Oracle’s (ORCL – Free Report) cloud services are being leveraged by K-12 school systems across the United States for improving management of students and faculty amid return to school as well as the adoption of hybrid learning environment.
Oracle Cloud will aid these school systems to restructure finance, Human Resource (HR) and data-management processes to enhance resource optimization and operational efficiency, added the tech giant.
K-12 school systems are utilizing various cloud-based solutions like Oracle Fusion Cloud Human Capital Management (HCM), Oracle Fusion Cloud Enterprise Resource Planning (ERP) Oracle Analytics Cloud, Oracle Fusion Analytics Warehouse and Oracle Fusion Cloud Enterprise Performance Management (EPM).
Some of the notable K-12 school systems implementing Oracle Cloud are Allegheny Intermediate Unit, Wichita Public Schools, Montgomery County Intermediate Unit, Cherry Creek School District and Bucks County Intermediate Unit.
Oracle Striving to Boost Presence in the Cloud Space
Despite its late entry, Oracle has been endeavouring to grab a larger share of the prospective cloud market, which is dominated by the likes of Amazon’s (AMZN – Free Report) Amazon Web Services and Microsoft’s (MSFT – Free Report) Azure Cloud.
The cloud computing market is being driven by accelerated workload migration to cloud owing to the remote work and flexible work model innovation. Migration to cloud offers benefits like improved scalability, easy deployment of applications and faster disaster-recovery management.
Spurt in e-commerce and higher demand for cloud-native applications like streaming services is also driving the market. Adoption of pioneering technologies like machine learning, Artificial Intelligence (AI), Big Data is another catalyst.
According to Fortune Business Insights report, the global cloud computing market is expected to witness a CAGR of 17.9% between 2021 and 2028 and reach $791.48 billion. Cloud computing market in education vertical is projected to witness a CAGR of 22.4% between 2020 and 2027, per a report available on Research And Markets.
Oracle’s software-as-a-service (SaaS), infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) products are likely to grow strongly over the next few years as enterprises rapidly transition to cloud environment.
In the last reported quarter, management noted that the company’s IaaS and SaaS business contributed 25% to total quarterly revenues with an annual run rate of $10 billion.
Increased availability of Oracle cloud regions globally is consolidating its competitive position in the cloud computing market. The company currently has 30 cloud regions in the world.
However, higher spend on product enhancements, especially toward cloud platform, amid increasing competition in the cloud domain from established players Amazon, Microsoft and Alphabet’s (GOOGL – Free Report) Google Cloud as well as other medium- and small-sized cloud service providers is likely to limit margin expansion in the near term.
Oracle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.