Joins AWS, Azure, and Google in offering enterprises cloud services on premises
Count Oracle among the public cloud providers that are now offering customers the ability to set up a cloud environment in their own on-premises data centers.
The Lowdown: The company this week rolled out Oracle Dedicated Region [email protected], a fully managed cloud region that enables enterprises to implement and run all of the vendor’s second-generation cloud services, such as Autonomous Database and Oracle Cloud applications, in their data centers.
The Details: While organizations continue to move more applications and data into public clouds to take advantage of the flexibility, scalability, and pay-per-use pricing model that they offer, about 70% of workloads remain in on-premises data centers. Over the past couple of years, public cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have taken steps to enable enterprises to bring those capabilities and benefits into their data centers.
With its new offering, Oracle is giving businesses the ability to get the same set of cloud services, APIs, SLAs, and security found in Oracle Cloud regions in their on-premises environments, starting at $500,000 a month. Company officials said Oracle Dedicated Region [email protected] is particularly beneficial to highly regulated or security-focused businesses with concerns about regulatory compliance, data residency and latency requirements, and the need to cut costs and modernize applications.
Customers get the same management capabilities and access to new features at the same time they become available in Oracle’s public cloud. They also can run such software as Oracle Fusion Cloud Applications, Cloud ERP, Cloud HCM, and Cloud CX. Pricing is based on services consumed at the same pricing as that offered in Oracle’s public cloud regions.
Oracle previously had offered parts of the cloud to on-premises data centers, such as its Exadata [email protected] service, but the new offering delivers a complete cloud environment.
The Impact: Oracle and other public cloud providers, seeing a hybrid world where enterprises will run workloads in multiple public clouds, as well as on-premises, want to expand their reach into corporate data centers. AWS does this with its Outposts, a fully managed service that includes placing Amazon servers, services, and APIs in the data center. Microsoft offers its Azure Stack on third-party servers, while Google’s Anthos lets users run Google Cloud services in the data center.
Mordor Intelligence analysts expect the hybrid cloud space to expand quickly in the coming years, from $45.7 billion last year to more than $128 billion by 2025, as companies continue to shift from traditional data centers to public and private cloud environments.
Background: After famously dismissing the cloud as a passing fad several years ago, Oracle co-founder and CTO Larry Ellison has made the cloud a pillar of the company’s efforts going forward, complete with infrastructure, software, and services. In its most recent quarter, Oracle saw cloud services and license support revenue grow 1% year-over-year, to $6.8 billion.
However, the company is battling in a highly competitive and crowded public cloud space dominated by AWS (with 33% market share), Microsoft, and Google Cloud, according to Synergy Research Group. Chinese companies Alibaba and Tencent also are growing, while Oracle is listed with Salesforce, IBM, and Rackspace as a strong niche player.
The Buzz: “Enterprise customers have told us that they want the full experience of a public cloud on-premises, including access to all of Oracle’s cloud services, to run their most important workloads,” said Clay Magouyrk, executive vice president of engineering for Oracle Cloud Infrastructure. “With Oracle Dedicated Region [email protected], enterprises get all of our second-generation cloud services, including Autonomous Database, in their data centers. Our major competitors can’t offer customers a comparable dedicated cloud region running on-premises.”
“With Dedicated Region [email protected], Oracle delivers a slice of its public cloud experience into customer datac enters, with no changes in pricing or capabilities,” said Deepak Mohan, research director at IDC. “This represents a new direction for public cloud providers, who have historically offered only limited versions of their services to customer premises. Oracle Dedicated Region [email protected] brings the full capabilities of Oracle Cloud Infrastructure and Oracle Fusion Cloud Applications, including over 50 services, to customer premises. This brings together public cloud service capability with the compliance, latency, and co-location benefits of on-premises—which can be a game changer for large-scale digital transformation efforts at enterprises.”
“With Oracle Dedicated Region [email protected], we can use Oracle Exadata as a cloud service and achieve greater agility, such as seamless expansion, while maintaining high availability at the same level as on-premises,” said Tomoshiro Takemoto, senior corporate managing director for Nomura Research Institute. “Built in our own data center, it also enables us to provide SOC2 reports based on Japanese security standards in financial industries and allows us to access broader cloud services and tools provided by Oracle and further increase our business value for our customers.”
“Oracle Dedicated Region [email protected] enables a variety of use cases, from migrating Oracle ERP and CRM applications to deploying custom developed applications using Oracle Database, as well as implementing Digital Innovation Services (blockchain, AI [artificial intelligence], Big Data) and high-performance computing, all while following the country regulations regarding data sovereignty,” said Said Al-Mandhari, CEO of Oman ICT Group.