Oracle Wants Its Cloud to Grow Inside Your Data Centers

Oracle Wants Its Cloud to Grow Inside Your Data Centers

Taking a different approach to hybrid cloud than some of its biggest competitors, Oracle has substantially beefed up the capabilities of its on-premises cloud product called Oracle Cloud at Customer. It gives companies the ability to use its cloud services but have them run inside their own data centers.

The company launched the Oracle Cloud at Customer service last year. It installs and manages all the converged hardware, software, and networking equipment on premises, essentially provides organizations a private version of its public cloud through a subscription-based model.

Oracle last week expanded services it offers in this way to include Software-as-a-Service applications, including ERP and CRM software, and its full suite of Platform-as-a Service offerings. The company previously only offered Infrastructure-as-a-Service, and some PaaS services on Oracle Cloud at Customer.

Analysts say the announcement allows Oracle to better compete against cloud rivals, such as Microsoft, IBM, Amazon, and Alphabet’s Google. All leading enterprise cloud players’ approaches to hybrid cloud are now starting to take shape, all quite different from each other.

Microsoft’s strategy, Azure Stack, is the closest to Oracle’s. Microsoft’s partners Dell EMC, Hewlett Packard Enterprise, and Lenovo started taking orders for the on-premises version of the public Azure cloud, earlier this month.

“The update to [Oracle’s] Cloud at Customer is competitive with Azure Stack,” Dave Bartoletti, VP and principal analyst at the Forrester Group, told Data Center Knowledge. “The appeal is for customers who want a bit of the Oracle Cloud running on-premises for whatever reason: security concerns, data residency, or simply a desire to control data and apps more directly.”

IBM’s BlueMix Private Cloud Local is another on-premises play that’s similar to Oracle’s and Microsoft’s, while Amazon Web Services and Google Cloud Platform at this point only offer migration and integration services.

“Azure, IBM, and Oracle are all trying to place their clouds in customer data centers, while AWS and Google are trying to make it as easy as possible to connect customer data centers to their clouds. It’s a slightly different approach,” Bartoletti said.

For example, Google this month struck a deal with Nutanix, a hyperconverged infrastructure vendor, to help organizations build hybrid clouds that integrate their Nutanix environments with GCP. Meanwhile, AWS partnered with VMware to help enterprises easily integrate their existing VMware environments with its public cloud. Last week, however, an anonymously sourced report appeared, saying the two may have a joint on-premises data center software product in the works.

IDC research VP Carl Olofson said Oracle’s latest upgrades of Cloud at Customer are important for the company because it wants to move as many existing customers to the Oracle Cloud as possible.

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