Cloud computing

Software licensing is their second biggest business and support kind of gets attached to that.

They've got a hardware business by comparison is small and their services business also uh smaller here but their cloud applications grew 10 percent to 4.2 billion dollars um within that fusion did well 14 industry apps like oracle health up 12 percent uh net suite up just six percent but whatever um because that cloud growth is just accelerating 62 year-over-year growth in their overall cloud business breaking away from all the other growth rates that they've seen that are so positive with the exception of software support um but what we see is Hardware picking up, services doing fine, but that cloud business, the biggest business they've got getting bigger and bigger, specifically within that cloud infrastructure.

The building of data centers, OCI, Oracle Cloud Infrastructure, up 112% on a year-over-year basis to $7.4 billion, nine quarters in a row of the growth rate accelerating here.

Now, they added a lot of data center capacity.

They measure these things in terms of how much power it uses, and it was 850 megawatts of power added just in this quarter.

they're not just signing up to use Oracle software, more Oracle Health, right? The business used to be called Cerner, that Oracle acquired and rewrote all the software using AI and now is offering as Oracle Health.

They signed a big deal to do Oracle Health.

also uh oracle fusion cloud uh healthcare management systems oracle erp these are all software products right um but also they're using oracle cloud infrastructure they're hosting information on the oracle cloud they're using those data centers that oracle is building out it's not just ai companies and of course they're getting support from oracle's customer success services so Doing all this, they say they're going to get better automation, strengthen governance and reporting, reduce their manual work, let doctors talk to patients instead of spending all their time charting and things.

Their revenue grew 30%, that beat expectations quite nicely.

More importantly, Oracle Cloud infrastructure revenue surged 121% to $7.4 billion.

Its backlog rose to an extraordinary $664 billion as well, and it signaled more than $30 billion of new AI Cloud contract.

contracts during the quarter.

So very solid from Oracle there.

I think with the LLMs and everything surrounding the tool Infernet, we should be thinking on an ecosystem of our, you know, main providers and industries.

Like, for example, Ankara's case that we saw, like how you can, you know, deploy your Kubernetes infrastructure on sovereign cloud.

You know, like that's a case of ecosystem.

You know, you have access to the main European sovereign clouds like Hetzner, OVH, us, like UpCloud, and you can do cool stuff there.

And I think Europe is being, you know, on the vanguard of that.

We should be proud and take it further.

Today is Friday, September 11th, 2026.

Oracle just put twenty-eight point five billion dollars into the cloud in one quarter.

Cloud infrastructure revenue rose one hundred twenty-one percent.

Oracle added eight hundred fifty megawatts.

Oil broke one hundred eight dollars, and the 10-year treasury hit four point nine five percent.

Instead of Oracle financing 100% of every GPU purchase from its own balance sheet and waiting years to recover the investment through cloud revenue, part of the hardware requirement is financed directly by the customer that needs the compute.

That is effectively a form of customer-supported project finance.

This is the lesson NeoCloud's data center operators and infrastructure investors should study.

So the PRD gives me all the requirements I can hand the developer who can then put all the pieces together.

And then I'll come back and we'll run through and we'll use then Cloud to do all the testing.

around do all these pieces work together or not? Are the pixels in the right places or not? So we use it a lot for PRD and we use it a lot for testing.

In some cases I can have it write draft code for me as well and build demos in a product like Netlify.

So Netlify is a tool that you can actually write the prompt in Cloud, write it for Netlify or write it for Loveable, and then post the prompt in Loveable or Netlify and it'll build a demo app for you.

Now, does it go to a database? Well, it can, right? But you can build a demo super fast.

So if you're a product founder and you're thinking about doing a new product or a new idea, you can use Netlify and Lovable to build the product.

If you have a good financial model, we'll use it.

Each element adds a new line item to the budget.

The cloud, which underpins much of this transformation, is neither free nor necessarily easy to manage.

Flexera's State of the Cloud report 2026 estimates that 29% of cloud spending is wasted, while 85% of organizations identify managing that spending is one of their top challenges.

Therefore, the right question for a company should no longer be, how do we incorporate AI? But rather, what problem do we want to solve with it? implementing technology simply because the competition is doing so can produce the exact opposite of what digitalization promises.

Higher costs, more systems, and greater complexity.

But you just have to, again, not just be a generalist admin, right? I think within that industry, then you have to start diving a bit deeper into that.

You know, again, if it's FinServ, say, you know, specifically Revenue Cloud, right? And more that you can do within Revenue Cloud and CPQ.

And again, learning more AI integration tools that'll help your specific business within that industry.

Again, it's kind of just...

And really what they're doing is just all the things are the same.

And they're now, instead of just using Excel, they're using Cloud.

And they're going to pay for it.

And again, there's nothing wrong with that.