Instead of going with cloud giants Amazon or Microsoft, Zoom announced on Tuesday it had picked Oracle as its cloud infrastructure provider. It was a big customer win for Oracle as Zoom has seen its video conferencing service skyrocket during the COVID-19 crisis. With millions of employees now working from home, along with students that are also home bound, Zoom has seen massive growth.
Financial terms of the deal weren't announced.
Zoom said it now has 300 million daily meeting participants, which meant it needed additional cloud capacity. Zoom said it picked Oracle Cloud Infrastructure for its "advantages in performance, scalability, reliability and superior cloud security."
Within hours of deployment, Oracle Cloud Infrastructure supported hundreds of thousands of concurrent Zoom meeting participants. After reaching full production, Zoom said it's now enabling millions of simultaneous meeting participants on Oracle Cloud Infrastructure.
“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 Zoom CEO Eric S. Yuan, in a statement. “We chose Oracle Cloud Infrastructure because of its industry-leading security, outstanding performance, and unmatched level of support.”
According to a story by CNBC, Zoom was already using Amazon and Microsoft's cloud services prior to the company going with Oracle for its latest expansion.
According to a February report by Synergy Research Group (SRG), AWS had 33% of the market share at the end of the most recent fourth quarter followed by Microsoft (18%), Google (8%), IBM (6%), Alibaba (5%), and Salesforce (3%.)
Zoom has struggled with not having encryption and other security measures in place during the coronavirus pandemic, which led to "Zoombombing" by disruptive, uninvited guests on video conferences. Zoom has been focused on bolstering its security features over the coming months as it has become a critical component of work from home initiatives.
In October, Oracle announced that it was hiring close to 2,000 new employees worldwide to help grow its Oracle Cloud Infrastructure business. Oracle said the new jobs, which will include software development, cloud operations and business operations, would support its expanding infrastructure customer base. The company also hinted at "new product innovations" and more cloud regions around the globe