ORACLE: THE CLOUD TRANSFORMATION

CEO Strategic Memo

June 2030 | CEO Edition

Oracle's future depends on Oracle Cloud Infrastructure becoming a material part of our business by 2035.

Current state: OCI is 6% of revenue, growing 40%+ CAGR, but not yet profitable.

Target state (2035): OCI is 20-25% of revenue, 30% margin, driving company growth.

The strategy: 1. Gain share from AWS through database optimization and enterprise relationships 2. Build profitability through economies of scale (must reach 15%+ of cloud market) 3. Integrate OCI with legacy Oracle applications to create stickiness

The financial case: Every point of cloud market share represents ~$500M in annual revenue by 2035. We need to gain 4-5 points to transform the company.

The timeline: Know by 2033-2034 whether this works.