud Infrastructure (“OCI”).
The appeal of Oracle Cloud VMware Solution lies in its ability to streamline the migration process while allowing organizations to maintain control over their VMware environments. This approach enables companies to preserve their existing IT skills, tools and processes, significantly reducing the learning curve and risks associated with cloud migration.
Ahold Delhaize, one of the world's largest food retailers, migrated more than 400 VMware virtual machines supporting its e-commerce, supply chain and retail processes to OCI, effectively eliminating its remaining data center footprint. Similarly, Hitachi Construction Machinery transitioned approximately 500 virtual servers and 100 databases to Oracle's cloud services, resulting in a 20% reduction in infrastructure operating costs and substantial improvements in processing performance.
Lemtrans swiftly relocated its critical processes and databases to the cloud, ensuring business continuity and improved resilience. Mazda Motors Logistics Europe N.V. also achieved its goal of phasing out data centers by consolidating its applications and databases into Oracle's cloud services.
Oracle Enhances Cloud VMware Solution With New Compute Options
To further enhance the capabilities of its Cloud VMware Solution, Oracle has introduced new compute options. The company recently released a new OCI Compute shape featuring an NVIDIA A10 Tensor Core GPU and an Intel Xeon Platinum 8358 Processor. This addition is designed to support a wide range of workloads, including virtual desktop infrastructure, AI inferencing and graphics-intensive applications.
Looking ahead, this Zacks Rank #3 (Hold) company plans to expand its offerings with another compute shape based on the AMD EPYC 9J14 processor. This upcoming option is expected to provide up to 50% more cores per cluster, bringing the latest generation of AMD processors to customers running VMware environments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The new compute options underscore Oracle's commitment to providing customers with enhanced performance and flexibility across diverse workloads. By continually expanding its service capabilities, Oracle aims to solidify its position as a leading provider of cloud infrastructure solutions for organizations seeking to modernize their IT operations while maintaining control over their VMware environments.
Year-to-Date Performance
Image Source: Zacks Investment Research
Oracle Solidifies Cloud Offerings to Fend Off Competition
As more companies recognize the benefits of Oracle Cloud VMware Solution, including simplified migration, improved performance and cost savings, the service is likely to play an increasingly important role in global cloud adoption strategies.
Oracle's focus on preserving customers' existing IT investments while offering advanced cloud capabilities positions it well in the competitive cloud infrastructure market. Canalys predicts global cloud infrastructure services spending to 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 controls 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.