Oracle today said it will open 12 new cloud data center regions across Asia, Europe, and the Americas, bringing its total to 16. This will include locations in China, India, Japan, Saudi Arabia, Singapore, South Korea, the Netherlands, and Switzerland, as well as two in Canada and two in the U.S. to support Department of Defense workloads.
The new U.S., Canada, and Japan cloud data centers will come online later this year, said Kash Iftikhar, vice president for Oracle’s infrastructure-as-a-service (IaaS), on a call with reporters. The others will open over the next two years.
Iftikhar wouldn’t say how much Oracle plans to spend on the new cloud data centers, but The Wall Street Journal puts the price tag at “several hundred-million dollars.”
Oracle claims it has cloud services customers in more than 195 countries.
Oracle needs to grow its cloud footprint if it wants to compete against the big three cloud providers: Amazon Web Services (AWS), Microsoft Azure, and Google. And its data center expansion announcement comes as those vendors and China-based Alibaba are aggressively growing their market shares at the expense of smaller cloud providers.
Fourth-quarter 2017 data from Synergy Research Group showed spending on cloud infrastructure services in the last quarter of 2017 jumped 46 percent from the final quarter of 2016.
A separate report published today by Dell’Oro Group found that the top three Chinese cloud service providers – Alibaba, Tencent, and Baidu – are forecast to outpace the top four U.S. cloud providers – Google, Amazon, Microsoft, and Facebook – in server growth by 2022.
For Oracle, this means its path to cloud domination will likely be stormy.
The company saw total cloud revenues grow 44 percent to $1.5 billion in its most recent quarterly earnings. But this wasn’t as strong as investors had hoped, and Oracle’s stock took a hit following the earnings report.
New PaaS Autonomous Capabilities
Oracle also announced it is expanding autonomous technology across its cloud platform-as-a-service (PaaS) product line by the end of the year.
Oracle launched its autonomous “self-diving” database in October 2017. The database uses machine learning and artificial intelligence (AI) to automatically tune, patch, and upgrade itself while the system is running.
These AI and machine learning capabilities will be extend to all Oracle PaaS products. In addition to automated backups and patching, the company said it is adding autonomous capabilities specific to application development, mobile and bots, app and data integration, analytics, security, and management.