Oracle announces ‘industry’s first fully-managed, on-premises cloud region’

Oracle announced the ‘industry’s first fully-managed, on-premises’ cloud region on Wednesday, bringing all their second-generation cloud services directly to customer data centers.

The Cloud@Customer service provides enterprise data centers with Oracle’s Autonomous Database and SaaS applications, starting at US$500k per month.

“[No other provider] gives you a complete public cloud behind your firewall, dedicated to you. This is a first in the cloud industry,” said Larry Ellison, Oracle’s Co-Founder and Chief Technology Officer, during a digital presentation.

Cloud adoption by enterprises is rapidly increasing, driven by the flexibility of subscription models, scalability and agility offered by cloud computing. 

Many businesses still often use hybrid solutions to run some of their workloads and cloud software on their own hardware within data centers due to data localisation requirements or the need for speedier connections.

But these hybrid cloud solutions typically limit the number of cloud features and services available in public cloud regions.

“Enterprise customers have told us they want the full experience of a public cloud on-premises to run their most important workloads,” said Clay Magouyrk, the Executive Vice President of Engineering at Oracle Cloud Infrastructure.

Oracle’s Cloud@Customer will bring more than 50 services to on-premises, providing ‘the highest levels of security’ and ‘strong isolation of customer data, which remain local to customer data centers’.

Deepak Mohan, Research Director at market intelligence firm IDC, said: “This represents a new direction for public cloud providers, who have historically offered only limited versions of their services to customer premises.”

Customers will be required to pay for only the services they consume, which will total an approximate spending commitment of US$18 million over three years, reported Reuters.

“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,” said Mr. Mohan.

Oracle announced the first to adopt their new service will be the largest consulting firm and IT solutions provider in Japan, Nomura Research Institute (NRI).

NRI will start by moving its SaaS applications, used by 70% of capital markets firms in Japan, from on-premises locations to an Oracle dedicated cloud region in its own data center.

The IT solutions provider will use Oracle Exadata to provide SOC2 reports based on Japanese security standards in financial industries, said Tomoshiro Takemoto, the Senior Corporate Managing Director at NRI.

Oracle also revealed the availability of their Autonomous Database on Exadata Cloud@Customer as a standalone offering or as part of the new Cloud@Customer service.

This will combine the latest Database with their fastest platform, Exadata, to deliver cloud services in customer data centers without the challenge of data sovereignty laws or security concerns.

The Autonomous Database will allow organisations to automate systems to eliminate manual processes and reduce the risk of human error, ‘freeing developers from mundane maintenance tasks and enabling them to innovate and create more business value’, said Juan Loaiza, Executive Vice President for Mission-Critical Database Technologies at Oracle.

The new offerings were welcomed by global organisations, including enterprise cloud solutions provider, Samsung SDS, Japan’s the number one mobile carrier, NTT DoCoMo, and Japanese IT consultancy firm, RKK Computer Service.

Delivering Digital Innovation

Oracle’s new solutions have been celebrated by multinational companies for its ability to reduce operational costs and empower digital transformation efforts.

As a result, Oracle saw significant growth in cloud revenue for the final quarter of 2020 after opening a second cloud region in South Korea and being selected by Zoom to be their cloud infrastructure provider of choice to support remote working.

We will be joined by Oracle for an Executive Briefing to explore how you can manage your next digital transformation moves in a new world where digital is the driver of business.

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