Shares of Oracle (ORCL) are climbing after the company posted better-than-expected first quarter results and announced partnerships with tech giants Amazon (AMZN) and Google (GOOG, GOOGL). Moor Insights & Strategy founder, CEO, and chief analyst Patrick Moorhead joins Asking for a Trend to dig into the earnings and discuss how the company stands to benefit from the AI race.

Moorhead says that Oracle is "on a roll," and that the partnership with Amazon Web Services (AWS) is monumental as "these two companies have been essentially at war with each other since AWS was formed 15 years ago." Combined with the Google partnership, he explains that the "Oracle database is very much alive and well, and their enterprise customers are demanding it."

He believes that the jump in the stock is justified, arguing, "There was this standoff that was happening for 10 or 15 years between Oracle and these classic cloud providers. And what they see is that enterprises want Oracle. They're not going to dump their Oracle database and just shift over to a cloud database." He notes that Oracle is the only company that focuses solely on commercial customers, while other names like Amazon have both commercial and consumer plays.

"Where Oracle has been exceptionally strong has been in the largest enterprise governments that require the most security mission critical environments and very highly regulated," he adds. Moorhead highlights three facets of cloud enterprises for the company: its Oracle Cloud Infrastructure (OCI), SaaS (Software as a Service) segment, and its commercial business. "On a scale basis, they're doing quite well," he says.

As AI becomes more of a priority, Moorhead notes that data will be the company's biggest play. He explains, "The biggest obstruction from enterprises going hardcore into AI is the data problem. It's getting the data right. It's co-mingling the right data to give generative AI the right solutions without leaking confidential information. And for the customers I talked about, Oracle is the place to go. So they will be the data broker for the generative AI age."

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This post was written by Melanie Riehl