Oracle (ORCL) Lands Cloud Deal With Hitachi Construction

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Oracle recently closed a significant cloud migration deal with Hitachi Construction Machinery Co., Ltd., selecting Oracle Cloud Infrastructure (OCI) as the platform to migrate its enterprise systems. Hitachi Construction Machinery aims to enhance its digital transformation efforts by unifying data across departments like accounting, development, production, and sales and preparing for future AI integration.

The migration project utilizes Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI to seamlessly transition critical systems without extensive changes to existing applications and databases. This approach has led to notable performance improvements, such as a 50% increase in online transaction processing and a 60% increase in batch processing performance. Additionally, the company has reduced infrastructure operating costs by 20%.

The scale of the migration initiative involves approximately 500 virtual servers and 100 databases, with benefits including improved architecture, increased automation, enhanced performance, and cost optimization. Hitachi Construction Machinery is also establishing a new disaster recovery environment using Oracle Cloud’s Tokyo and Osaka regions to bolster business continuity.

Looking forward, Hitachi Construction Machinery plans to further modernize its applications to cloud-native OCI and migrate remaining databases from on-premises environments, aiming to build an expansive digital transformation platform utilizing AI and multicloud capabilities.

This agreement is a significant win for Oracle in the competitive cloud services market, particularly within industries like manufacturing that require robust and high-performance cloud solutions for mission-critical systems. The company continues to consolidate its position in the global cloud services market by offering a comprehensive suite of services and solutions across dedicated, public, and hybrid cloud environments worldwide.

Competition in the cloud sector is fierce, with major players like AWS, Azure, and Google Cloud vying for market dominance. Despite this competition, Oracle’s strategic focus on AI and a wide range of cloud services sets it apart as a leading hyperscaler in the industry. The company expects significant revenue growth in its cloud infrastructure services and remains optimistic about its position in the evolving cloud landscape.

As cloud services continue to gain momentum and demand for AI applications rises, Oracle’s cloud migration agreement with Hitachi Construction Machinery showcases its ability to deliver robust, reliable, and performance-driven solutions that meet the evolving needs of modern enterprises.

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https://finance.yahoo.com/news/oracle-orcl-secures-cloud-contract-120100253.html