Oracle, the world’s most extensive database management company, has decided to increase its capital expenditures in the current quarter of the year to reach the level of the Big Three: Amazon, Google, and Microsoft. Oracle is known for selling database software and technology, cloud engineered systems, and program software.
- The cloud infrastructure of Amazon is way ahead of others. It is known for producing more revenue from cloud Infrastructure services than any other company in the world. Amazon is followed by Google’s parent Alphabet and Microsoft. While Alphabet’s cloud supply spending is a little higher than Microsoft, other companies like IBM and Oracle are far behind.
- Since IBM and Oracle follow revealing only their total capital expenditures, it creates a sense of the scope of investment they are making to deliver these fast-growing services. In the last four years, even consolidated capital investments of IBM and Oracle could not compete with one-fourth of Amazon.
- Oracle CEO Safra Catz has said the company plans a 131% increase in periodic capital expenditures, compared with a 5% increase in the previous quarter. “We continue to land many new customers, including ISVs and we have some very large users coming online shortly that will require a significant amount of capacity,” he said.
- Forecasting $1billion in the capital is a big deal for Oracle, but its achievement is not that grand in comparison with other companies in the market. Charles Fitzgerald, former Microsoft General manager, said, “They are $100 billion behind. Adding $1 billion in incremental CAPEX—that’s 1% of the gap they have to fill”.
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