Oracle has successfully closed a significant cloud migration deal with Hitachi Construction Machinery Co., Ltd., choosing its Oracle Cloud Infrastructure (“OCI”) platform for the transition. Hitachi Construction Machinery plans to migrate its enterprise systems across various departments like accounting, development, production, and sales as part of its digital transformation strategy. The migration involves leveraging Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI, resulting in performance improvements and cost reductions for the company.
Hitachi Construction Machinery highlighted OCI’s capability to securely migrate mission-critical databases running in Oracle Exadata and VMware virtualization environments without extensive reconfiguration as a key factor in choosing Oracle. The migration involves around 500 virtual servers and 100 databases, with benefits like improved architecture, increased automation, improved performance, and optimized costs. The company is also implementing a new disaster recovery environment using Oracle Cloud’s Tokyo and Osaka regions for enhanced business continuity.
In the competitive cloud services market, Oracle’s agreement with Hitachi Construction Machinery signifies a significant win, especially in the industrial sector where robust and reliable cloud solutions are essential for mission-critical systems. Cloud services are experiencing a resurgence driven by customer engagement with hyperscalers and the rising demand for AI applications. Oracle aims to further consolidate its position in the cloud market by offering a comprehensive DX platform with AI and multicloud capabilities in the future.
With the global cloud infrastructure market expanding, Oracle faces competition from cloud giants like AWS, Microsoft Azure, and Google Cloud. AWS currently holds the largest market share followed by Azure and Google Cloud, collectively controlling 67% of the market. Oracle is positioning itself as a hyperscaler capable of delivering a full suite of cloud services across dedicated, public, and hybrid environments globally.
In the first quarter of fiscal 2025, Oracle expects total cloud services revenue to grow by 21% to 23% in constant currency and 20% to 22% in dollar terms. The company anticipates cloud infrastructure services to grow 50% faster in fiscal 2025 compared to fiscal 2024. As the demand for cloud services, AI applications, and hyperscalers continues to rise, Oracle is strategically positioning itself to capitalize on this growth and strengthen its presence in the competitive cloud market.
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