Oracle Cloud AI data centers are the backbone of its $500B dream.
Oracle cloud AI journey on the cloud, dreams of $500 Billion and the power of AI
There has been a new earthquake in the world of technology. But the shares of Oracle, the giant company of the software world, saw a tremendous jump. Also, this jump is not a small news. And this is a direct result of the increasing expectations of investors about the future of the company. Market experts believe that Oracle’s cloud business can touch the figure of $500 billion i.e. about Rs 41 lakh crore in the coming time. So that this is a surprising number. The question arises that why did this possibility arise suddenly? The biggest reason behind this is Artificial Intelligence i.e. AI. Let us understand in easy and simple language how this journey of Oracle started and what it means in the future.
Cloud computing a simple understanding
To understand this whole news deeply, it is important to first know the basics of cloud computing. And in the olden days, companies had to install large servers in their offices to keep their data and run software. Also, taking care of these servers used to be a very expensive and difficult task. Also, keeping them cool, secure and constantly updating them was a big challenge.
Cloud computing solved this problem. And now companies do not need to buy servers themselves. But they can rent computing power from companies like Amazon Web Services (AWS), Microsoft Azure, or Google Cloud. It is just like you get electricity connection in your house. You do not buy a generator yourself but take electricity from the electricity company and pay the bill for the amount you use. So that Oracle is now emerging as a strong and powerful player in this cloud computing race.
Oracle’s Cloud Business came late but made a splash
Oracle was considered a latecomer in the cloud computing race. Companies like AWS and Microsoft had captured this market long ago. Also, Oracle did not give up. The company took advantage of its strong position, it had a huge and loyal customer group of the world’s largest companies and who used its database and enterprise software. Also, Oracle attracted these customers towards its new cloud platform Oracle Cloud Infrastructure. They explained to the customers that it can give them better security, faster speed and lower cost cloud solution than others. Gradually, many big companies started adopting Oracle’s cloud.
AI is proving to be a game-changer on Oracle cloud AI
Now let’s talk about the most interesting part which is Artificial Intelligence i.e. AI. AI is dominating the whole world. And tools like ChatGPT have made even common people realize the power of AI. But, training and running these powerful AI models is a very difficult task. This requires state-of-the-art and powerful computing infrastructure. Also, this is where Oracle got a big advantage. Companies and startups making AI have to process very large amounts of data. And they need high-performance computing chips, such as Nvidia’s GPU. There is a huge shortage of these chips all over the world.
Also, Oracle has a large stock of these valuable chips. Because of this, it is able to provide faster, efficient and reliable service to AI companies as compared to other cloud providers. But big AI companies like Anthropic have chosen Oracle’s cloud as compared to OpenAI. This simply means that the industry leaders are expressing confidence in Oracle’s platform.
Excitement among investors, tremendous jump in shares
When such a big and exciting prediction is made about the future of a company. So it is natural for investors to get excited. Investors buy the company’s shares after seeing the possibility of future profits. Also, the tremendous increase in the price of Oracle’s shares is a direct result of this hope and belief. Also, investors now feel that Oracle will prove to be a hidden gem in the race of AI. But they believe that when the company’s profits increase, shareholders will also benefit a lot. That is why, people are buying Oracle shares right now so that they can get more returns in future. Also as AI expands, the demand for Oracle will also skyrocket. Which is why analysts have predicted a historic possibility of $500 billion.
Challenges and way forward Oracle cloud AI
But Oracle’s path is not easy at all. The company is facing giants like AWS and Microsoft. These companies are also investing heavily in the field of AI and are constantly improving their services. At the same time, Oracle will have to maintain its place in this tough competition. Also, for this, Oracle will have to keep innovating continuously. It will have to provide even better service to customers and keep the prices of its platform competitive, but it will have to rapidly expand the network of its data centers around the world so that customers in every corner of the world can get faster and better service.
Also, Oracle’s biggest strength is its ‘Autonomous Database’. It is an automatic database that takes care of itself. Maintains security. And updates itself when needed. This saves companies both valuable time and money. There is a saving of Rs. 1000 crores. This is the reason why OCI was able to quickly make a different identity in the market.
Conclusion: The beginning of a new era of Oracle cloud AI
This story of Oracle proves that no one should ever be underestimated in the world of technology. But a company that was in the business of traditional software can catch the wave of Artificial Intelligence and shine once again. But the figure of $500 billion is a target, a possibility that points towards a bright future for Oracle. AI is no longer just a trend, it is changing the way we live, work and do business. Companies like Oracle are strengthening the foundation of this new era. The next decade of technology will revolve around cloud and AI and Oracle seems to be playing an important role in it.
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