Oracle (ORCL) Cloud Services Expand in Mexico With TELMEX-Triara
Oracle ORCL has demonstrated its commitment to delivering innovative cloud infrastructure services across Mexico, by becoming the first hyperscaler to open two cloud regions in the country. This expansion is part of ORCL's distributed cloud strategy.
TELMEX-Triara is the host partner for the new Oracle Cloud Monterrey Region. Through this partnership, TELMEX-Triara becomes one of the first telecommunications operators in Mexico to offer Oracle Cloud Infrastructure (“OCI”) services to organizations.
The new region will offer Oracle Cloud's full capabilities, including more than 100 OCI services and cloud applications. This includes services like Oracle Autonomous Database, MySQL HeatWave Database Service, Oracle Container Engine for Kubernetes, Oracle Cloud VMware Solution and AI infrastructure.
The partnership between ORCL and TELMEX-Triara aims to help organizations strengthen business continuity while addressing data residency and data sovereignty requirements in Mexico. This involves providing redundancy and disaster recovery capabilities across the two cloud regions in Mexico.
The announcement has received positive responses from various customers and analysts who recognize the value of Oracle's cloud region in Mexico for digital transformation, business continuity and innovation.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
Oracle Expands Presence in Cloud Infrastructure Market
The expansion of OCI in Mexico is part of a broader global strategy to provide cloud services to customers and organizations in multiple regions and it aligns with the company's efforts to facilitate digital transformation and innovation.
Oracle's cloud services are available in 46 commercial and government cloud regions in 23 countries, providing a broad and consistent set of cloud services for its global customer base. The company's distributed cloud offerings cater to various requirements, including data residency and low latency.
OCI's extensive network of more than 85 global and regional OCI FastConnect partners offers dedicated connectivity to Oracle Cloud Regions and OCI services. This allows for higher bandwidth, lower latency and more consistent performance compared with public Internet connections.
Oracle is expected to benefit from rising worldwide cloud infrastructure services spending, which gained 16% sequentially to $72.4 billion in second-quarter 2023. In second-quarter 2023, the top three vendors, Amazon’s AMZN division, Amazon Web Services (“AWS"), Microsoft’s MSFT Azure and Alphabet’s GOOGL Google Cloud, collectively grew 20% — down from 22% in the first quarter — and accounted for 65% of total spending. While AWS and Microsoft both saw a deceleration in growth, Google Cloud’s growth rate remained stable compared with the previous quarter at 31%.
Shares of Oracle have gained 28% year to date compared with the Zacks Computer and Technology sector’s increase of 30.8%.
This Zacks Rank #3 (Hold) company noted that Gen 2 Cloud is delivering better performance at a lower cost due to some fundamental advantages compared with other hyperscalers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for ORCL’s fiscal 2024 cloud services and license revenues is pegged at $44.65 billion, indicating year-over-year growth of 26.48%. The Zacks Consensus Estimate for earnings is pegged at a profit of $5.53 per share, indicating year-over-year growth of 8.01%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
