Contents
5 minutes read
14 June 2025
Oracle has been around since 1977. For decades, it ruled the database world with an iron fist. But 2025 tells a different story. The tech giant is experiencing a remarkable transformation that's catching everyone's attention.
What changed? Oracle went all-in on cloud computing. The results speak for themselves.
The numbers don't lie about Oracle's cloud success.
Cloud Infrastructure (IaaS) revenue grew 52% YoY to $3 billion, while Cloud Applications (SaaS) revenue rose 12% YoY to $3.7 billion in their recent quarter. These aren't small wins. They're massive victories in a competitive market.
The company's total cloud revenue hit impressive heights. Cloud revenue growing 27% to $6.7B shows Oracle isn't just participating in the cloud race—it's winning.
However, what makes this transformation truly special is... Oracle was late to the cloud party. Amazon and Microsoft had a head start. Yet Oracle found its unique path forward.
From database king to cloud powerhouse
Oracle built its reputation on databases. Every major company uses Oracle databases. They were reliable, robust, and expensive. But the cloud changed everything.
Companies wanted flexibility. They tried to scale up and down quickly. They wanted to pay for what they used. Traditional on-premise databases couldn't deliver this.
Oracle faced a choice. Stick with the old model or embrace change. They chose transformation.
The transition wasn't easy. Oracle had to rebuild its entire business model. They had to retrain their sales teams. They had to convince customers to trust their cloud offerings.
Most importantly, they had to prove they could compete with established cloud leaders.
AI is driving Oracle's cloud momentum.
Artificial intelligence changed the game for Oracle. Oracle CEO Safra Catz on Monday gave a strong growth outlook for its fiscal 2026 and 2027, indicating that the skyrocketing demand for advanced artificial intelligence computing shows no signs of slowing down.
Companies need massive computing power for AI workloads. Oracle's cloud infrastructure delivers precisely that. Their specialised AI services enable businesses to deploy machine learning models more efficiently.
"AI is unquestionably the largest development innovation that we see," Miranda said. "It impacts everything—from how we market and service our customers to how we build our products and run internal operations".
Oracle isn't just talking about AI. They're building the infrastructure that powers it. Their cloud platform handles the heavy lifting, allowing businesses to focus on innovation.
The infrastructure investment tells the story.
Oracle is investing heavily in cloud infrastructure. The company projects that its capital expenditures (capex) will exceed $25 billion in fiscal 2026, up from $21.2 billion in fiscal 2025, with the "vast majority" of it dedicated to revenue-generating data centre equipment.
This investment shows commitment. Oracle is no longer testing the waters. They're diving deep into cloud infrastructure.
The strategy makes sense. As more companies move to the cloud, they need reliable infrastructure. Oracle is building that foundation.
Their data centres are expanding globally. They're adding new regions and services. Every investment strengthens its competitive position.
Why enterprises are choosing Oracle cloud
Oracle's cloud success isn't accidental. They understand enterprise needs better than most competitors.
Enterprise customers need security. Oracle built security into every layer of its cloud platform. They offer isolated cloud computing for sensitive workloads.
Enterprise customers need performance. Oracle's cloud infrastructure delivers consistent, high-performance computing power. Their specialised services handle demanding workloads.
Enterprise customers need integration. Oracle's cloud services work seamlessly with existing Oracle databases and applications. This makes migration easier and less risky.
Consider the following example: A large financial services company utilises Oracle databases for its critical operations. When they decide to move to the cloud, Oracle offers a clear path forward. They can migrate their existing systems while adding new cloud-native capabilities.
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The competitive landscape is heating up.
Oracle faces tough competition. Amazon Web Services dominates the market. Microsoft Azure is growing rapidly. Google Cloud is aggressively targeting enterprise customers.
But Oracle has advantages. Their deep enterprise relationships matter. Companies trust Oracle with their most critical data. That trust translates to cloud opportunities.
Oracle's Fusion Cloud ERP and NetSuite Cloud ERP continue to gain traction, with year-over-year growth of 16%. These applications run on Oracle's cloud infrastructure. They give Oracle a competitive edge in the enterprise market.
Oracle also benefits from the growing demand for AI. Their infrastructure is optimised for AI workloads. As AI adoption grows, so does Oracle's cloud business.
Financial results demonstrate that the transformation is effective.
The financial numbers validate Oracle's cloud strategy. The company expects fiscal 2026 revenue to grow by 15%, while fiscal 2027 revenue is forecast to increase by 20%, both surpassing analysts' estimates.
These projections show confidence. Oracle believes its cloud transformation will continue delivering strong results.
Their remaining performance obligations tell another story. CEO Safra Catz highlighted the record $99 billion in Remaining Performance Obligations (RPO), up 53% year-over-year, as a strong predictor of increased revenue growth throughout FY25.
RPO represents future revenue from signed contracts. A 53% increase indicates that customers are committing to Oracle's cloud services on a long-term basis.
What does this mean for businesses and investors
Oracle's transformation creates opportunities for different stakeholders.
For businesses, Oracle offers a reliable cloud alternative. Companies can reduce their dependence on dominant cloud providers. They can leverage Oracle's enterprise expertise and specialised services.
For investors, Oracle represents a successful transformation story. The company reinvented itself without losing its core strengths. They're growing in a high-growth market while maintaining profitability.
For the tech industry, Oracle proves that established companies can adapt. They show that late entrants can succeed with the right strategy and execution.
Looking ahead at Oracle's cloud future
Oracle's cloud journey is far from over. The company continues investing in new technologies and capabilities.
They're expanding their AI services. They're building more data centres. They're developing new applications and tools.
The partnerships also matter. Oracle is working with companies like IBM to enhance their cloud offerings. These collaborations expand Oracle's reach and capabilities.
Government contracts provide another growth avenue. Oracle announced on Wednesday that it would provide Singapore's defence technology arm with "isolated" cloud computing and AI services, marking the company's first such deal in Southeast Asia.
Government customers value security and reliability. Oracle's cloud platform delivers both. These contracts can drive significant revenue growth.
Oracle's transformation from a database king to a cloud powerhouse demonstrates the importance of adaptation. The company faced a changing market and chose to evolve. Their success proves that established companies can compete with newer players.
The cloud market will continue growing. Artificial intelligence (AI) is expected to drive increased demand for cloud infrastructure. Oracle is positioned to benefit from both trends.
Their enterprise focus gives them a competitive advantage. Their infrastructure investments support future growth. Their financial results validate their strategy.
Oracle's 2025 story is about transformation, growth, and success. The old-school giant learned new tricks and came out stronger. That's a lesson every business can learn from.
Frequently asked questions about Oracle?
Yes, Oracle is considered a good buy by many analysts after its strong Q4 2025 results, robust cloud growth, and positive outlook. However, the stock trades at a premium valuation, making it somewhat vulnerable to negative news, but its growth prospects and financial health are strong.
Oracle is expected to continue its transformation into a leading provider of cloud and AI infrastructure. Analysts project revenue growth at a compound annual rate of 8–16% through 2029, with the potential for its market capitalisation to approach $900 billion or even $1 trillion if the momentum of cloud and AI persists.
