The 2025 Gartner® report Assessing Oracle Cloud Infrastructure for Isolated Private Cloud, states that: “growing sovereignty and regulatory needs are driving demand for isolated private clouds.” The report “provides a technical assessment of Oracle Cloud Infrastructure Dedicated Region and Oracle Cloud Isolated Region, analyzing their strengths and weaknesses to guide I&O technical professionals in their evaluation process.”
Oracle believes that this report re-affirms the need for solutions that government, defense, and enterprise customers increasingly require: private and isolated cloud options that deliver all of the same services and features as in the public cloud, made available on premises, for increased security, compliance, and sovereignty.
Oracle Cloud Infrastructure Offerings which provide the full cloud, on prem:
Oracle Cloud Infrastructure (OCI) Dedicated Region:
OCI Dedicated Region enables customers to rapidly deploy full-stack OCI in a Dedicated Region, with an expandable footprint starting as small as 3 Racks, optimized for diverse environments. Oracle is the only hyperscaler which provides its full cloud – all 200+ cloud and AI services – wherever a customer needs it. The pre-configured modular infrastructure and streamlined service design enables a seamless experience while accelerating time-to-market. With OCI Dedicated Region, customers can access all OCI Cloud and AI services for their complete cloud journey, from migration to modernization to innovation. Customers are able to run nearly any workload, even mission-critical and AI workloads, and address stringent sovereignty and regulatory requirements.
OCI Dedicated Region combines the benefits of running in the cloud – including simplicity, scalability, flexibility, and cloud economics; with the benefits of running in your own data center – including performance, compliance, physical security, and sovereignty. OCI Dedicated Region provides the same 200+ cloud and AI services, the same Oracle-standard SLAs, the same low pricing, and the same customer experience as in its public cloud regions. It’s a full Oracle Cloud region, dedicated to a specific customer. With a local control and data plane, and Oracle-managed cloud hardware, OCI Dedicated Regions enable constant innovation and enhancement, as they receive thousands of updates, just like a normal OCI Public Region. These services are billed at identical rates as in a public cloud region, and customers pay for just what they use. And Oracle is considerably more price efficient than any other hyperscaler – Oracle is the only hyperscaler which charges the same consistently low price for its services anywhere across the globe (identical pricing worldwide, with no regional upcharges for any location). This results in prices that are 50% less for compute, 70% less for storage, and 80% less for networking, as compared with other hyperscalers (Oracle Cloud Economics).
Read multiple OCI Dedicated Region customer success stories from customers like NRI, Oman’s ITHCA Group, and Vodafone.
Oracle Cloud Isolated Region is purpose-built for the most demanding security and sovereignty requirements. It is permanently air-gapped; both physically and logically disconnected from the public internet and any external network, including Oracle’s own infrastructure. Unlike systems that merely disconnect temporarily, Oracle Cloud Isolated Region maintains operational autonomy, helping to ensure that sensitive and classified workloads run securely behind permanent air gaps.
Oracle is the only hyperscaler which provides its full cloud, fully disconnected. Oracle Cloud Isolated Region delivers OCI’s extensive service catalog, including compute, storage, networking, databases, analytics, and a comprehensive AI/ML portfolio, with features and APIs consistent with Oracle’s Public Cloud regions. Mission owners can run classified command and control (C2) systems, process petabytes of Intelligence, Surveillance, and Reconnaissance (ISR) data, train sovereign AI models on sensitive datasets, and deploy generative AI applications for mission planning and analysis. Oracle SaaS capabilities, including Oracle Fusion Cloud Applications, are also available for back-office modernization. Deployments start at 17 racks and scale to over 450.
Learn more about Oracle Cloud Isolated Region, Oracle National Security Regions (including the Classified Oracle Cloud for US National Security), and Oracle Solutions for Global Defense Alliances.
Oracle Alloy is a complete cloud infrastructure platform that enables partners to transform their business model, to become Cloud Service Providers (CSPs) themselves. Oracle Alloy leverages the same OCI Dedicated Region infrastructure footprint and 200+ Cloud and AI service offering catalogue, enabling partners to offer a full range of cloud services to expand their businesses. Partners control the commercial and customer experience of Oracle Alloy; and can customize and extend it to address their specific market needs. Oracle Alloy is designed to give partners better control over the change management process and operations to fulfill regulatory and sovereignty requirements.
Oracle is the only hyperscaler with a solution like Alloy which provides partners with everything they need to successfully become a CSP. Partners receive everything a normal OCI public cloud would require to run; including OCI hardware, cloud services, and then they are provided with the ability to make it their own cloud. Partners are able to define their own portal experience (with distinct operator and end-user consoles), billing mechanisms, and customer experience. They are provided with Oracle’s internal tools and services to build a portfolio of value-added services, all while getting support from Oracle – whether it’s to run and operate the region, or to partner with Oracle to help drive go to market and adoption in certain areas. This is especially relevant in the current macroeconomic political environment, where more and more countries are defining cloud services as “critical infrastructure,” resulting in regulatory changes. Alloy becomes a strategic solution for our partners to offer cloud services in restricted or highly sovereign markets.
Read multiple OCI Dedicated Region customer success stories from customers like du in the UAE, stc in Saudi Arabia, and TEAM IM in New Zealand.
Deployment Model Selection Based on Customer Requirements:
The Gartner report, Assessing Oracle Cloud Infrastructure for Isolated Private Cloud, 2025 “provides a technical assessment of Oracle Cloud Infrastructure Dedicated Region and Oracle Cloud Isolated Region, analyzing their strengths and weaknesses to guide I&O technical professionals in their evaluation process;” which Oracle believes can be used as a helpful guide to determine which cloud deployment model is right for you.
In Oracle’s opinion, the Gartner analysis in the report is considerably more detailed than the short excerpt below; but the cliff notes version summarizes that “OCI Dedicated Region should be the default choice for use cases driven by data residency, regulatory compliance, and low latency to on-premises systems, where a persistent connection to a cloud control plane for management is acceptable.” On the other hand, Gartner assets, “OCIR is the only option for use cases where the primary driver is a non-negotiable requirement for a full air gap. These use cases typically involve classified government workloads or highly sensitive intellectual property where any external connectivity presents an unacceptable risk.”
Next Steps:
Gartner Subscribers can Read the Full Report here. Connect with Oracle to learn more about OCI Dedicated Region, Oracle Isolated Cloud Region, and Oracle Alloy, map your requirements and use cases, and select the full on-premises Oracle Cloud solution that best meets your needs.
Gartner, Assessing Oracle Cloud Infrastructure for Isolated Private Cloud, 31 October 2025. GARTNER is a trademark of Gartner, Inc. and/or its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.