Could Oracle Solve Zoom Video Communications’ Biggest Problem?
Zoom Video Communications (NASDAQ: ZM) recently announced it would tap Oracle's (NYSE: ORCL) cloud infrastructure platform to support its video conferencing service. Zoom's service previously ran on its own data centers, Amazon (NASDAQ: AMZN) Web Services (AWS), and Microsoft's (NASDAQ: MSFT) Azure. Zoom will continue to use AWS and Azure after adding Oracle to the mix.
Zoom's daily meeting participants surged from 10 million to 300 million in the first four months of 2020 as the pandemic forced more people to stay at home, so it wasn't surprising for Zoom scale up its infrastructure. However, it was surprising for Zoom to choose Oracle, a distant underdog in the cloud platform market, instead of simply renting more computing power from Amazon and Microsoft. Let's see how this deal could benefit both companies.
Image source: Zoom.
Source Fool.com
