The Future of Oracle in Morocco
Oracle ORCL is embarking on a journey to strengthen its research and development (R&D) capabilities in Morocco. The tech giant plans to enhance its local workforce by bringing in 1,000 information technology professionals. This strategic move is geared towards ramping up the development of ORCL’s cutting-edge technologies to tackle global customer challenges head-on.
By expanding its R&D footprint in Morocco, Oracle aims to tap into the country’s rich talent pool to fast-track the creation of solutions that cater to a global audience.
This expansion is not just about adding numbers; it’s about empowering young Moroccans to take the reins in crafting innovative solutions across transformative technologies like artificial intelligence (AI), big data, cloud computing, and cybersecurity. In doing so, Oracle is cementing Morocco’s status as a digital hub within the region.
Oracle’s strategic move comes on the heels of its establishment of the Morocco Development Center located at Casanearshore Park in Casablanca. Researchers at this center harness ORCL’s cloud, AI, and machine learning technologies to tackle complex challenges spanning various industries.
About 40% of the new positions will be distributed beyond the Casablanca and Rabat-Salé-Kenitra regions, opening up opportunities across Morocco. This outreach includes the establishment of new Oracle offices in Agadir this year, with plans to expand further into Northern Morocco within the next two years.
Driving Innovation in AI: A Gateway to Revenue Growth
Steering its focus towards artificial intelligence (AI), Oracle continues to make significant strides in this domain. Recent developments include groundbreaking solutions such as Oracle Code Assist, Oracle Database 23ai, and NVIDIA NVDA AI Enterprise on Oracle Cloud Infrastructure (“OCI”).
Oracle’s latest innovation, Oracle Code Assist, stands out as an AI-driven coding companion poised to revolutionize the development landscape. Powered by substantial language models hosted on Oracle Cloud Infrastructure, this tool is specifically tailored for Java, SQL, and OCI application development. It offers developers personalized recommendations that align with organizational standards and existing codebases.
Among its AI advancements, Oracle Database 23ai is a standout, ushering in a new era of database technology. This suite of cloud services seamlessly integrates AI functionalities, focusing on streamlining AI data utilization, expediting app development, and supporting critical workloads with over 300 new features included in this long-term support release.
Moreover, Oracle’s collaboration with NVIDIA to introduce NVIDIA AI Enterprise within OCI Supercluster in the Oracle U.S. Government Cloud region underscores its commitment to serve sovereign AI needs. This partnership facilitates the training and deployment of AI solutions for U.S. government clients, offering access to OCI’s robust suite of services, bolstered by high-performance accelerators.
These advancements are poised to propel Oracle’s cloud services and license revenues in the forthcoming quarters.
Analysts estimate Oracle’s fiscal 2024 cloud services and license revenues to clock in at $43.24 billion, marking a 22.5% year-over-year surge. The projected earnings for 2024 are pegged at $5.58 per share, signaling an 8.98% year-over-year growth.
While Oracle maintains a Zacks Rank #3 (Hold), its shares have seen a 10.6% uptick year-to-date. This growth, though respectable, trails that of the broader Zacks Computer and Technology sector, which has surged 12%, pitting Oracle against formidable competitors like Salesforce CRM and Microsoft MSFT in the AI cloud market.
Oracle’s relentless pursuit of innovation, coupled with its strategic collaborations such as the one with NVIDIA, bodes well for fostering a competitive environment in the AI domain.