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Zoom taps Oracle for cloud deal, passing over Amazon, Microsoft

By Senior Editor Cedric Nettles

It is amazing how COVID-19 impacted how we do business and interact with one another. So as filmmakers and creatives we have to position ourselves to be able to operate into a pandemic weary society. Zoom appeared to be just another video conferencing software company…Now their branding name is synonymous with COVID-19 alongside the doors it opened up. My fellow scribes,actors, videographers, let’s prepare for this new Brave World and learn to move with the subtlety and practicality of a house cat and the aggressiveness and agility of a roaring lion. Zoom saw something years ago, and they are in for big wins. Perhaps as creatives we will see a new genre of creativity under platforms like this.

(CNBC) Zoom selected Oracle to provide its Cloud Infrastructure service on Tuesday, bypassing major cloud leaders Amazon Web Services, Alphabet’s Google Cloud Platform and Microsoft’s Azure Cloud. The terms of the deal were not disclosed.

“We recently experienced the most significant growth our business has ever seen, requiring massive increases in our service capacity. We explored multiple platforms, and Oracle Cloud Infrastructure was instrumental in helping us quickly scale our capacity and meet the needs of our new users,” Zoom CEO Eric Yuan said in a press release. “We chose Oracle Cloud Infrastructure because of its industry-leading security, outstanding performance and unmatched level of support.”

The Covid-19 pandemic has pushed many companies and schools to remote work, which allowed Zoom to emerge as a key player. The videoconferencing software company last week surpassed 300 million daily users, up from 200 million in just weeks. 

Oracle said in a release that Zoom chose its service for Oracle’s “advantages in performance, scalability, reliability and superior cloud security.” It’s a surprising move from Zoom, as it chose Oracle over its larger competitors. According to research firm Canalys, Amazon had the largest cloud market share at the end of 2019 with 32.4%, followed by Microsoft (17.6%) and Google (6%). 

Oracle stock was little changed following the announcement.

Zoom’s massive growth has also raised security questions around the service. After several security snafus, the company said it would focus on beefing up its security over the next few months instead of rolling out new features it had planned.

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