Yahoo Financeยท2025-10-09 18:05Core Insights - Oracle is enhancing its sovereign cloud strategy through a partnership with SoftBank, focusing on secure AI and cloud services in Japan, addressing the rising demand for data sovereignty among enterprises [1][6] Group 1: Partnership and Offerings - SoftBank will introduce Cloud PF Type A, a suite of cloud and AI services powered by Oracle Alloy, allowing it to provide over 200 Oracle Cloud Infrastructure services from Japanese data centers [2] - The eastern Japan facility is set to launch in April 2026, with the western facility following in October 2026 [2] - Oracle Alloy serves as a comprehensive cloud infrastructure platform, enabling partners to meet data sovereignty and governance requirements, which is crucial for organizations undergoing digital transformation in Japan [4] Group 2: AI Integration and Market Demand - SoftBank plans to incorporate generative AI capabilities and high-performance GPUs into its offerings, targeting various enterprise needs across different sectors [5] - The phased rollout of AI services highlights the increasing significance of localized cloud infrastructure that aligns with data residency requirements [5] Group 3: Market Position and Financial Outlook - This partnership aligns with Oracle's global strategy of establishing sovereign cloud solutions, positioning the company as a leader in addressing enterprise concerns regarding data control and regulatory compliance [6] - Oracle reported remaining performance obligations of $455 billion at the end of Q2 2025, marking a 359% year-over-year increase, with cloud-based revenue per share rising by 500% year-over-year [7] - The company anticipates cloud infrastructure revenue to reach $18 billion in 2025 and grow to $144 billion by 2029, with total sales projected at $44.37 billion in 2025, supported by contracts with major AI firms [8]