Oracle wins cloud business from McDonald's, Albertson's

September 10, 2020 5:02 PM

By Stephen Nellis

(Reuters) - Oracle Corp (NYSE: ORCL) on Thursday said it won deals with McDonald's Corp (NYSE: MCD), Albertsons Companies Inc (NYSE: ACI) and Humana Inc (NYSE: HUM) to move some of their work to Oracle's cloud computing services.

Oracle also said it won a deal with business software firm Xactly in which Xactly will move the majority of its computing work to Oracle's cloud service.

Oracle has been working to catch larger cloud rivals such as Amazon.com's (NASDAQ: AMZN) Amazon Web Services or Microsoft Corp's (NASDAQ: MSFT) Azure. The Redwood Shores, California company has expanded its cloud computing business this year with wins from customers such as Zoom Video Communications Inc (NASDAQ: ZM) and data centers in more countries.

Oracle said McDonald's will move its North American financial systems to Oracle's cloud. Grocer Albertsons and insurer Humana will also move some of their applications to Oracle's services.

In addition to large businesses, Oracle is also trying to recruit mature independent software firms to its cloud to compete with Amazon and Microsoft. Founded in 2005, Xactly makes software that companies use to help track compensation for sales staff as they make deals. Xactly delivers its software as a service over the internet and has primarily used its own co-located data centers leased from providers such as Equinix Inc (NASDAQ: EQIX) to do so.

"As we grow, the data centers get full, things slow down and we have to write a giant check to build another data center," Xactly Chief Executive Chris Cabrera told Reuters in an interview

Under the deal, Xactly will move its flagship product, called Incent, to Oracle Cloud Infrastructure. The two companies did not disclose the size of the deal, but Cabrera said it would be the "majority" of Xactly's computing work, while some smaller products that run on clouds at Amazon and Salesforce.com Inc (NYSE: CRM) will remain on those clouds.

(Reporting by Stephen Nellis in San Francisco; Editing by Cynthia Osterman)

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