Oracle introduces smaller cloud infrastructure option for data centers

LAS VEGAS - Oracle, whose stock has surged over 129% in the past six months and commands a market capitalization of $878 billion, announced the availability of Oracle Cloud Infrastructure (OCI) Dedicated Region25 on Tuesday, a new offering that delivers OCI’s cloud services directly into customer data centers with a reduced physical footprint starting at just three racks.

The new deployment option allows organizations to rapidly implement full-stack OCI in a Dedicated Region within weeks, even in space-constrained environments. It provides access to over 200 AI and cloud services while meeting data sovereignty requirements. According to InvestingPro, Oracle maintains a strong position in the software industry, with revenue growing nearly 10% over the last twelve months, though current market valuations suggest the stock is trading above its Fair Value.

"With OCI Dedicated Region25, we’re bringing the full power of Oracle Cloud to virtually any data center," said Scott Twaddle, senior vice president of Product and Industries at Oracle Cloud Infrastructure, according to a company press release.

The solution is part of Oracle’s distributed cloud portfolio and enables customers to scale from a minimal three-rack configuration to hyperscale without downtime or re-architecting. It features hyperconverged infrastructure that requires less data center space and power through high-density compute and storage racks.

Kazushi Koga, corporate executive officer at Fujitsu Limited, noted that the smaller footprint will allow his company to "deploy apps and services quickly and easily to our customers while benefiting from the flexibility to expand our deployment without downtime."

Since introducing OCI Dedicated Region in 2020, Oracle has evolved the offering from a large, hyperscale form factor to a more flexible footprint. The company reports more than 60 OCI Dedicated Regions and Oracle Alloy regions are live or planned globally.

OCI Dedicated Region25 includes integrated multi-layered security features, full public cloud parity, support for sovereign requirements, and is fully managed by Oracle as a cloud-operated service.

The announcement was made at Oracle AI World in Las Vegas.

In other recent news, Oracle unveiled its Autonomous AI Lakehouse, combining Oracle Autonomous AI Database with Apache Iceberg. This new platform is designed to work across multiple cloud environments, including Oracle Cloud Infrastructure, AWS, Microsoft Azure, Google Cloud, and Exadata Cloud@Customer. Additionally, Oracle launched its AI Factory, offering support services to facilitate the adoption of artificial intelligence solutions for customers and partners. The AI Factory aims to streamline the deployment of AI agents and accelerate the adoption of embedded AI across Oracle’s cloud applications.

Fitch Ratings has affirmed Oracle Corporation’s Long-Term Issuer Default Rating at ’BBB’ with a Stable outlook, acknowledging the company’s significant investments in AI compute infrastructure. These investments are linked to multi-year commercial contracts with major customers such as OpenAI, xAI, and Meta. Oracle has also partnered with Duality Technologies to offer a secure data collaboration platform on Oracle Cloud Marketplace. This collaboration provides government, defense, and intelligence customers with tools for encrypted data collaboration while maintaining confidentiality.

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