Safra Catz, Oracle CEO: We plan to add six more regions in FY2023, in addition to 38 cloud regions in the 20 countries where we already serve our customers. Photo credit: DR
Oracle’s growing revenue from cloud infrastructure services and SaaS sales is driving the company to extensively expand its cloud regions.
Demand for cloud infrastructure, along with rising Software-as-a-Service (SaaS) sales, boosted Oracle’s revenue in the fourth quarter of fiscal 2022, but the acquisition of Health technology company Cerner had $ 15.8 billion in debt. Last Monday, after announcing the financial results in a conference call with analysts, Oracle CEO Safra Catz said the vendor will increase capital expenditures in the next financial year to meet demand for cloud services. We plan to add six more regions in fiscal 2023, in addition to 38 cloud regions in the 20 countries where we already serve our customers, Ms. Catz, according to the Seeking Alpha transcript. Emphasizing the growth of key accounts, Oracle President and CTO Larry Ellison said many high-profile customers signed up with Oracle in the quarter, citing United Healthcare, the New South Wales Department of Health, Citibank, Chubb, PNC, SMBC, Overseas China Banking Corporation, Mizuho, Mitsui Sumitomo, financial services firm GMP and Abercrombie Fitch.
Cross-selling, a good recipe for revenue generation?
Taking advantage of the impact of the previous quarter, Oracle announced total turnover of 11.8 billion dollars, taking into account the impact of currency fluctuations, an increase of 5% compared to last year. The company’s total cloud revenue (IaaS and SaaS) was $ 2.9 billion, up 19% from last year, driven by demand for cloud products of any kind, in particular Oracle Cloud Infrastructure (OCI). Typically, these steady increases in our quarterly revenue growth rate come from our market-leading Fusion and NetSuite cloud applications, Ms. Catz. But for this fourth quarter, it was the demand for cloud infrastructure that rose sharply, by a 39% constant exchange rate, he added. The Oracle CEO clarified that this growth momentum comes from current Oracle customers expanding their footprint. Fusion customers purchase Oracle Cloud Infrastructure (OCI). OCI customers are buying Fusion and NetSuite, Safra Catz said, adding that this phenomenon should translate into incremental growth in the coming quarters. Database clients pass autonomy to OCI. Vertical industry customers are entering Fusion. We have real momentum in all areas, he added.
Growth that must continue
Despite the volatile macro environment, Ms. believes. Catz said the company will continue its cloud revenue momentum into the next financial year, supported by Cerner and Oracle’s acquisition of investment in new regions. cloud. For Q1, the overall cloud, excluding Cerner, is expected to grow 25% -28% in the currency constant and 22% -25% in the dollar, he added. Total cloud growth in Q1, including Cerner, is expected to grow 47% -50% currency constant, and 44% -47% in the dollar. Additionally, the Oracle CEO said the company is reviewing its entire product portfolio to identify areas where it can incorporate Oracle technology instead of third-party products, and move them to OCI. . . In the financial services industry, the vendor works with major banks and leading logistics companies to automate business-to-business commerce directly within the Oracle ERP Cloud, Ellison said in a results conference call on finance. . In addition, the latter said the company is focusing on the healthcare and financial services sectors to increase revenue in the cloud.
Cerner, Oracle’s next major activity
Asked how Cerner’s purchase fits into the national medical records database project, the Oracle president said Cerner could be Oracle’s largest business because it solves two problem evaluations. On the one hand, the National Medical Records Database solves two problems: it allows patients, in the event of an emergency, to ensure that their carers have immediate access to all of their medical records, leading to better results for people, Mr. Ellison said. On the other hand, public health officials will get better information about the health status of their country, he added.
Announced on December 20, 2021, Oracle’s acquisition of Cerner worth $ 28.3 billion is expected to play a key role in how Oracle builds its healthcare suite. We are modernizing Cerner’s clinical systems by adding capabilities including a voice user interface and applications that contain AI models specific to cancers and other diseases. We’re integrating a network of IoT devices to improve patient diagnosis and monitoring, Ellison said, indicating that these same devices can be used throughout the healthcare suite. Other possible additions include inventory management systems, administrative systems, including applications for labor contract management, recruitment, scheduling, and payment options. Mr. Ellison also indicated that Oracle is planning other integrations, for example, connecting the clinical trial system directly to the hospital’s clinical system to help pharmaceutical companies, as well as automating payment systems. and billing to facilitate the work of insurance companies and government organizations.