AUSTIN, Texas - In a strategic move to enhance cloud services, Oracle and Amazon (NASDAQ:AMZN) Web Services (AWS) have announced the launch of Oracle Database@AWS. This new service allows customers to utilize Oracle Autonomous Database and Oracle Exadata Database Service within the AWS environment. The integration aims to provide a seamless experience, combining the strengths of Oracle's database technology with the versatility and scalability of AWS.
The partnership was revealed on Monday, with Oracle Chairman and CTO Larry Ellison and AWS CEO Matt Garman set to further discuss the collaboration at Oracle CloudWorld on Tuesday at 1:00 p.m. PDT.
Oracle Database@AWS is designed to streamline the migration and management of enterprise workloads to the cloud, promising improved agility, flexibility, and security. Customers will benefit from the ability to connect their Oracle Database to AWS services, including compute, analytics, AI, and ML offerings. The service is expected to be available in preview later this year, with broader availability planned for 2025.
The collaboration addresses the demand for multi-cloud strategies, allowing customers to run Oracle workloads on AWS. It also offers zero-ETL integration between Oracle Database services and AWS Analytics, as well as backup and disaster recovery options through integration with Amazon Simple Storage Service (Amazon S3).
Customers will have access to flexible migration tools, simplified procurement through AWS Marketplace, and unified support from both companies. The service also supports AWS's multi-Availability Zone architecture for higher availability of applications.
Executives from Best Buy (NYSE:BBY), Fidelity Investments, State Street (NYSE:STT), and Vodafone (NASDAQ:VOD) have expressed support for the partnership, citing the benefits of combining AWS's cloud capabilities with Oracle's enterprise software for their digital transformation efforts.
The announcement is based on a press release statement and represents a significant step in cloud computing, offering customers the combined expertise of Oracle and AWS.
In other recent news, Oracle Corporation (NYSE:ORCL) is poised to release its first-quarter earnings report, with TD Cowen projecting a quarter in line with expectations and approximately 7% constant currency growth. Additionally, Oracle co-founder Larry Ellison is set to gain control of Paramount Global following Skydance Media's acquisition of the Redstone family's stake in the film and television company. The acquisition, backed by Ellison, offers $4.5 billion in cash or stock to Paramount shareholders.
Oracle has also received reaffirmed Buy ratings from TD Cowen, Deutsche Bank (ETR:DBKGn), Edward Jones, and Mizuho, with the latter anticipating Oracle to surpass its fiscal year 2026 targets. Bernstein, on the other hand, has reiterated an Outperform rating on Oracle shares, emphasizing the company's strategic shift toward cloud services.
On the legal front, Oracle has settled a privacy lawsuit for $115 million, while maintaining it did not engage in any wrongdoing. Furthermore, TikTok is challenging the U.S. Department of Justice's mandate for its parent company, ByteDance, to divest its U.S. operations, asserting that its user data is securely stored on U.S.-based Oracle cloud servers. These are recent developments in the ongoing operations of Oracle Corporation.
InvestingPro Insights
In light of Oracle's strategic partnership with AWS to enhance cloud services, it's important to consider the company's financial health and market position. According to InvestingPro data, Oracle currently boasts a substantial market capitalization of $385.57 billion, reflecting its significant presence in the technology sector. The company's P/E ratio stands at 36.89, suggesting that investors are willing to pay a higher price for earnings, possibly due to expectations of future growth or Oracle's stable earnings track record.
Oracle's commitment to shareholder returns is evident, as it has raised its dividend for 10 consecutive years and maintained dividend payments for 16 consecutive years, according to InvestingPro Tips. This consistency in returning value to shareholders may be attractive to investors looking for stable income streams.
Furthermore, Oracle's revenue growth over the last twelve months as of Q4 2024 was 6.02%, indicating the company's ability to increase its sales and potentially its market share. With the new collaboration with AWS, Oracle's positioning within the cloud services space is likely to be further strengthened, potentially impacting future revenue growth.
For investors interested in Oracle's financials and strategic moves, there are additional InvestingPro Tips available at https://www.investing.com/pro/ORCL, offering deeper insights into the company's performance and market valuation.
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