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Zoom Hires Oracle, Not Amazon or Microsoft, For Cloud Deal

By Donna Fuscaldo – Updated Apr 28, 2020 at 4:46PM

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Zoom said it tapped Oracle for its cloud needs because it stood out in its ability to meet all the demand the company has experienced.

Zoom Video Communications (ZM 4.87%), the video conferencing platform made popular amid the COVID-19 pandemic, has chosen Oracle's (ORCL 4.14%) Cloud Infrastructure to support its core video product, although it will continue working with Amazon (AMZN 4.50%) and Microsoft (MSFT 3.38%) on some cloud projects as well.

In a press release, Zoom CEO Eric Yuan said that the company had explored multiple platforms before choosing Oracle Cloud Infrastructure.  

A man on a Zoom video call at his desk, with a glass of wine nearby.

IMAGE SOURCE: GETTY IMAGES.

"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," said Yuan. "We chose Oracle Cloud Infrastructure because of its industry-leading security, outstanding performance, and unmatched level of support."  

To say Zoom is experiencing red-hot growth would be an understatement. Since the pandemic forced millions of people to shelter in place and work from home, Zoom has become an important tool to remain connected. At the end of December, it had 10 million peak daily users. That has surged to over 300 million as of last week. Zoom said that within hours of deployment Oracle's cloud was able to support hundreds of thousands of Zoom meeting participants at the same time. Since that it has increased, enabling millions of simultaneous meeting participants. Going forward, Zoom will be depending on Oracle Cloud Infrastructure to ensure those meeting participants receive a quality experience.  

Editors' Note: This article has been updated to clarify that Zoom is still working with Amazon Web Services and Microsoft on some cloud projects. 

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Microsoft, and Zoom Video Communications and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short May 2020 $120 calls on Zoom Video Communications, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Microsoft Corporation Stock Quote
Microsoft Corporation
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Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
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Oracle Corporation Stock Quote
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Zoom Video Communications Stock Quote
Zoom Video Communications
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