From Cloud Wars · Bob Evans · · 1m 10s
Oracle's cloud growth hits 121% with new business model
Oracle's cloud infrastructure is exploding, and it's not just the tech driving it.
In brief
Oracle's cloud infrastructure is exploding, and it's not just the tech driving it. Oracle is using innovative payment models to accelerate cloud growth without massive upfront spending. Originally reported by Cloud Wars.
Oracle cloud revenue jumps 62%
Oracle reported Q1 cloud revenue of $11.6 billion, up 62%. Cloud infrastructure brought in $7.4 billion, with OCI growing at 121%.
Massive backlog waiting to convert
Oracle's remaining performance obligation jumped 46% to $664 billion. This enormous backlog hasn't been recognized as revenue yet.
Growth rate keeps climbing higher
OCI's growth rate has been rising steadily over recent quarters. The 121% rate is expected to climb even more as the giant backlog converts to revenue.
Suppliers defer payment until customers pay
Suppliers are willing to defer payment Oracle owes them until Oracle customers start paying for data center services.
Customers supply hardware and prepay
Customers are providing some hardware themselves and paying in advance. Companies from startups to giants are putting together big pools of money upfront.
“From startups to big established companies, customers are putting together big pools of money and are willing to pay in advance for the services they want.”
New model beats blunt-force spending
Hyperscalers need to figure out how to deliver services customers want without requiring massive vendor spending upfront.
What matters most
Oracle is using innovative payment models to accelerate cloud growth without massive upfront spending.
