Zoom Video Communications (ZM -0.65%), the high-flying video conferencing platform made popular amid the COVID-19 pandemic, has tapped Oracle’s (ORCL -4.60%) Cloud to support its growth, bypassing cloud leaders Amazon (AMZN -1.85%) and Microsoft (MSFT -1.39%).
In a press release, Zoom CEO Eric Yuan said the company had explored multiple platforms and Oracle Cloud Infrastructure stood out in its ability to help the tech stock meet all the demand it's encountering.
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“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 Yuan in the press release, “We chose Oracle Cloud Infrastructure because of its industry-leading security, outstanding performance, and unmatched level of support.”
To say Zoom is experiencing red-hot growth would be an understatement. Since the pandemic forced millions of people to shelter in place and work from home, Zoom has become an important tool to remain connected. At the end of December, it had 10 million peak daily users. That has surged to over 300 million as of last week. Zoom said that within hours of deployment Oracle's cloud was able to support hundreds of thousands of Zoom meeting participants at the same time. Since that it has increased, enabling millions of simultaneous meeting participants.
The move to tap Oracle as its cloud partner may come as a surprise to Amazon Web Services and Microsoft given they are the leaders in the cloud market. As of the fourth quarter, AWS had 32.4% market share while Microsoft controlled 17.6%. Oracle didn’t make it in the top four.
