# 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.
- Title: Oracle's cloud growth hits 121% with new business model
- Summary: 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…
- Keywords: oracle, oci, cloud infrastructure, clay mcguirk, business model innovation, hyperscalers, revenue growth, remaining performance obligation, data centers, Oracle's, cloud, growth
- Source: Cloud Wars — https://cloudwars.com/cloud-wars-minute/big-question-for-oracle-cloud-ai-business-how-high-can-it-go
- Author: Bob Evans
- Published: 2026-09-15T11:30:00+00:00
- Read time: 1 min
- Topics: oracle, oci, cloud infrastructure, clay mcguirk, business model innovation, hyperscalers, revenue growth, remaining performance obligation, data centers, ai
## 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.
## Key takeaway

Oracle is using innovative payment models to accelerate cloud growth without massive upfront spending.