Oracle Corp., which says its Dedicated Region Cloud @ Customer offering has been an unconditional success with large customers, today introduces a cheaper version of the local cloud stack along with a rack-level package that delivers a selection of cloud service customers can implement in their data centers.
Announced nearly two years ago, Dedicated Region Cloud @ Customer delivers a full version of Oracle’s public cloud, including its database and software applications, in a local package. Customers must set aside 2,200 square feet of data center space and pay $ 6 million annually for at least three years to get what is equivalent to a complete Oracle cloud to call their own.
While the cost may seem daunting, “it’s quite reasonable compared to the cost of operating Oracle infrastructure with internal resources,” wrote David Floyer, chief technology officer at Wikibon, SiliconANGLE’s sister research firm, in an analysis. “For large organizations, this is a relatively small investment over three years.”
Less space, lower costs
The new offer reduces the number of racks customers need to install in their data centers from 50 to 12, and costs from $ 6 million to $ 1 million annually with a minimum commitment of four years. Customers get all of Oracle’s cloud services along with its Fusion series of enterprise applications at the location of their choice, paying only for what they spend in addition to the annual fee.
“This is something any global business can take a look at,” said Leo Leung, Vice President of Product Marketing for Oracle Cloud Infrastructure. “The public cloud is still the primary option for most workloads. These are for the workloads that can not be in the cloud.”
Leung said these include applications that are subject to data sovereignty rules or that must be physically close to customers for performance or regulatory reasons. He cited the example of the Japanese economic research and consulting firm Nomura Research Institute Ltd., which uses Dedicated Region Cloud @ Customer to host a performance-sensitive software-as-a-service application and the Oman government. The country has been too late to adopt public cloud infrastructure and has therefore chosen to implement its own.
“There’s huge interest,” Leung said. “There are so many companies that have workloads that can’t move to the public cloud completely.” He declined to estimate the overall addressable market, but called it “pretty significant”, saying the upside is attractive. “The expectation is that people may be able to operate at this level, but as they run more applications and services, their use will grow,” he said.
Oracle will adapt each dedicated region in a repeatable way based on customer specifications, Leung said. “We plan with the customer based on initial workloads, so the implementation is largely customized,” he said. “We help with capacity planning, so we want to scale as they scale based on what they use.”
The offer will only run Oracle software, but customers who want to connect to external applications, such as Salesforce.com Inc.’s customer relationship management, can do so through pairing services that offer both pre-built and custom integration options.
Managed on-premises cloud
The second new offering to be announced today – Oracle Compute Cloud @ Customer – is intended for customers who need to manage a small number of workloads on site, but who do not need to manage the cloud stack soup in an emergency. Similar to Amazon Web Services Inc’s Outposts, Microsoft Corp.’s Azure Stack and Google LLC’s Anthos, it’s a more generalized version of Exadata Cloud @ Customer, which the company announced along with the dedicated regional offering in July 2020.
But where Exadata Cloud @ Customer is oriented towards database-intensive workloads, Compute Cloud @ Customer is more focused on computer and storage resources. Unlike the dedicated region, which can be completely autonomous, the Exadata and Compute Cloud @ Customer packages require a connection to Oracle Cloud, where Oracle manages the local resource.
Leung said Oracle has already installed nearly 1,000 Exadata Cloud @ Customer devices in 60 countries. He did not specify prices for the new offer, but Oracle’s published prices for the Exadata version range from $ 8,000 per share. month for a base system at $ 43,200 per month. month for a full-rack device.
Oracle now offers a full range of on-premises cloud infrastructure, ranging from a range of rentable, robust servers announced early last year, to the advanced dedicated regions, Leung said.