Oracle seeks strong growth in cloud business in India

Oracle seeks strong growth in cloud business in India
Technology major Oracle Corp. is witnessing strong growth in its cloud business in India driven by digital innovation in the banking, financial services and insurance (BFSI) sector, public sector initiatives, and small and medium business (SMBs).
“Public sector initiatives are happening around health, education, and in terms of creating the open network for digital commerce (ONDC), and SMBs…We are seeing very rapid growth in these areas," said Shailendra Kumar, senior vice president and regional managing director, Oracle India.
Earlier this year, the Indian government launched ONDC as a prospective alternative to dominant global e-commerce giants like and Walmart in its fast-growing e-commerce market. ONDC is expected to make e-commerce more inclusive and accessible for consumers who can potentially discover any seller, product or service by using any compatible application or platform, thus increasing freedom of choice for consumers.
A lion’s share of Oracle’s revenue from the cloud business comes from the BFSI sector. “We work with almost all banks in India, all insurance companies…we are working on transforming their businesses, their load management systems, their payment systems, internet banking, risk assessment and all of those things," Kumar said.
With Oracle Cloud, banks can reduce their reliance on data centre infrastructure and minimize costs by only paying for what they consume and maximise value by matching capacity with business demand. Oracle claims that by using its cloud, banks can reduce costs by up to 50% compared to other cloud providers.
Globally, Oracle’s cloud business grew 22% in constant currency to $2.9 billion in fiscal fourth quarter. This compares with its total quarterly revenue growth of 10% annually in constant currency to $11.8 billion. Total revenue in fiscal year 2022 rose 7% in constant currency to $42.4 billion. Oracle’s accounting year ends on 31 May.
“These consistent increases in our quarterly revenue growth rate typically have been driven by our market leading Fusion and NetSuite cloud applications. But this Q4, we also experienced a major increase in demand in our infrastructure cloud business—which grew 39% in constant currency," Safra Catz, chief executive officer, Oracle, said during the earnings.
Oracle is also betting big on the partner ecosystem to tap into the growing opportunities in the country. Currently, it has about 3,000 active partners in the Asia Pacific region and about 500 partners in India.
“One of the big topics is how you work towards developing a partner strategy where you absolutely go to market with partners first. Because we know that the value goes beyond just implementation and revenue expenditures…the partner conversation is now a lot broader and a lot deeper than it used to be," said Garrett Ilg, president, Japan and Asia Pacific, Oracle.
Under a strategic cloud interconnect partnership, Oracle and Microsoft are aiming to making it easy for their joint customers worldwide, including Japan, Korea and Singapore, to connect their Oracle Cloud Infrastructure (OCI) services such as Autonomous Database to their Microsoft Azure.