Contributed by Sriram Subramanian, Research Director, IDC
Enterprise adoption of cloud-based infrastructure has been increasing steadily. International Data Corporation (IDC) predicts the global enterprise spending on public cloud infrastructure to surpass that of traditional IT infrastructure by 2022. According to the recent IDC Worldwide Server Workloads Forecast more than 40% of all categories of enterprise workloads and most of certain workloads, such as content and collaboration applications, application development and testing, and web serving applications, will deploy on cloud-based infrastructure by 2024. Another recent survey showed that about 60% of enterprise respondents cited that they’re actively using hybrid cloud infrastructure.
As enterprises increasingly adopt cloud computing in their digital transformation journeys, they find themselves at an exciting crossroad: a disappearing perimeter and the promised land of the cloud.
Enterprises are applying a heterogeneous mix of technologies and capabilities best suitable for their business needs, including the following examples:
Applying AI and ML technologies to enhance the end-user experience, improve application capabilities, and increase application reliability.
Using containerized applications to improve scale, elasticity, and developer agility.
Benefitting from edge capabilities to enable innovative use cases and business opportunities.
Heterogeneous applications also have varied needs, such as scale, elasticity, low latencies, spatial restrictions because of geopolitical conditions, and regulatory compliance requirements among others. These applications are best deployed on the right infrastructure abstractions at the right location, including the following use cases:
AI inferencing requires low latencies and is best run at the location where the application is used, likely in a core data center. But you can train AI models at the core data center or even on public cloud infrastructure.
Applications with regulatory constraints or geopolitical limitations need to deploy in specific locations and might not be suitable to run in the public cloud. Similarly, applications that need specific processor architectures can’t migrate to the public cloud.
Modern applications, such as containerized applications and web-scale applications, are best suited to be deployed on cloud-based infrastructure.
Enterprises are increasingly deploying these applications in multiple locations. They don’t limit application deployments to specific locations but instead use the infrastructure continuum of cloud, core, and edge. This infrastructure continuum, along with pandemic-influenced remote working practices and social behavior, is resulting in the traditional enterprise perimeter truly disappearing.
Contrastively, enterprises have started to realize the agility and efficiency that cloud-based infrastructure enables through as-a-service capabilities and the potential savings in total cost of ownership through pay-as-you-go pricing models. Through the as-a-service infrastructure consumption model, the enterprises are also relieved of the overhead of managing the underlying infrastructure. In the previously mentioned survey, most of the respondents cited the availability of developer and cloud native services as one of the primary reasons for selecting a specific cloud service provider, indicating the importance of developer agility.
While adopting public cloud platforms provides the enterprise with the agility they need, it can require compromises in regulatory compliance and latency. Private cloud infrastructure enables this agility but has more operation overhead, making it a challenge to keep up with the innovations in public cloud and requiring upfront Capex investments.
With the disappearing data center perimeter, how do you enable the agility and scale that public cloud platforms provide anywhere?
Local cloud-as-a-service (LCaaS) offerings are the market response to the dilemma, in line with the proverb, “If the mountain won’t go to Mohammed, then Mohammed must come to the mountain.” IDC categorizes dedicated cloud service offerings that the service provider owns and manages, with the infrastructure on customer premises, as an LCaaS offering.
LCaaS offerings, such as Oracle Dedicated Region Cloud@Customer, enable customers to experience the as-a-service capabilities that public cloud platforms provide—anywhere. Because the service provider fully manages these offerings, the end user has no operational overhead. These offerings also enable pay-as-you-go pricing with or without minimal commitment, providing an OpEx consumption experience at the location of choice.
Though the LCaaS market is in early stages, it’s expected to grow rapidly. IDC estimates this growth at about 150% CAGR in the next five years, reaching about $24.6 B by 2024.
Oracle Dedicated Region Cloud@Customer is a fully managed, customizable deployment of Oracle Cloud Infrastructure (OCI) services at the location of the customer’s choice. The customer only pays for the consumption of cloud services at the same rates as OCI’s public cloud regions.
Dedicated Region Cloud@Customer enables the complete set of cloud services and capabilities that the OCI platform provides, not a minimal set of core services. This offering enables customers to run heterogeneous applications including legacy, cloud-native, data analytics, and HPC applications in production, along with greenfield applications. They can also run Oracle Fusion SaaS applications apart from the cloud infrastructure services, enabling them to replace on-premises applications with equivalent SaaS applications.
Dedicated Region Cloud@Customer differentiates itself from the competition through the following capabilities:
Complete set of cloud services: Dedicated Region Cloud@Customer enables the same set of cloud services and capabilities that an OCI cloud region provides, not a minimal set. With the ability to deploy Oracle Fusion SaaS applications and the ability to integrate with Oracle Exadata applications, Dedicated Region Cloud@Customer enables the cloud-based deployment of a heterogeneous mix of workloads in production.
Isolated control plane: Unlike its competition, the control plane is fully contained within the data center where it deploys, keeping customer data internal to the region. So, customers can run air-tight deployments of applications and meet any geopolitical restrictions
Compliance Certifications: Dedicated Region Cloud@Customer is SOC 1, SOC 2, ISO 27001, and ISO 27017 compliant, enabling customers to meet their compliance and regulatory needs
Through its capabilities and differentiators, Dedicated Region Cloud@Customer enables cloud-based deployment of various use cases at the customer’s choice of location. IDC recommends taking a workload-focused approach to selecting the right infrastructure for the right workload. To this paradigm, IDC recommends evaluating the suitability of Oracle Dedicated Region Cloud@Customer for your business needs based on the attributes of your business workloads.
Join Oracle and our guest speaker from IDC to learn how to get the best solution for bringing public cloud services to your data center. Register today for the Oracle Cloud Platform Virtual Summit.