Oracle ORCL is establishing a cloud region in Colombia, reflecting its commitment to the country's technological advancement. The company is aimed at accelerating the adoption of cloud solutions, democratizing access to technology and supporting organizations in modernizing and growing in a competitive business environment.
The new cloud region in Bogotá is part of Oracle's distributed cloud strategy. It marks Oracle's 47th public cloud region and offers more than 100 Oracle Cloud Infrastructure (“OCI”) services and cloud applications, including Autonomous Database, MySQL HeatWave Database Service, Oracle Container Engine for Kubernetes, Oracle Cloud VMware Solution and AI infrastructure.
The partnership between Oracle and Claro, co-locating the cloud region in Claro's data center in Bogotá, is seen as a significant milestone in Colombia's technological evolution. The new region is expected to accelerate the digital transformation of businesses, including small and medium-sized enterprises, which make up 90 percent of businesses in Colombia.
The establishment of the public cloud region is viewed as a positive development for Colombia's economy. The Colombian government acknowledges the impact of public cloud infrastructure on the country's economy and is designing plans to leverage cloud capabilities for data and analytics and train specialized digital talent.
Claro's data center is certified with ICREA 5. The partnership with Oracle aims to provide organizations in Colombia and neighboring countries, such as Peru, Ecuador and Panama, with access to innovative cloud services with low latency and high availability.
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OCI Ecosystem & Connectivity to Aid the Top Line
Oracle is expected to benefit from rising worldwide cloud infrastructure service spending, which gained 16% sequentially to $73.5 billion in the third quarter of 2023. Shares of Oracle have rallied 37.1% year to date compared with the Zacks Computer and Technology sector’s increase of 44.6%.
In the third quarter of 2023, the top three vendors, Amazon’s AMZN division, Amazon Web Services (“AWS"), Microsoft’s MSFT Azure and Alphabet’s GOOGL Google Cloud, jointly grew by 20%, slightly outpacing the overall market and accounting for 65% of the total spending.
AWS continued to dominate the cloud infrastructure service market in the third quarter of 2023, with a stable market share of 31%. The year-over-year growth of 12% was in line with the previous quarter.
Meanwhile, Microsoft’s Azure held the second place in the cloud infrastructure service market in the third quarter of 2023 with a 25% market share. It saw an uptick in its growth rate, which was up 29% compared with last year’s third quarter. Google Cloud reached a market share of 10% in the third quarter of 2023 after growing 24% year over year, securing third place in the cloud infrastructure service market.
OCI aims to provide a comprehensive and sustainable cloud solution, leveraging a global ecosystem of partners, emphasizing renewable energy, showcasing successful customer stories and offering a distributed cloud model for enhanced control and flexibility. OCI has a vast network of more than 90 global and regional FastConnect partners. These partners provide dedicated connectivity to Oracle Cloud Regions and OCI services.
FastConnect is positioned as an easy, flexible and cost-effective solution for creating private network connections with benefits such as higher bandwidth, lower latency and consistent performance. Notable FastConnect partners for the Oracle Cloud Bogotá Region include Cirion, Claro, Equinix and Ufinet.
Oracle is also focused on sustainable operations, which emphasizes its commitment to sustainability by pledging to match all worldwide Oracle Cloud Regions with 100% renewable energy by 2025. Several Oracle Cloud Regions already operate on 100% renewable energy. The move toward renewable energy is aimed at allowing organizations to run computing services more sustainably and reduce their carbon footprint.
Oracle and its asset recovery partners highlight their contribution to sustainability by recycling 99.7% of retired hardware collected in the fiscal year 2023.
Banco Falabella, a banking institution serving millions of customers across Latin America, is mentioned as an example of a successful customer leveraging Oracle Cloud services. The bank is using Oracle Cloud Santiago Region and plans to use the Oracle Cloud Bogotá Region to modernize its banking core and implement a digital strategy.
This Zacks Rank #3 (Hold) company’s cloud regions are credited with reducing critical process times, enhancing stability, technological robustness, resilience and scalability and providing competitive advantages. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle's distributed cloud is highlighted as offering customers the benefits of the cloud while providing greater control over operations, data residency and proximity. Low latency is emphasized, even for operations spanning multiple clouds. Oracle manages a total of 66 cloud regions across 26 countries, encompassing both public and dedicated regions.
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