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Russian (RU) Sun, Sep 14, 2025, 12:01 PM 6 min read
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The cloud infrastructure space got a jump start thanks to the surge in demand for AI.
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Oracle Cloud Infrastructure (OCI) recently signed a flurry of deals that could take its business to the next level.
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The company is on a path to become one of the world's largest cloud providers.
The advent of modern cloud computing is largely attributed to Amazon, which pioneered cloud infrastructure services with the introduction of Amazon Web Services (AWS) in 2002. The industry has evolved over time, but the basics remain the same: Providers offer on-demand, scalable computing, software, data storage, and networking capabilities to any business with an internet connection.
After a period of slower growth, the cloud infrastructure space got a jump start thanks to recent developments in the field of artificial intelligence (AI). However, the large language models that underpin the technology require a great deal of computational horsepower, which typically isn't available outside a data center. As a result, the demand for cloud infrastructure services has skyrocketed in recent years, and it's expected only to grow from here.
Recent developments suggest there could be a big shakeup coming to the cloud infrastructure space, led by technology stalwart Oracle (NYSE: ORCL).
While the company is primarily known for its flagship Oracle Database, it offers customers a growing suite of enterprise software, integrated cloud applications, and cloud infrastructure services.
Oracle Cloud Infrastructure (OCI) has long trailed the Big Three cloud providers. To close out the calendar second quarter, AWS, Microsoft Azure, and Alphabet's Google Cloud controlled 30%, 20%, and 13% of the market, respectively, according to data compiled by Statista. Oracle ran a distant fifth with 3% of the market.
Yet, recent developments suggest a paradigm shift in the status quo. When Oracle released the results of its fiscal 2026 first quarter (ended Aug. 31), the headline numbers were largely business as usual. Total revenue grew 11% year over year to $14.9 billion, while its adjusted earnings per share (EPS) of $1.47 grew 6%.
However, investors were taken aback by the magnitude of Oracle's backlog, as its remaining performance obligation (RPO) -- or contractual obligations not yet included in revenue -- surged 359% year over year to $455 billion. Perhaps more impressive is the $317 billion in contracts signed during the first quarter alone.
Oracle's position as a trusted partner to enterprise made it "the go-to place for AI workloads," according to CEO Safra Catz. If that wasn't enough, she went on to say, "We expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars."
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