Oracle announced Tuesday that Zoom Video Communications, makers of the hugely popular Zoom videoconferencing service, has picked Oracle as a key cloud infrastructure provider. The companies began working together about six weeks ago to deploy Zoom's core meeting service on Oracle's infrastructure. As a multicloud operation, Zoom still relies on Amazon Web Services and Microsoft Azure for various computing needs.
Nonetheless, the deal is a major win for Oracle's cloud computing business, and even more so considering Zoom's newfound ubiquity. The novel coronavirus pandemic has dramatically increased the need for collaboration and videoconferencing software, with millions of students and employees working from home and relying on software tools to stay connected.
Zoom was an early beneficiary of the videoconferencing boom -- the company grew from 10 million users in December to more than 300 million users today. Zoom CEO Eric Yuan said in a statement that the company needed to massively increase its service capacity to manage the swell in daily users, and decided to bring in Oracle as part of its multicloud arrangement.
Oracle is not disclosing the size of the deal but the company is seizing the opportunity to tout its next generation cloud technology. Oracle said Zoom is currently transferring upwards of seven petabytes through Oracle Cloud Infrastructure servers each day, roughly equivalent to 93 years of HD video.
"Video communications has become an essential part of our professional and personal lives, and Zoom has led this industry's innovation," said Oracle CEO Safra Catz. "We are proud to work with Zoom, as both their cloud infrastructure provider and as a customer, while they grow and continue to connect businesses, people and governments around the world."
In addition to scaling capacity, Zoom is also in the midst of its 90-day plan to address and improve the security and privacy capabilities of its platform. As usage of its videoconferencing service soared, security experts found flaws in Zoom's code and called out privacy issues with user data management. Facing mounting criticism, Zoom announced on April 1 that it would stop development on all new app features and focus entirely on security.
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