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.”
This move deals a heavy blow to both Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT), the two companies that had until now been providing cloud services to Zoom.
One of the few beneficiaries of the COVID-19 pandemic has been video conferencing software platform, which has seen last week mananged to achieve 300 million daily users (up from around 200 million just a few weeks ago).
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.
Oracle says that 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.”
