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Oracle (ORCL) Cloud Fuels Panasonic's Digital Transformation

Oracle ORCL announced that its Exadata Database Service on Oracle Cloud Infrastructure (“OCI”) has been chosen by Panasonic Information Systems Co., Ltd. (“Panasonic IS”), the IT arm of Panasonic Holdings Corporation, to power its extensive internal systems migration in a significant move that underscores the growing adoption of cloud-based solutions among global enterprises.

This strategic decision not only highlights Oracle's strengths in delivering high-performance, cost-effective cloud database solutions but also signals a broader industry shift toward modernizing IT infrastructure to maintain competitiveness in a rapidly evolving digital landscape.

Panasonic IS' ambitious project involves migrating more than 2,000 database environments from hundreds of internal systems to Oracle's cloud platform. The initial phase, which saw the successful transition of 30 systems from on-premises to the cloud, has already yielded impressive results, with Panasonic IS reporting a nearly 50% reduction in database infrastructure costs. Such substantial savings early in the migration process bode well for the potential long-term financial benefits of this large-scale cloud adoption.

A standout achievement in this migration is the transfer of Panasonic Group's sales data analytics system, one of its largest internal systems, to OCI. This system, which manages consumer electronics sales information in Japan, boasts 30TB of data and serves 18,000 employees. The successful migration of such a critical and data-intensive system underscores Oracle's capability to handle enterprise-grade workloads without compromising performance or security.

From Oracle's perspective, this engagement with Panasonic IS exemplifies the value proposition of Exadata Database Service on OCI.

However, the journey is far from complete. With hundreds of internal systems still to be migrated, Panasonic IS and Oracle face the ongoing challenge of maintaining momentum and replicating early successes. The ultimate goal is not just migration but the creation of the best hybrid platform that optimizes each system's environment — a nuanced approach that balances the benefits of public cloud with specific workload requirements.

Oracle Corporation Price and Consensus

Oracle Corporation Price and Consensus
Oracle Corporation Price and Consensus

Oracle Corporation price-consensus-chart | Oracle Corporation Quote

Oracle Doubles Down on Strategic Alliances to Drive Revenue Growth

In a bid to accelerate top-line expansion, Oracle is intensifying its focus on forging and fortifying strategic partnerships across various sectors. Shares of ORCL have gained 33.1% year to date compared with the Zacks Computer and Technology sector’s growth of 9.8%. This outperformance can be attributed to the expanding capabilities of the company.

The Zacks Consensus Estimate for ORCL’s fiscal 2025 revenues is pegged at $57.45 billion, indicating year-over-year growth of 8.48%. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $6.14 per share, down a penny over the past 30 days. The figure indicates year-over-year growth of 10.43%.

As industries continue to grapple with technological disruption and economic uncertainties, partnerships like that between Panasonic IS and Oracle illuminate a path forward. By leveraging cloud services, such as Exadata Database Service on OCI, enterprises can not only streamline their operations and reduce costs but also position themselves to rapidly adapt to future challenges and opportunities in an increasingly digital world.

One notable alliance is Oracle's deepening relationship with Microsoft MSFT. The two tech behemoths have been working together to offer interconnected cloud services, allowing customers to run workloads across Microsoft Azure and Oracle Cloud. This interoperability not only enhances ORCL's cloud proposition but also opens doors to MSFT's vast customer base.

In the burgeoning field of AI, Oracle has partnered with NVIDIA NVDA to bring the latter's GPUs to its cloud infrastructure. This collaboration positions ORCL to meet the escalating demand for high-performance computing resources required for AI and machine learning applications, potentially attracting a new cohort of clients.

ORCL's strategic alliance with Google Cloud, a subsidiary of Alphabet GOOGL, enables customers to seamlessly integrate OCI with Google Cloud's technologies, thereby accelerating application migrations and modernization initiatives. The collaboration's initial rollout spans 11 global regions, where Google Cloud's Cross-Cloud Interconnect eliminates cross-cloud data transfer charges for deploying workloads, reducing barriers to adoption and fostering a more fluid multi-cloud environment.

As Oracle continues to navigate the dynamic tech landscape, this Zacks Rank #4 (Sell) company’s success will likely hinge on how effectively it can translate these partnerships into tangible revenue gains.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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