Oracle Stock: the Company Helps SymphonyAI in Providing IT Solutions on the Cloud

Oracle Stock

Oracle Stock (NASDAQ:ORCL)

Oracle (NASDAQ:ORCL) and SymphonyAI recently announced a partnership in which Oracle will offer SymphonyAI solutions on Oracle Cloud Infrastructure (OCI) by leveraging key services such as Oracle Exadata Database Service, GPU-accelerated computes, and performance monitoring.

SymphonyAI develops focused artificial intelligence (AI) applications to solve challenging business problems and deliver breakthrough insights, increasing customer operational efficiencies, and revenue growth.

OCI Application Performance Monitoring provides deep visibility into application performance and enables development teams to quickly diagnose issues, allowing them to provide a consistent level of service.

While working to improve their operations and find new ways to overcome these obstacles, retailers and CPGs continue to face the pressures of supply chain delays, increased customer demands, and forecasting uncertainties. SymphonyAI’s collaboration with Oracle will enable it to assist its clients in harnessing the power of cloud flexibility and cost efficiencies for real-time insights and recommendations.

Prospects Will Benefit From the Availability of Comprehensive Cloud Solutions

Oracle is upgrading and expanding its cloud solutions portfolio to meet the growing demand for cloud security. As businesses worldwide migrate to the cloud, the company has seen an increase in demand for its software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service products.

Management reported that the company’s IaaS and SaaS business grew 22% to $2.7 billion in the fiscal second quarter.

According to a Gartner report, 45% of global organizations will have experienced supply chain attacks by 2025, nearly three times more than in 2021. Security breaches and data exposures are increasing as more organizations across industries, from retail to financial services, shift the majority of their critical workloads to the cloud. Implementing hybrid work and digital business processes in the cloud introduced new risks.

Oracle has also benefited from strong demand for its infrastructure cloud services, driving Oracle stock higher. 

Companies such as MercadoLibre, Xactly, 8×8, and Zoom Video Communications chose Oracle Cloud Infrastructure services to meet business needs, demonstrating the strength of Oracle’s cloud offerings. The cloud services offering has introduced a new source of recurring revenue (subscriptions), which is expected to increase visibility.

Oracle and NVIDIA (NASDAQ:NVDA) announced a multi-year partnership in the second quarter of fiscal 2023 to help customers solve business challenges with accelerated computing and artificial intelligence. The collaboration intends to bring the entire NVIDIA accelerated computing stack to OCI, from GPUs to systems to software. OCI is expanding its capacity by tens of thousands of NVIDIA GPUs, including the A100 and the upcoming H100.

With Oracle’s partnership with NVIDIA, OCI provides GPU-accelerated compute services to SymphonyAI’s customers, allowing them to rapidly train AI models to forecast purchasing trends, ensuring that each customer’s store has the optimal number of products in the right place on the shelves.

The increased global availability of Oracle cloud regions is expected to strengthen the company’s competitive position in the cloud computing domain. Oracle announced Thursday that it opened its fourth cloud region in the United States for private and public sector partners and customers last month. This is the company’s 41st cloud region globally, and it joins an existing cloud region for government organizations.

Despite its late entry, Oracle has been attempting to capture a larger share of the potential cloud market, which is dominated by Amazon (NASDAQ:AMZN).

According to Synergy Research Group estimates, Amazon’s market share in the global cloud infrastructure market will be 34% in the third quarter of 2022, still exceeding the combined market shares of its two largest competitors, Microsoft Azure and Google Cloud, which are 21% and 11%, respectively.

Global cloud infrastructure service spending increased to $57 billion in the third quarter of 2022, bringing the industry total for the previous 12 months to $217 billion. In the three months ending September 30, Amazon, Microsoft, and Google accounted for two-thirds of cloud infrastructure revenues, with the eight largest providers controlling more than 80% of the market.

Oracle stock has gained more than 4% over the past year, and nearly 7% year-to-date.

Featured Image: Unsplash @ BoliviaInteligente

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About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.