12:01 PM EDT, 09/25/2024 (MT Newswires) -- Oracle (ORCL) has pivoted to enable its databases to run on major cloud platforms like Microsoft's ( MSFT ) Azure, Alphabet's (GOOG, GOOGL) Google Cloud, and Amazon.com's ( AMZN ) Amazon Web Services, adopting a "run anywhere" model to meet customer demand, UBS said in a note emailed Wednesday.

"The database cloud migration process has not yet kicked-off and in our view most investors have yet to wrap their arms around the potential boost to Oracle, the impact on Microsoft ( MSFT ) and even the long-tail impact on [MongoDB ( MDB ) ]," UBS said.

Feedback on Database@Azure is largely positive, with experts calling it a "game changer" that could lead to one-third of Oracle's users migrating and increasing revenue by 25%, UBS said, adding that this transition is expected to enhance Oracle Cloud Infrastructure and support over 50% infrastructure as a service growth beyond 2025, mainly benefiting Oracle in 2026 and later.

Migrating Oracle databases to Azure could significantly boost workloads, as over 80% are still on-premises, and this shift is crucial for major cloud providers given that only 35% of IT workloads are in public clouds, while Oracle's strategy to reduce database churn may limit losses to competitors, impacting the growth of smaller rivals like MongoDB ( MDB ) if customers choose the "Big 3 cloud providers" over alternatives, the note said.

UBS reaffirmed its buy rating on Oracle with a 12-month price target of $200.

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