The Redwood City, Calif., tech company plans to deploy Oracle Cloud Infrastructure to help Zoom Video deal with an epic surge of interest in its videoconferencing services.
The coronavirus has forced businesses across the country to work remotely. And many average consumers have taken to the Zoom Video platform.
The deal comes as Zoom grapples with capacity issues, with 300 million daily meeting participants, up from 10 million in December.
Zoom has also struggled with security and privacy issues: so-called Zoombombing, in which meetings on its platform have been interrupted by hackers and pranksters.
On Tuesday Zoom's stock fell 4.3% to $157.62 as the San Jose, Calif., videoconferencing company scrambles to boost confidence in its services.
The company previously had launched a 90-day plan to strengthen the security and durability of its videoconferencing platform.
"We recently experienced the most significant growth our business has ever seen," Zoom Video Chief Executive Eric Yuan said in a statement. "Oracle Cloud Infrastructure was instrumental in helping us quickly scale our capacity."
The agreement, which came together in just six weeks, is a coup for Oracle, which is locked in intense competition in the cloud-infrastructure space with Amazon (AMZN) - Get Report and Microsoft (MSFT) - Get Report.
Before Oracle, Zoom relied on its own equipment and cloud computing services from Microsoft and Amazon.
In a statement, Oracle said that "within hours" its cloud infrastructure was supporting hundreds of thousands of "concurrent Zoom meeting participants," a number that has since expanded into the millions.
At last check Oracle shares edged 0.2% higher to $53.45. Zoom Video was off 4.1% at $157.78.