Almost all technology companies are talking about the opportunities brought by artificial intelligence, and Oracle is no exception.
At the latest earnings conference call, Larry Ellison, founder and former CEO of Oracle, presented a future market opportunity.
Ellison believes that in the future, the application level of national and state governments on platforms such as Oracle Cloud Infrastructure OCI will be much higher than now, and he stated that this situation is unfolding in multiple ways.
"We have been talking about conducting business between companies all along... and now we are in negotiations with governments in some countries."
In a recent earnings conference call, Ellison went further on the basis of analyst forecasts, stating, "Every government, almost every government, wants to have a sovereign cloud and provide a dedicated area for their own government."
Improving government efficiency
Looking ahead, Ellison points out that a new version featuring cloud services and artificial intelligence solutions can improve government efficiency.
At present, Oracle, through its cooperation with Nvidia and Microsoft in generative artificial intelligence, has utilized cloud technology to help countries reduce many cumbersome programs. Erison gave an example that Albania is attempting to enter the European Union with the help of generative artificial intelligence, using new technologies to decipher and summarize its laws, and helping the country make necessary changes to comply with EU regulations.
Erison said, "Serbia spent eight years coordinating their laws in order to join the European Union; Albania also faces the same problem, but with generative artificial intelligence, we can read the entire corpus of Albanian law and reconcile their laws with the European Union within 18 months to two years."
In addition, the cooperation between Oracle cloud infrastructure service OCI and Starlink under Elon Musk is being carried out in Kenya and Rwanda. The transaction aims to provide Internet services to remote areas. The two are currently working together to draw maps of rural farms to see which crops are suitable for growing in which areas.
When it comes to this transaction, Ellison said, "These maps are assisted by artificial intelligence and can help them plan agricultural output, predict agricultural output, predict markets, and logistics for agricultural output, all of which are what the next generation of countries need to do."
Ellison also mentioned other "interesting new AI applications", such as food safety, Internet access in rural schools and hospitals, and automation of vaccination plans. Ellison pointed out that countries including Serbia are standardizing Oracle Cloud infrastructure and using generative artificial intelligence in processes such as healthcare automation.
"We live in a world where data and information are the gold of the future. If governments can access and process their data faster, why not? We want it to be as efficient as possible," said Dan Gardner, CEO of Code and Theory, a digital strategy firm
Associate Professor Tapan Parikh from Cornell University pointed out, "This technology has the potential to make bureaucratic institutions more efficient, or at least more transparent internally."
It is worth mentioning that the strong driving force of artificial intelligence on cloud infrastructure is well demonstrated in financial report data. In the latest third quarter report for fiscal year 2024, Oracle OCI's revenue increased by 52% year-on-year, with annualized revenue soaring to $6.7 billion. At the same time, cloud services and licensing support revenue became a major highlight, with a 12% increase in US dollars, reaching $10 billion.
So far this year, Oracle's stock price has risen by about 21%.