Oracle Strengthens Position in U.S. Cloud Market Amid Growing Competition

Research Report Spotlights Oracle’s Rising Popularity Among Enterprises

According to a new report from Information Services Group (ISG) III, U.S. enterprises are increasingly adopting Oracle’s cloud solutions as the company competes with major hyperscale cloud providers.

The 2024 ISG Provider Lens™ Oracle Cloud and Technology Ecosystem report reveals significant growth in the U.S. public cloud market throughout 2024. Companies across various sectors are embracing as-a-service models like software (SaaS), platforms (PaaS), and infrastructure (IaaS). This trend is influenced by strict regulatory requirements and complex needs specific to large enterprises. Oracle’s strong offering of both infrastructure and applications sets it apart in this evolving market.

Bill Huber, a partner at ISG, commented, “Oracle is making headway in the U.S. cloud scene against other enterprise application players and hyperscalers. Its extensive provider ecosystem is integral to this growth. We have also observed Oracle presenting innovative cost strategies that will attract clients focused on optimizing expenses.”

High-growth industries, particularly technology, are turning to Oracle, with Oracle Cloud Infrastructure (OCI) becoming a key player. This positions Oracle as the fourth major cloud provider alongside AWS, Microsoft Azure, and Google Cloud. Established sectors, such as financial services and telecommunications, remain strongholds for Oracle due to their compliance and security needs. The expanding partner ecosystem, which includes global system integrators and specialists, further supports Oracle’s adoption.

OCI plays a pivotal role in Oracle’s cloud expansion in the U.S., allowing companies to run both Oracle applications and third-party custom applications. Clients appreciate OCI’s cost benefits, especially for essential services like computing and storage, as well as its robust security features and deployment flexibility. Furthermore, OCI is where Oracle is heavily investing in cloud-based AI, according to ISG.

As the cloud landscape becomes more complicated and costs rise, the demand for Oracle consulting and advisory services in the U.S. is growing. Companies launching Oracle cloud initiatives often seek partnerships with providers to ensure effective governance. Additionally, there is an increasing need for managed services, particularly those focusing on measurable outcomes.

Jan Erik Aase, another partner at ISG, remarked, “U.S. companies looking for Oracle managed services have numerous options. It’s crucial for them to carefully assess these offerings to avoid hidden costs and ensure the providers align with their business goals.”

The report also discusses key trends impacting Oracle users, such as the growing need for implementation services and the newly formed Oracle Customer Success Services, which emerged from the merging of different service teams.

For further insights on Oracle cloud challenges faced by U.S. companies, including best practices for migrating from on-premises systems to Oracle, you can refer to the ISG Provider Lens™ Focal Points briefing.

The report evaluates 30 providers across four categories: Consulting and Advisory Services, Implementation and Integration Services, Managed Services, and OCI Solutions and Capabilities.

Accenture, Cognizant, Deloitte, HCLTech, Infosys, LTIMindtree, TCS, and Wipro are recognized as Leaders in all four categories. Capgemini, KPMG, and PwC are Leaders in three categories each, while Centroid stands out in one.

Additionally, Centroid, Kyndryl, and Tech Mahindra are highlighted as Rising Stars in one quadrant each, showcasing promising portfolios and strong future potential.

Capgemini earned the title of global ISG CX Star Performer for 2024, reflecting the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of its Star of Excellence™ program.

A customized version of the report is also available through Cognizant.

The 2024 ISG Provider Lens™ Oracle Cloud and Technology Ecosystem report can be accessed by subscribers or purchased on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is a unique evaluation of service providers that combines data-driven research, market analysis, and insights from ISG’s global advisory team. It offers enterprises detailed data and analysis for choosing the right partners, while assisting ISG advisors in validating their market knowledge and recommendations for clients. This research covers providers globally, including regions like North America, Europe, and the Asia-Pacific, with further expansion planned.

About ISG

ISG III is an AI-centered global technology research and advisory firm. With over 900 clients, including 75 of the world’s top 100 enterprises, ISG leads in technology and business services, now leveraging AI for operational excellence and growth. Founded in 2006, it is recognized for its market data and the expertise of 1,600 professionals helping clients enhance the value of their technology investments.

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Press Contacts:

Will Thoretz, ISG
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Julianna Sheridan, Matter Communications for ISG
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