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Oracle Launches Cloud@Customer, Bringing the Autonomous Database to the Data Center

Oracle has announced the general availability of Exadata Cloud@Customer, a managed service that enables enterprises to unlock the previously cloud-first features of Oracle's Autonomous Database for on-premises data centers. For enterprises that must conform with regulatory and/or technical challenges that force on-premises database residency, this offering is ideal.

Up to this point, the innovations provided by Oracle’s Autonomous DB were only available to Oracle cloud customers. Enterprise customers that wanted the benefits of autonomous scaling and tuning, let’s say for seasonal workloads, or in general, were not able to use the service. With general availability of Exadata Cloud@Customer, Oracle is bringing Autonomous DB to the on-premises data center via this managed service offering.

Existing applications in a data center can now seamlessly connect to the service without any application changes. This represents a significant new product introduction. It opens up the Autonomous Database to a broad base of enterprise customers that prefer to keep their data behind their firewalls.

Dedicated Region Cloud@Customer

The launch of the Dedicated Region of Oracle’s Cloud@Customer now provides a fully managed cloud region that allows customers to run all Oracle cloud applications in their own data center. The move to hybrid cloud is a clear trend, and this product leverages this trend for customers to run workloads either on premises seamlessly or in the cloud. For example, Oracle Fusion Apps can be run in either environment yet have access to the same updates.

Dedicated Region is uniquely tailored to customers in highly regulated industries with stringent latency/data residency requirements coupled with reduced operational costs by bringing workloads on premises.

Pricing for the Dedicated Region Cloud@Customer service starts at $500,000 per month, with application pricing consistent with current Oracle Cloud pricelists. This offering competes directly with AWS Outpost and Azure Stack but is an expanded offering supporting all of Oracle's cloud services. By contrast, AWS Outpost does not currently support its proprietary databases Aurora or DynamoDB.

Key components of the Exadata Cloud@Customer include:

  • Runs in your data center behind your firewall
  • Public Cloud manages Exadata Cloud@Customer
  • One management console for Cloud@Customer and Public Cloud
  • Pay for what you use via Universal Credits

Our Take

The Cloud@Customer product brings Oracle into the same plane of competition with the mega-IaaS providers and even expands hybrid capabilities to the broader suite of Oracle DB and application offerings. The challenge is for Oracle to successfully drive adoption of their Gen2 Oracle Cloud solutions, which current data suggests are with smaller customers and ASPs. This could result in a long runway before Oracle can gain material market share in this space.

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