Oracle Announces Enhancement Of Cloud Security Offerings
Zacks Investment Research | Jun 05, 2017 11:11PM ET
Oracle Corp. (NYSE:ORCL) recently announced that it is adding a number of features to its Identity-based Security Operation Center (SOC) cloud services, which has gained significant traction in recent times.
The company stated that the new additions will enhance the cloud service’s machine learning, artificial intelligence (AI) and contextual awareness capabilities.
The new features include Adaptive Access capabilities in Oracle Identity Cloud Service intended for dynamic application access controls, advancing market-leading risk monitoring leveraging machine learning engines; and the expansion of Oracle CASB Cloud Service to help support Oracle SaaS solutions with automated threat detection.
We believe that the new features will improve the products' ability to handle growing security threats. The product has already been selected by more than 1 million users within a short span of six months. The enhanced features will help Oracle to attract new customers, which will drive top-line growth going ahead.
Improving top-line will eventually boost Oracle’s share price. We note that the company has outperformed the S&P 500 on a year-to-date basis. While the index gained 10.4%, the stock returned 19.7% over the same time frame.
Importance of Cloud Security
Per ReportsnReports, the cloud security market will witness compound annual growth rate (CAGR) of 25.5% to reach $12.73 billion by 2022 from $4.09 billion in 2017.
Notably, at a time when the world just witnessed the impact of ransom ware – WannaCry, cloud security has gained more limelight. Increased demand for cloud computing has triggered a rise in adoption of security solutions. Spending in the market has also increased, indicating strong growth prospects.
Oracle’s Prospects in Cloud
Per Gartner, the worldwide public cloud services market is projected to grow 18% in 2017 to $246.8 billion, up from $209.2 billion in 2016. This presents significant growth opportunity for Oracle, as it is shifting its on-premise licensing to cloud-based subscription business model.
Oracle Corporation Revenue (TTM)
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