In a groundbreaking shift, Oracle has achieved a pivotal milestone as revenue from its cloud services has eclipsed that of its traditional software licensing for the first time, marking a significant step in the company’s decade-long transition to a cloud-computing powerhouse. Oracle’s CEO, Safra Catz, proudly emphasized this achievement during a conference call where the company reported stellar fiscal third-quarter earnings, triggering a remarkable 14% surge in Oracle shares during after-hours trading, closing at $130.50.
Despite a 24% jump in total cloud revenue and continued strong demand, Catz provided insights into the company’s strategic future, detailing plans to nearly double capital spending to $10 billion in fiscal 2025 to accommodate the construction of additional data centers and meet the burgeoning demand, especially in the realm of generative-AI infrastructure.