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Hello,
Thanks for your interest in our latest research. You can view a summary of our latest report below.
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Oracle announced the launch of its 33rd cloud region this week, in Singapore. It plans to expand its footprint to 44 regions by year-end 2022. Oracle has prioritized a rapid expansion across the globe, relying on third-party colocation providers for most of its data centers, and building a single availability zone per region, at least to start. The company is in a race to catch up with the big 3 (Amazon, Google, and Microsoft), and recognizes that many of its customers are eager to migrate to the cloud, and they have options.
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Oracle’s cloud rush is apparent in its capex stats. The company’s capex has grown quickly in recent quarters, reaching over $1B in 3Q21; annualized capital intensity through 3Q21 was 6.8%, the company’s highest in at least the last decade. Still, this is far below big 3, which all spend well over 10% of revenues on capex. Oracle’s capex is not likely to decline anytime soon, given its global plans; it expects capex to double for the fiscal year ended May 2022. Oracle’s push also has a secondary effect on the capex plans of its colocation partners. Companies like Digital Realty and Equinix, both of which provide space to Oracle in multiple markets, are...
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Best regards, Matt Walker Chief Analyst
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