Today, I wanted to share two announcements. First, I am excited to announce the availability of Oracle Dedicated Region Cloud@Customer – a fully-managed cloud region bringing ALL of Oracle’s second-generation cloud services in customer’s datacenter, starting from only a $500K/month commitment over three years, purely via consumption. Designed for enterprises that need to keep certain applications on-premises for data residency or stringent latency requirements, while using the public cloud for everything else. Now, before diving into the details, I wanted to share a bit of a recap about Oracle’s journey on building a second-generation cloud and how that continues to evolve Oracle’s Cloud@Customer offerings.
Enterprises have found it costly and difficult to move to first-generation cloud infrastructure because of the inherent mismatch between traditional application architectures and cloud architecture, and for workloads that can’t move to the public cloud these challenges are magnified. Enterprises have access to only a small subset of cloud services on-premises, and that too with a limited set of features and capabilities compared to what’s available in the public cloud. This why we developed Oracle Cloud Infrastructure (OCI) – a second generation cloud that continues to deliver the benefits of first-generation cloud (self-service, ease of use, scalability, just in time provisioning) while enabling the most complex and demanding workloads to “just work” on cloud infrastructure that offers industry leading price-performance and the highest levels of security.
Naturally, customers that couldn’t move some workloads to the public cloud demanded Oracle’s second-generation cloud infrastructure to be delivered on-premises. So, starting in 2019, we delivered Exadata Gen 2 Cloud@Customer, bringing the outstanding performance and reliability of Exadata as a managed service in customer’s datacenter. Large banks, healthcare providers, insurance, and pharmaceutical companies (to name a few industries) were able to modernize their data infrastructure using an OPEX model, reduce maintenance overhead, and reduce TCO by up to 47%, all while keeping data on premises to comply with regulation and internal policies.
We quickly learned that delivering a single high value service like Exadata or select services (like compute and storage) is not enough for most Enterprises. We heard two consistent themes from customers that are delighted with our Exadata Gen 2 Cloud@Customer offering a) they want the full experience of the public cloud on-premises to help them consolidate entire applications on second-generation cloud infrastructure and b) they want access to ALL modern cloud services on-premises so that they can innovate at the rate of Oracle’s innovation. One key observation while building our second-generation cloud is that customers are willing to adopt new technologies when they are given the controls and flexibility to reduce risk. By bringing modern cloud services on-premises, customers can operate legacy applications effectively and give many applications the best chance of being incrementally upgraded. Our customers challenged us to bring ALL of Oracle’s second-generation cloud services on-premises, in a pay-for-what-you-use fashion, with the same assurances and SLAs of the public cloud.
Oracle Dedicated Region Cloud@Customer brings ALL of Oracle’s second-generation cloud services on-premises, starting from only a $500K/mo consumption-based commitment.
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