Oracle ORCL and Palantir PLTR have forged a formidable partnership, combining secure cloud and artificial intelligence (AI) solutions to empower businesses and governments worldwide. This synergistic alliance merges ORCL’s robust distributed cloud and AI infrastructure with PLTR’s cutting-edge AI platforms, allowing organizations to harness their data, boost efficiency, satisfy sovereignty requirements, and outmaneuver adversaries.
Palantir will migrate its Foundry workloads to Oracle Cloud Infrastructure (“OCI”), facilitating the availability of its Gotham and AI platforms across ORCL’s distributed cloud environment.
With Oracle’s expansive cloud coverage and secure AI capabilities, a wider array of organizations can now tap into Palantir’s platforms for enhanced data integration and strategic decision-making.
OCI offers a comprehensive suite of over 100 services and applications, including state-of-the-art generative AI, accessible across various deployment models. Consistent pricing and services simplify planning and management for organizations operating across commercial, sovereign, and government landscapes.
Rooted in Oracle’s rich legacy of security and intelligence expertise, this partnership targets delivering potent capabilities to the defense sector. By distributing and supporting cloud and AI services across government and commercial sectors, the collaboration ensures organizations have access to top-tier technologies while meeting rigorous security and sovereignty standards.
Oracle’s AI Advancements Spur Growth in Cloud Services and Revenues
Oracle, along with its subsidiary NetSuite, has been spearheading AI advancements. Recent breakthroughs include solutions like NetSuite’s Analytics Warehouse Multi-Instance Connector and Text Enhance, alongside Oracle Fusion Data Intelligence.
NetSuite’s Analytics Warehouse Multi-Instance Connector aids organizations with multiple businesses by consolidating data from various NetSuite instances into a unified Analytics Warehouse environment. This consolidation streamlines data access, reduces costs, and refines decision-making processes.
Moreover, Oracle’s NetSuite is expanding its generative AI functionalities across its service portfolio. NetSuite’s Text Enhance empowers users to leverage company data in crafting personalized content, enhancing productivity, reducing errors, ensuring consistency, and expediting business operations.
Oracle is also rolling out new AI features in Oracle Fusion Data Intelligence, leveraging OCI services like Oracle Autonomous Database and OCI Data Lake to offer data-driven insights married with actionable intelligence. These AI capabilities are designed to enhance decision-making and drive improved business outcomes.
These strides are poised to bolster the company’s cloud services and license revenues in the forthcoming quarters.
The Zacks Consensus Estimate for ORCL’s fiscal 2024 cloud services and license revenues stands at $44.87 billion, indicating a robust 26.7% year-over-year growth. The 2024 earnings estimate sits at $5.58 per share, pointing to an 8.98% year-over-year growth.
Year-to-date, shares of this Zacks Rank #3 (Hold) company have surged by 17.8%, surpassing the 14% growth of the Zacks Computer and Technology sector. This outperformance stems from Oracle’s strategic enhancements like AI integration, heightening user experience.
Competition and Collaboration in the AI Cloud Space
Oracle faces stiff competition from industry behemoths such as Salesforce CRM and Microsoft MSFT in the AI cloud domain.
Salesforce Sales Cloud simplifies business processes through automation, audience discovery, and enhanced communication. Its specialized government features enable faster, personalized citizen services. CRM recently introduced Einstein Studio, allowing easy customization of the Einstein Copilot AI assistant across various applications.
Microsoft Cloud equips businesses with a diverse array of tools and solutions for navigating contemporary business landscapes. Microsoft and ORCL have collaborated to meet the rising demand for Oracle Database on Azure globally. This collaboration has extended the availability of Oracle Database to five more regions, making it accessible in a total of 15 regions worldwide.
Oracle’s unwavering commitment to innovation and AI investments positions it strongly against competitors in the AI cloud arena. The partnership with Microsoft also fosters a healthy competitive environment, propelling advancements and customer-centric solutions.
