Global industry analyst views on Oracle Compute Cloud@Customer

August 9, 2023 | 6 minute read
Michael Brown
Senior Director, Product Marketing, Oracle
Text Size 100%:

Today, Oracle announced Oracle Compute Cloud@Customer, the latest member of our distributed cloud portfolio. This new rack-scale cloud platform lets you run applications and middleware using Oracle Cloud Infrastructure (OCI) compute, storage, and networking services your data center or distributed cloud locations while meeting your business needs for data residency and low-latency connectivity. When combined with Compute Cloud@Customer’s affordable subscription rates and consumption-based service pricing, you’ll find that it’s extremely affordable to run Oracle’s distributed cloud in your data center.

What people are saying

Leading industry analysts had the following remarks on today’s news:

Ron Westfall, research director of the Futurum Group:

“For organizations looking to deploy cloud services on-premises, the message is ‘go big or go home,’ So many on-premises cloud services are either warmed-over hardware boxes gift wrapped with financial engineering tools, or I see them offering one-tenth the capabilities of their public cloud counterparts. Oracle’s latest Compute Cloud@Customer offering clearly bucks this trend and delivers the same compute, storage, networking, APIs, control plane and a growing list of services that are also available in OCI. It’s part of the company’s strategic distributed cloud strategy and, as such, is a full-blown cloud experience on-premises, not a litmus test like other cloud vendors are peddling.”

Dave McCarthy, research vice president of cloud and edge infrastructure services:

“Having addressed the Oracle Database space with Oracle Exadata Cloud@Customer, Oracle now completes the puzzle with a complementary offering, Compute Cloud@Customer. It enables customers to run middleware and applications in their data centers or develop and run cloud native applications anywhere. Compute Cloud@Customer also delivers the same OCI public cloud services, at the same price with a pay-for-what-you-use-model. This innovative cloud offering should be well received, not only by Oracle’s customer base, especially Exadata Cloud@Customer users, but also by anyone whose applications require low latencies, need to meet data residency requirements, or could use a high performance, scalable distributed cloud solution.”

Marc Staimer, senior analyst at Wikibon:

“Oracle’s new Compute Cloud@Customer just unlocked the magic of Oracle Cloud Infrastructure (OCI) for most customer premises. Unlike previous efforts such as AWS Outposts, Azure Stack, and Google Distributed Cloud Edge, Cloud Compute@Customer delivers a much more complete and balanced customer on-premises cloud experience in performance, scalability, flexibility, and affordability. It’s currently ideal for the application tier and when combined with the unprecedented high performance Exadata Cloud@Customer database tier, delivers the experience customers have been seeking.”

Bradley Shimmin, chief analyst of AI and data analytics at Omdia:

“Oracle Compute Cloud@Customer provides a true OCI experience on a customer’s premises, bringing the best of OCI to organizations that can’t move certain application workloads to the public cloud. When combined with Exadata Cloud@Customer for Oracle Database workloads, the combination of these two on-premises cloud services raises the bar for what is possible, giving customers a true choice as to where they want their cloud services delivered and how they want to consume them. This mantra is embodied in Compute Cloud@Customer and raises the profile of OCI while further elevating Oracle’s distributed cloud solutions to a highly differentiated position in a market clamoring for deployment flexibility without complexity. Given this solid foundation, it’s likely that Oracle will introduce more services on Compute Cloud@Customer soon, which can enable the company to rapidly embrace evolving market app delivery trends.”

Steve McDowell, principal analyst and founding partner of NAND Research:

“Oracle’s Distributed Cloud strategy transcends the boundaries of what other cloud providers are doing today. It starts with the superset, Dedicated Region, which offers all OCI services anywhere in the world that a customer wants to consume them. It extends to Exadata Cloud@Customer, which is specifically architected for all OCI Oracle Database cloud services. Now, we have the new Compute Cloud@Customer, which delivers OCI compute anywhere and is ideal for application and middleware workloads. Factor in the availability of services in other clouds, and you have the most accessible cloud services for organizations of all sizes. Add in the same pricing in OCI and for on-premises cloud offerings, and Compute Cloud@Customer is just the latest example of Oracle making it easier for organizations to adopt cloud as part of their business transformation strategies.”

Matt Kimball, Vice President & Principal Analyst, Datacenter Compute, Moor Insights & Strategy:

“The modern enterprise requires agility, choice, performance and security to drive the distributed, data-driven environments that drive the business. Compromise on any of these vectors results in compromise in every vector. As a former IT leader these were my design points when it came to architecting a business-critical environment. With Oracle Cloud’s Compute Cloud@Customer, these requirements can be met, providing organizations choice of location regarding compute, network and storage services deployed; the flexibility of identical pricing no matter where they deploy it; and the peace of mind knowing that anything they develop and deploy on Compute Cloud@Customer will run flawlessly on OCI. This is another example of Oracle’s distributed cloud strategy putting customer priorities first.”

Tony Baer, principal at dbInsight:

“Most hybrid cloud offerings designed for operation in the customer’s data center are incomplete. Few offer the full hyperscaler, managed as-a-service experience on infrastructure running inside the customer’s data center. Oracle’s Cloud@Customer brings to the data center the same fully managed experience on-premises of the OCI public cloud. Compute Cloud@Customer adds the missing link in the OCI distributed cloud portfolio by providing the app and middleware piece, complementing Oracle’s existing Exadata Cloud@Customer and Dedicated Regions. Oracle is delivering Compute Cloud@Customer with the same flexibility of the Exadata offering, allowing the customer to have it their way with just the right mix of compute and storage for their needs.”

Holger Mueller, vice president and principal analyst at Constellation Research:

“Identicality is key to success for next generation computing platforms, as enterprises need to move their code assets between public, distributed cloud, on-premises and to the edge. Oracle offerings in the space—Oracle Exadata, Oracle Exadata Cloud@Customer, Oracle Dedicated Region and now Oracle Compute@Customer—have the highest identicality in the industry, based on Oracle’s Distributed Cloud strategy. With the identical APIs and development tools across cloud environments, identicality means that customers can develop cloud native applications and run them anywhere—OCI public cloud, OCI Dedicated Region, and now Compute Cloud@Customer, the latest instantiation of this strategy. It enables customers to run middleware and applications at high performance and availability in their data centers. Constellation Research previously designated Exadata Cloud@Customer as having the highest identicality of the next-generation computing platforms reviewed and now Compute Cloud@Customer joins that elite category.”

Alexei Balaganski, lead analyst and CTO at KuppingerCole Analysts:

“Compute Cloud@Customer is the latest showcase of Oracle’s diverse cloud strategy. As advertised, it delivers compute services on customers’ premises fully compatible with OCI services and even at the same price, while fulfilling the strictest data residency requirements. However, from KuppingerCole’s perspective, it’s the direct integration with Oracle Exadata Cloud@Customer that needs highlighting. This pairing of Compute Cloud@Customer running applications and middleware with database services running on Exadata Cloud@Customer creates a unique combination, which not only delivers high performance at the lowest latency, but also provides an extremely secure, integrated environment with a drastically reduced attack surface area compared to other approaches, further highlighting Oracle’s security-first philosophy. This pairing should appeal to Oracle’s enterprise customers that run mission-critical applications, especially in highly regulated verticals.”

David Floyer, former CTO and co-founder of Wikibon:

“Future enterprise systems require multifaceted AI for real-time automation and optimization of distributed business processes. Similarly, the cloud infrastructure supporting these systems must have built-in real-time automation and optimization capabilities, Oracle alone provides a fully automated cloud infrastructure that can be deployed on-premises, at the edge, in OCI, and other platforms like Microsoft Azure. With the introduction of modern general-purpose Compute Cloud@Customer and ultra-low latency Oracle Exadata, Oracle offers a unique, globally distributed Supercloud. This allows unprecedented flexibility in data processing locations, all at unmatched price points and efficiency. Wikibon sees the distributed Oracle Supercloud as the go-to foundation for real-time business automation across businesses of all sizes.”

Steven Dickens, vice president and practice leader at the Futurum Group:

“There are various degrees of distributed cloud solutions. Distributed cloud solutions come in various degrees, offering different approaches to meet business needs. Some solutions in the market are represented as cloud-based but are essentially hardware products with creative financing structures built around them. There are also cases where cloud providers have made less enthusiastic efforts, not truly resembling their public cloud offerings. Then there’s Oracle’s latest Distributed Cloud offering, Compute Cloud@Customer, which puts distributed cloud on a whole new trajectory. With up to four times the cores, twice the virtual machines, eight times the capacity of many of its principal competitors, and crucially both architectural and pricing equivalence with OCI, Compute Cloud@Customer is a game changer and sets the new standard for distributed cloud in the industry.”

Want to know more?

For more information on Oracle Compute Cloud@Customer, see the following resources:

Michael Brown

Senior Director, Product Marketing, Oracle

Michael joined Oracle in 2010 and is responsible for product marketing for Oracle's storage systems including Oracle's Recovery Appliance, Oracle ZFS Storage Appliance, and StorageTek tape automation solutions. He is a thirty year industry veteran who has successfully led product marketing teams for storage, systems, graphics workstations, software, and high-performance computing as well as industry marketing teams in both headquarters and European organizations. Michael holds an MBA from Wharton, an MSEE from University of Illinois Champaign-Urbana, and both a BS in Engineering and BA in Philosophy from Swarthmore College.

Previous Post

Announcing the availability of OCI Connector Hub service logs

Yash Kumar | 6 min read

Next Post

Decoding transcoding costs in the cloud

Sathya Velir | 11 min read