Oracle: Robust Growth and Outlook in Cloud Infrastructure


Oracle (ORCL.US) is a company with strong dominance in the enterprise software market, with its cloud and license divisions being major revenue sources. Leveraging this strong dominance, the transition to the cloud and innovations in AI technology significantly contribute to revenue growth. This article will examine Oracle’s current performance and future outlook.

1. Growth of Cloud Infrastructure

Oracle has recorded remarkable growth in its cloud infrastructure business. During FY2024 Q3 (December to February), Oracle’s cloud infrastructure revenue reached $1.8 billion, up 49% year-on-year. This performance stands out even when compared to major competitors like Microsoft and Amazon AWS. This growth is mainly due to the price competitiveness of Oracle Cloud Infrastructure (OCI) and various growth strategies.

2. Diversified Cloud Strategy

Oracle is advancing a multi-cloud strategy by strengthening its collaboration with Azure. This allows customers to use Oracle Database, MySQL HeatWave, and other services on Azure. Currently, Oracle is building 20 data centers in collaboration with Microsoft and plans to expand partnerships with other hyperscalers like AWS. This strategy contributes to enhancing competitiveness in the cloud market.

3. Performance and Outlook

Oracle’s revenue for FY2024 Q3 was $13.28 billion, up 7.1% year-on-year. Operating income increased by 11.7% to $5.79 billion, and earnings per share (EPS) rose by 15.6% to $1.41. These results generally meet market expectations. Revenue from cloud services and on-premise licenses was $9.96 billion and $1.26 billion, respectively.

4. Challenges and Opportunities in Healthcare IT

Oracle’s healthcare IT subsidiary, Cerner, has faced challenges due to stagnant revenue growth since its acquisition in 2022. However, gradual performance improvement is expected through the launch of the generative AI service Clinical Digital Assistant, applicable in the healthcare industry, and cost-efficiency efforts. Cerner’s management forecasts that performance improvement will be possible from 2025.


Oracle continues to achieve robust growth in the cloud infrastructure market and is enhancing its competitiveness through various strategies. While there are challenges in the healthcare IT sector, future growth is anticipated through innovative AI-driven services. Investors should continuously study related information, keeping an eye on Oracle’s sustained growth.

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