Oracle (ORCL) Rolls Out Multi-VM Autonomous Database

Oracle ORCL recently announced the expansion of its Exadata Cloud@Customer service with the availability of Multi-VM Autonomous Database.

Oracle Exadata combines hardware and software in a single solution to provide database provisioning and management.

The availability of the Multi-VM Autonomous Database will enable organizations to create and run autonomous and non-autonomous database deployments on the same infrastructure. This will aid organizations in choosing the optimal database for each employee and also lower costs.

The latest update is available at no extra cost via an over-the-air update for existing Exadata Cloud@Customer customers.

Oracle Corporation Price and Consensus

Oracle Corporation price-consensus-chart | Oracle Corporation Quote

Lucrative Digital Transformation Market Bodes Well

Per a Mordor Intelligence Report, the global digital transformation market is projected to witness a CAGR of 17.42% between 2021 and 2026 and reach $2,744.68 billion.

The rapid proliferation of innovative technologies like Big Data, robotics, Artificial Intelligence (AI), Internet of Things (IoT) and rapid migration to cloud along with accelerated 5G deployment is driving the market. Also, pandemic-triggered work from home, online learning and telehealth trends have been major catalysts, added the report.

Enterprises are rapidly implementing extensive digital transformation efforts to cater to changing consumer preferences by providing innovative/advanced products and services. Digital transformation also helps optimize costs and assists in complying with evolving regulations.

Oracle is steadily gaining ground, especially in the cloud migration domain. Solid uptake of Exadata cloud solutions and Autonomous Database offerings along with healthy demand for the Oracle Dedicated Region Cloud@Customer are driving the company’s top line.

For the fiscal third quarter, Oracle’s Cloud services and license support revenues (73% to total revenues) in the reported quarter increased 5% year over year (up 8% at cc) to $7.637 billion. The upside can be attributed to continued strength in the Fusion, Autonomous Database and Oracle Cloud Infrastructure (OCI) services.

In the fiscal third quarter, management noted that the company’s total cloud revenues on annualized basis stood at $11.2 billion and were up 26%. Management added that the strategic back-office cloud applications business increased 29% and the strategic back-office cloud applications business now has $5.1 billion in annualized revenues.

Oracle shares are up 20.8% in the past year compared with the Zacks Computer - Software industry’s return of 11.4% and the Computer and Technology sector’s decline of 4.5%.

In September 2021, Oracle introduced Oracle Exadata X9M platforms, which include Oracle Exadata Database Machine X9M and Exadata Cloud@Customer X9M — the only platform that runs Oracle Autonomous Database in customer data centers.

During the same time, Oracle and Telefonica S.A. TEF inked a multi-year agreement to ramp up the migration of the latter’s mission-critical database systems on to Oracle cloud platform and develop new communications services.

Per the agreement, Telefonica shifted most of its Oracle Database systems to the Oracle Exadata Cloud@Customer platform.

Earlier in 2021, Oracle signed a multi-year partnership to help Deutsche Bank ramp up its digital transformation efforts. Per the deal, Deutsche Bank decided to transfer its Oracle Database estate to Oracle Exadata Cloud@Customer while overhauling its current database system.

Oracle’s Exadata Cloud@Customer service offering is witnessing steady traction among on-premise customers.

In the fiscal third quarter, consumption revenues for OCI services, which includes Autonomous Database, soared 93% at cc. Cloud customer consumption revenues increased 43% year over year. Noteworthy wins in the last reported quarter include Deutsche Bank, City of Atlanta and State of Kansas

Oracle is expanding its worldwide cloud region footprint to support its cloud services. The company unveiled a cloud region in France (Marseilles), Singapore and the United Arab Emirates, taking the total number of cloud regions to 34 at present. Oracle is planning to have 44 cloud regions by the end of 2022.

Zacks Rank and Stocks to Consider

Oracle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are some better-ranked stocks worth considering in the broader Computer and Technology Sector:

Advanced Micro Devices AMD flaunts a Zacks Rank #1 (Strong buy).

AMD shares are up 39.6% in the past year compared with the Zacks Electronics - Semiconductors industry’s return of 9.9% and the Computer and Technology sector’s fall of 4.6%.

Apple AAPL has a Zacks Rank #2 (Buy).

AAPL shares have returned 27.9% in the past year compared with the Zacks Computer - Mini computers industry’s rise of 24.8% and the Computer and Technology sector’s fall of 4.5% in the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.