Oracle India Reports Stellar 52% Cloud Growth In Q3 FY24
The company’s Small and Medium Business (SMB) segment achieved an impressive growth rate exceeding 73 per cent YoY for the same period
Oracle India reported a decent 52 per cent year-over-year (YoY) increase in cloud consumption during Q3 FY24. Concurrently, the company’s Indian Small and Medium Business (SMB) segment achieved a good growth rate exceeding 73 per cent YoY for the same period.
In the previous quarter, Q2 FY24, Oracle India had already set a strong precedent with a 50 per cent YoY growth in cloud consumption, pointing to a broadening adoption across various sectors within the region. Similarly, the SMB segment maintained a vigorous growth trajectory with a consistent increase of over 70 per cent YoY in cloud consumption during Q2.
In India, Oracle is experiencing growth across various sectors. Traditional strongholds such as BFSI, telecom and the public sector continue to expand. Additionally, industries like healthcare, manufacturing and education are increasingly adopting Oracle Cloud, presenting the company with multiple avenues for growth. This diversity in clientele has helped solidify Oracle’s presence and expand its influence within the Indian market.
In an April interview, Karan Batta, Senior Vice President at Oracle Cloud Infrastructure (OCI) told BW Businessworld, “From OCI’s standpoint, we will continue to deploy everything. We will continue to build the regions (we already have two) and continue to spend. We are potentially going to announce more. There is a lot of growth in the coming years out of India.”
Batta stressed upon the diverse opportunities across various sectors. He noted that while BFSI, healthcare and public sectors remain primary markets with a substantial customer base, non-financial enterprises, which have picked Microsoft Azure already, also present growth opportunities. To capitalise on this, Oracle has formed a strategic partnership with Azure to launch multiple new regions in India.
“In the next few months, we expect to announce several new regions as part of our collaboration with Azure. There’s a high demand for our database workloads on Azure and I foresee a significant uptick in this area within the next 12 to 18 months,” he added.
In FY23, Oracle’s India business saw robust growth with a focus on cloud services and emerging sectors. The company’s cloud services in the country experienced an overall 100 per cent consumption growth with renewal rates surpassing 74 per cent during the last fiscal year.
Globally, Oracle Cloud Infrastructure (OCI) has emerged as the leading contributor to the company’s accelerated revenue growth in the third quarter of FY2024, outpacing its competitors in the cloud sector. Excluding contributions from Cerner, Oracle’s global cloud revenue from Software as a Service (SaaS) and Infrastructure as a Service (IaaS) reached USD 4.4 billion, a 26 per cent increase. When including Cerner’s figures, the total cloud revenue climbed to USD 5.1 billion, up 24 per cent. Within this, IaaS revenue surged by 49 per cent to USD 1.8 billion, while SaaS revenue grew by 14 per cent to USD 3.3 billion. This was the first quarter where Oracle’s total cloud revenue surpassed its total license support revenue.
