Zoom chooses Oracle over Azure or AWS as new cloud provider

Rabia Noureen

While Zoom’s popularity has significantly increased during the past couple of months, the increased usage came along with an unprecedented load on their servers. To deal with these issues, today Zoom has announced a partnership with Oracle to leverage the security and scalability of its Cloud Infrastructure service (via CNBC).

While the terms of the deal are not disclosed yet, Zoom’s CEO Eric Yuan shared some details in a press release today. “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.

Interestingly, the US-based video communications platform quickly completed the deployment process for Oracle Cloud Infrastructure. Starting today, Zoom now delivers over seven petabytes through Oracle Cloud Infrastructure servers on a daily basis, with the ability to support hundreds of thousands of concurrent Zoom meetings. Moreover, the recent deployment will also allow Zoom to cope with a further increase in demand, which means that millions of users would be able to simultaneously conduct Zoom meetings.

Notably, Zoom has bypassed some major cloud leaders including Microsoft, Alphabet and Amazon to sign this new deal with Oracle. In the press release, Zoom stated that “We chose Oracle Cloud Infrastructure because of its industry-leading security, outstanding performance, and unmatched level of support.”

It’s important to note that Zoom was already an AWS and Azure customer, though with Zoom already competing with Microsoft in the video conferencing space, its management may have been interested in opting for other cloud providers. Anyway, this move brought some good news for Oracle as the announcement resulted in a slight change in Oracle’s stock.

Update 10:30AM BST: We’ve updated our story to clarify that Zoom was already using Microsoft Azure and Amazon Web Services, and this new deal with Oracle will only expand the company’s service capacity.