Oracle (ORCL) has landed a major cloud contract. The NATO Communications and Information Agency (NCIA) is moving its mission-critical systems to Oracle Cloud Infrastructure (OCI). This means NATO’s tech and cyber hub will rely on Oracle to power secure communications, defend networks, and support military operations.
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NCIA plays a central role in connecting NATO forces, defending its networks, and supporting military operations across member nations. To modernize its infrastructure, NCIA is adopting Oracle’s distributed cloud model, which is designed to meet government and defense requirements for data residency and control.
With OCI, NATO will gain access to sovereign cloud solutions for sensitive data, enterprise-grade security, and advanced AI capabilities. This is expected to boost security, improve performance, and support NATO’s overall digital transformation.
The migration will be led by Oracle partners Red Reply and Shield Reply, alongside defense contractor Thales (THLLY).
Oracle’s Booming Cloud Business
The deal strengthens Oracle’s position in the defense and government cloud market, competing with other major cloud providers like Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL).
It comes as Oracle’s cloud business is booming. The company recently reported a 359% surge in remaining performance obligations (RPO) to $455 billion, signaling strong demand for Oracle’s cloud infrastructure.
With ORCL stock up nearly 89% this year, Oracle’s NATO win could serve as another catalyst pushing it toward the trillion-dollar valuation territory.
Is Oracle a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Oracle stock based on 25 Buys and nine Holds assigned in the past three months. Further, the average ORCL price target of $324.48 per share implies 4.07% upside potential.
