Part 3/7:
The Need for Larger Deals
A notable area of focus includes Oracle's need to secure larger contracts, particularly those similar to their arrangement with Meta. While there was initial excitement regarding deals with Meta, the immediate market reaction suggested skepticism about the long-term benefits. The pressures of fulfilling these larger contracts become increasingly apparent when considering the competition among tech giants who are also expanding their data center capabilities.
Despite having established important contracts with major players like Google, Amazon, and Microsoft, Lura cautions that as these companies complete their data center construction, they may have less need to rely on Oracle for supplementary services, potentially limiting Oracle's future growth.