On Tuesday (April 28), Oracle Corporation (NYSE: ORCL) announced that Zoom Video Communications, Inc. (NASDAQ: ZM) had decided to deploy Oracle Cloud Infrastructure to support its rapidly growing business.
According to Oracle’s press release, Eric S. Yuan, the CEO of Zoom had this to say about the deal with Oracle:
“We recently experienced the most significant growth our business has ever seen, requiring massive increases in our service capacity.
“We explored multiple platforms, and Oracle Cloud Infrastructure was instrumental in helping us quickly scale our capacity and meet the needs of our new users.
“We chose Oracle Cloud Infrastructure because of its industry-leading security, outstanding performance, and unmatched level of support.”
One of the few beneficiaries of the COVID-19 pandemic has been video conferencing platform Zoom, which last week mananged to achieve the milestone of 300 million daily users (versus 200 million in March and just 10 million last December).
Earlier this month, Larry Ellision, the founder and CEO of Oracle, called Zoom “an essential service” since lockdowns around the world have forced many people and organizations to massively increase their use of video chat/conferencing apps, and Zoom’s easy of use has made it the clear winner so far.
According to CNBC, the Oracle CEO said in a video posted on April 13:
“We’re looking forward to the economy being reopened, we’re looking forward to going back to work, but the way we work will never again be the same.
“We will now meet not just face-to-face, we’ll meet sometimes face-to-face and sometimes digitally via Zoom.”
Oracle says that Zoom decided to use Oracle Cloud Infrastructure since this has “advantages in performance, scalability, reliability and superior cloud security.”
Furthermore, according to Oracle, Zoom has already deployed Oracle’s software, which is currently able to support “millions of simultaneous meeting participants.”
Oracle CEO Safra Catz said:
“Video communications has become an essential part of our professional and personal lives, and Zoom has led this industry’s innovation.
“We are proud to work with Zoom, as both their cloud infrastructure provider and as a customer, while they grow and continue to connect businesses, people and governments around the world.”
At the time of writing (around 16:45 UTC on April 8), according to data from Google Finance, here is how the stocks of Zoom, Oracle, Amazon, and Microsoft are doing:
- Zoom: $159.13 (-3.32%)
- Oracle: $53.43 (+0.11%)
- Amazon: $2,315.01 (-2.57%)
- Microsoft: $171.08 (-1.71%)
It is worth noting that, currently, the Dow is at 24146.56 (+0.05%), the S&P 500 is at 2,873.01 (-0.19%), and Nasdaq is at 8653.25 (-0.88%).