Oracle was founded by Larry Ellison in 1977. (Screenshot: Oracle)
Oracle said on Tuesday it expects revenue in its Oracle Cloud Infrastructure business to grow 77% this year, from earlier projections of 70%, boosted by growing cloud demand and sending its shares up 23% after the bell.
The company forecasts OCI revenue to rise 77% to $18 billion this fiscal year and on to $144 billion over the subsequent four years.
Oracle also said it had signed four multi-billion-dollar contracts with three different customers in the first quarter, helping a 12% increase in revenue to $14.93 billion.
“Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars,” said CEO Safra Catz.
Remaining performance obligations, or RPO, the most popular measure of booked revenue, jumped 359% to $455 billion in the first quarter ended August 31.
“Enterprises are clearly eager for cost-effective AI cloud tools, and Oracle is positioning itself to capture that demand,” said eMarketer analyst Jacob Bourne.
Oracle offers integrated cloud technologies along with flexible deployment models. It has struck deals with Amazon , Alphabet and Microsoft for OCI to run inside their respective cloud infrastructure, expanding Oracle’s total addressable market.
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“MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in the first quarter,” said Chairman Larry Ellison.
“We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71.”
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