Oracle Wins Cloud Computing Deal With Zoom as Video Calls Surge

Zoom Video Communications said on Tuesday it has started using Oracle’s cloud computing Support to help handle the surge in online video call volumes brought on by the novel coronavirus pandemic.

As corporations and schools shift to remote work and countless people subject to stay-at-home orders seek ways to remain connected, Zoom has seen daily assembly participants rocket from 10 million in December to 300 million. But it has also experienced a backlash as the higher use of exposed solitude and security flaws.

Zoom set a 90-day plan to repair the security problems, but in the meantime, the thirty-fold jump in traffic has required greater computing power.

The deal is a big win for Oracle, which wishes to catch up with rivals like Amazon and Microsoft who have higher market share, also is selling a new generation of cloud technologies after its first generation attempts failed to gain traction.

Zoom and Oracle didn’t disclose the size of this agreement but said traffic for millions of meeting participants has been handled with Oracle’s cloud service and roughly 7 million gigabytes of Zoom information daily is flowing through Oracle servers.

“It is exciting to be able to return to a stage and scale very rapidly,” Zoom’s Chief Technology Officer Brendan Ittelson told Reuters in an interview.

Zoom’s service ran on a mix of its data center gear and cloud computing services from Amazon Web Services and Microsoft’s Azure, but it started working with Oracle about six months ago.

Jean Atelsek, an analyst with 451 Research, stated if Zoom’s use of Oracle proves successful, it might give Oracle a high-profile client to show that its new technology is competitive with bigger rivals.

“What’s notable about this deal is only the pace with which it occurred,” Atelesk explained.

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