Oracle's Cloud Business In India Surges: 100% Consumption Growth, 2x Jump In Public Sector Vertical
Oracle says it experienced robust growth in FY23 with a focus on cloud services and emerging sectors. The company’s cloud services in the country saw an overall 100 per cent consumption growth in FY23, showcasing India's trajectory in the cloud industry.
“Oracle cloud consumption is on the rise. Business in India has been on an upswing and customers are sharing excellent results on the business benefits they get with Oracle Cloud – be it large or midsize firms, in any industry,” said Srikanth Doranadula, Group Vice President, Technology and Systems, Oracle India. “India's cloud computing market grew by 125 per cent for Oracle in the first half of FY23.”
The company witnessed a significant increase in cloud consumption, with renewal rates surpassing 74 per cent for FY23. The Cloud@Customer offering, which allows Oracle customers to meet data residency, security, and low-latency connectivity requirements, experienced a growth of 35 per cent year-on-year (YoY). The public sector vertical alone grew over twofold in the year.
Doranadula told BW Businessworld that the company’s government business has grown 2.4 times in the last fiscal and large number of customers in Tier-2 and Tier-3 cities also moved to Oracle Cloud Infrastructure (OCI) in FY23.
The public sector, telecom, banking, healthcare, manufacturing, and automobile industries are among the key growth sectors for Oracle in India. The company is also targeting emerging sectors such as e-commerce, retail, professional services, and the startup space, including EdTech, Fintech, and HealthTech. Oracle is looking to provide cost optimisation, efficiency, performance, security, and innovation to its customers in these sectors.
Numerous mid-sized customers, including Polycab India Limited, Focus Edumatics, and Acute Informatics, have migrated to Oracle Cloud Infrastructure (OCI). Oracle's small and medium-sized business (SMB) segment, known as the Digital team, has consistently achieved over 100 per cent growth for the past three years.
Globally, for the fiscal quarter ended 31 May, Q4 revenue reached USD 13.8 billion, with infrastructure cloud revenue (IaaS) growing by 77 per cent to USD 1.4 billion. The cloud services and license support revenue for Q4 was USD 9.4 billion, a 25 per cent increase in constant currency. For the entire fiscal year 2023, Oracle achieved a total revenue of USD 50 billion, up 22 per cent in constant currency, with cloud services and license support revenues growing by 21 per cent to USD 35.3 billion.
“Oracle’s recent earnings results show we are growing. Today, we are the world’s fastest-growing major cloud provider, with a cloud growth rate at 45 per cent. We are expanding across markets and geographies with our differentiated and comprehensive cloud offerings through our cloud regions (we have 41 so far),” said Doranadula.
Looking ahead, Oracle believes that multi-cloud environments and hybrid cloud solutions will play a pivotal role in driving cloud demand in FY24, said Doranadula. The company's flagship product, Oracle Cloud Infrastructure (OCI), enables customers to combine services from multiple clouds, optimise costs, and modernise their databases and applications. Additionally, Oracle's dedicated regions, Alloy, and strong focus on SMBs further contribute to its market strength.
As global uncertainties persist, Oracle remains confident in its growth prospects, emphasising its strong performance and expansion across markets and geographies. The company's differentiated cloud solutions, extensive cloud region network, and commitment to customer success position it as a leading cloud provider in the industry.
