What's going on?

Oracle reported strong quarterly results from its cloud business earlier this week.

What does this mean?

Oracle�s been plodding away in the database and software scene for years, so investors are wondering if a better-late-than-never push into the fast-growing cloud space can breathe new life into the tech company. The signs look promising: Oracle�s cloud segment posted revenue 45% beefier than the same time last year, and 29% when you strip out sales from its $2 billion-odd purchase of medical records provider Cerner last year. Oracle’s newest growth engine comes with real potential: the healthcare industry�s a little behind the cloud trend, so Oracle�s hoping Cerner can help it profit from a swell of companies poised to up their cloud spending. Founder Larry Ellison is certainly optimistic on all fronts, saying on Monday that Oracle�s fit to nab customers from its bigger rival Amazon.

Why should I care?

Zooming out: Everything you can do, I can do better.
Oracle plumping its organic cloud growth up 29% is no small feat, especially as businesses are cutting back over fears of a recession. But you can bet big dogs like Amazon, Microsoft, and Alphabet will want to trump that: they boasted bumper revenue growth between 30 and 40% last quarter, and they�ll want to keep that up ��allowing for a slight drop-off given the disastrous state of the world � when they report this quarter�s earnings in the coming months.

Zooming in: Oracle�s the underdog.
Oracle’s making headway now, but it took its time warming up to cloud-based solutions. So despite its recent efforts, Synergy Research Group estimates it still lags behind speedier rivals with under 5% of the cloud market. There�s a silver lining though: unlike Amazon and Microsoft, Oracle�s share price hasn�t yet reflected its cloudy achievements � or its founder�s sky-high hopes. So investors could soon spot the firm�s mounting momentum in the space, and give its share price a shot in the arm.