Oracle

Oracle (NYSE:ORCL) is a multinational computer technology corporation that offers a complete and fully integrated suite of cloud applications and cloud platform services. Oracle is one of the world’s largest providers of enterprise-grade databases, middleware, and application software, with over 400,000 customers and operations in 175 countries. In FY2022, the company generated USD 42.4 billion in annual revenues. Oracle is also among a select group of Tier 1 ERP software providers including SAP and Microsoft Dynamics. In 2022, Oracle ranked 91 on the Fortune 500 and received a gold medal in the 2022 EcoVadis CSR Assessment, placing the company in the top 5% of responding companies for supplier sustainability.

Oracle operates across three broad reporting segments: cloud and license, hardware, and services. The cloud and license segment is Oracle’s largest revenue contributor, accounting for ~85% (FY ending May 2022) of annual revenues. Within this segment, cloud services and license support accounted for the largest share (nearly 84% in 2022), with Oracle’s infrastructure ecosystem capturing the bulk of revenues (58%) relative to the applications ecosystem (42%).  

In 2022, the Americas accounted for ~56% of Oracle’s total revenues, followed by Europe, the Middle East, and Africa (~28%) as well as the Asia-Pacific region (~16%). Moving forward, the company is focused on an Oracle Cloud strategy that emphasizes Oracle Cloud Software-as-a-Service and Oracle Cloud Infrastructure (OCI) as key drivers for the expansion of its cloud and license business. The company anticipates a substantial migration of its customer base from on-premise applications and infrastructure products and services to the Oracle Cloud. It is also looking to invest in ramping its data center capacity, particularly by adding extra data centers in new geographic locations and long-term operating lease commitments with third-party data center providers.

In June 2022, Oracle acquired electronic health records company Cerner in a ~USD 28.3-billion deal aimed at anchoring the company’s cloud expansion in the hospital and health system market. The acquisition of Cerner, ranked second in the electronic health record business, is Oracle’s largest deal ever . In August 2022, the company embarked on a series of layoffs (starting in the US and potentially expanding beyond) to reduce costs by a substantial target of USD 1 billion. Oracle’s marketing and customer experience divisions were the hardest hit, with marketing headcounts slashed by 30%–50% . However, subsequent layoffs also impacted its North America Cloud Infrastructure & Technology unit.