LAS VEGAS - Uber Technologies Inc . (NYSE:UBER) has tapped Oracle Cloud Infrastructure (OCI) to support its expansive on-demand mobility services, which facilitate over one million trips each hour. The collaboration, highlighted at Oracle CloudWorld on September 11, 2024, underscores Uber's commitment to scaling operations and accelerating innovation through cloud-based solutions.
In the pursuit of growth and market expansion, Uber began transitioning its core infrastructure to OCI in 2023. The migration includes thousands of microservices, data storage platforms, and artificial intelligence (AI) models. Kamran Zargahi, Uber's senior director for Tech Strategy and Cloud Engineering, emphasized the need for a flexible cloud infrastructure to ensure superior customer experiences. The partnership with Oracle enables Uber to innovate swiftly while managing infrastructure costs effectively.
Uber's application tier and AI infrastructure have undergone significant modernization. The ride-hailing giant has moved a substantial portion of its operational big data and streaming stack to OCI, harnessing OCI's compute capabilities powered by AMD (NASDAQ:AMD) and Ampere Arm technologies for its trip-serving requests and stateless workloads. The shift aims to bolster scale, automation, and efficiency.
Additionally, Uber's AI services, responsible for powering the inferencing of numerous AI models, are supported by OCI's AI infrastructure. This enhancement is designed to optimize cost, throughput, and latency for Uber's AI workloads. A segment of Uber's big data Hadoop Distributed File System (HDFS) environment, touted as one of the industry's largest, has also been re-platformed to OCI Object Storage, granting Uber the ability to scale storage with high durability.
Karan Batta, Oracle's senior vice president for OCI, lauded Uber as a forward-thinking entity that leverages multicloud partnerships to deliver valuable customer services. Oracle anticipates the continued evolution of its cloud partnership with Uber as the company progresses in its rapid growth trajectory.
This strategic move by Uber, based on a press release statement, showcases the company's efforts to refine its technological infrastructure and maintain its position as a leader in the on-demand transportation sector.
In other recent news, Oracle Corporation (NYSE:ORCL) has made significant strides in integrating artificial intelligence (AI) into its cloud services and products. The company's total revenue increased by 8% to $13.3 billion, with cloud product revenue seeing a significant rise of 21% to $5.6 billion, surpassing analysts' expectations. Oracle's AI-driven innovations, such as the Oracle Cloud Infrastructure (OCI) Generative AI (GenAI) Agents service and a new AI-centric application development infrastructure, termed generative development (GenDev), were unveiled at the recent CloudWorld event.
Mizuho Securities reiterated its Outperform rating on Oracle, maintaining a price target of $185.00, indicating confidence in Oracle's direction and potential for growth. Analysts from Stifel and KeyBanc Capital Markets have projected further growth for Oracle, attributing this to the successful integration of AI into its cloud services and a rise in AI infrastructure bookings.
KeyBanc Capital Markets also maintained its Overweight rating on Oracle and increased the price target to $175 from $165. This followed Oracle's robust performance in Remaining Performance Obligations (RPO). The firm highlighted that the total RPO grew by 52.5% year-over-year, surpassing the consensus estimate by nearly 10%.
Oracle has also been actively forming partnerships with other cloud service providers, including a recent agreement with Amazon (NASDAQ:AMZN) Web Services. Analysts from Bernstein have expressed positive expectations, stating that support from major cloud providers will likely result in a continued increase in cloud revenue. These are some of the recent developments at Oracle Corporation.
InvestingPro Insights
As Uber Technologies Inc. enhances its cloud infrastructure by partnering with Oracle Cloud Infrastructure (OCI), it's worth noting that Oracle Corporation (NYSE:ORCL) is demonstrating strong financial performance and market presence. According to real-time data from InvestingPro, Oracle has a significant market capitalization of $429.61 billion, reflecting the company's substantial footprint in the technology sector.
InvestingPro Tips highlight Oracle's consistency in shareholder value with a history of raising its dividend for 11 consecutive years. This kind of financial discipline is often a signal of a company's stability and commitment to returning value to its shareholders. Moreover, Oracle's prominence as a player in the Software industry supports its strategic collaborations with companies like Uber, which rely on robust and scalable cloud services to meet growing demand.
Key financial metrics provide insight into Oracle's valuation and profitability. The company's P/E Ratio stands at 39.02, which is high and indicates investor confidence in Oracle's future earnings potential. Additionally, Oracle's revenue for the last twelve months as of Q1 2023 reached $53.81 billion, with a growth of 5.6%, showcasing the company's ability to increase its sales in a competitive market.
For readers interested in deeper analysis, there are 21 additional InvestingPro Tips available that offer a comprehensive look at Oracle's financial health, including its performance trends and valuation multiples. These insights are accessible through Oracle's InvestingPro page at https://www.investing.com/pro/ORCL.
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