Global Organizations Boost Growth with Oracle Cloud VMware Solution

Rhea-AI Summary

Global companies like Ahold Delhaize, Hitachi Construction Machinery, Lemtrans, and Mazda Motors Logistics Europe N.V. have adopted Oracle Cloud VMware Solution to migrate critical applications from on-premises data centers to Oracle Cloud Infrastructure (OCI).

This migration enhances performance, cuts costs, and modernizes operations while retaining full control over VMware environments. Oracle's new OCI Compute shape integrates NVIDIA A10 Tensor Core GPU and Intel® Xeon® Platinum 8358 Processor, with plans for AMD EPYC™ 9J14 processors, offering improved performance for diverse workloads.

Notable results include Ahold Delhaize's zero data center footprint, Hitachi's 20% cost reduction and performance boosts, Lemtrans' increased system resiliency, and Mazda Motors Logistics Europe's consolidated data operations in OCI. Oracle Cloud VMware Solution provides scalable, high-performance, and secure cloud infrastructure, maintaining VMware's tools and processes, ensuring seamless transitions with no need for re-skilling.

Positive

• Ahold Delhaize eliminated its remaining data center footprint, cutting costs.
• Hitachi Construction Machinery reduced infrastructure costs by 20% and improved processing performance by up to 60%.
• Lemtrans improved resiliency for critical railway systems by migrating to cloud.
• Mazda Motors Logistics Europe N.V. consolidated operations, closing two data centers and reducing costs.
• Introduction of new OCI Compute shapes with NVIDIA, Intel, and AMD processors offers enhanced performance and scalability.

Negative

• None.

Insights

Financial Analyst

Oracle's announcement highlights its ability to attract major global organizations, like Ahold Delhaize, Hitachi Construction Machinery, Lemtrans and Mazda Motors Logistics Europe N.V., by offering the Oracle Cloud VMware Solution. This move strategically positions Oracle within the cloud market by leveraging its already robust infrastructure and extending it with specialized hardware capabilities such as the NVIDIA A10 Tensor Core GPU and AMD EPYC™ 9J14 processor.

From a financial perspective, the decision to migrate to Oracle Cloud could result in cost savings for these companies, particularly in infrastructure and operational efficiencies. For instance, Hitachi Construction Machinery reported a 20% reduction in operating costs and significant improvements in performance metrics. Such tangible benefits could enhance Oracle's customer retention and attract new clients, which would potentially increase its revenue streams.

Additionally, Oracle's focus on providing a seamless transition from on-premises VMware environments to the cloud without requiring reskilling or significant changes to existing infrastructures could lower barriers to entry for potential clients. This strategic approach could lead to increased adoption rates, thus benefiting Oracle's market share in the cloud services sector. Long-term, this could strengthen Oracle's competitive position against other cloud providers like AWS and Microsoft Azure.

Given these factors, retail investors might view this development positively, as it speaks to Oracle's ongoing innovation and adaptability in a rapidly evolving market.

Tech Expert

The integration of advanced hardware, such as the NVIDIA A10 Tensor Core GPU and the upcoming AMD EPYC™ 9J14 processor, reflects Oracle's commitment to enhancing the performance and scalability of its cloud services. The NVIDIA A10 Tensor Core GPU, for instance, is particularly beneficial for AI, machine learning and graphic-intensive workloads. This means companies can leverage sophisticated data processing capabilities directly within their cloud environments, facilitating advancements in areas such as predictive analytics and AI-driven decision-making.

Moreover, the inclusion of Intel® Xeon® Platinum 8358 Processor and the upcoming AMD processors introduces flexible compute options that can accommodate a wide range of workloads. This versatility can be important for enterprises that need to manage diverse and demanding applications. The emphasis on maintaining full administrative control over VMware environments in the cloud is another significant aspect. This allows companies to retain their existing IT processes and expertise, ensuring a smooth and familiar operational shift, rather than a disruptive overhaul.

These technological advancements underscore Oracle's strategy to offer high-performance, scalable and secure cloud solutions. For companies, this means better performance and potentially lower costs, as they can avoid the complexity and expense associated with complete infrastructure overhauls.

Market Research Analyst

From a market perspective, the shift of major players like Ahold Delhaize, Hitachi Construction Machinery, Lemtrans and Mazda Motors Logistics Europe N.V. to Oracle Cloud VMware Solution signifies a broader trend towards cloud migration. The cloud market is increasingly competitive with major players such as AWS, Microsoft Azure and Google Cloud. Oracle's ability to secure these high-profile clients is noteworthy and indicates its growing influence within the industry.

The decision of these companies to utilize Oracle's solution can be attributed to the distinct advantage Oracle offers—an easier transition for VMware environments and enhanced performance without needing significant changes in infrastructure. This approach mitigates risks associated with cloud migration and reduces the learning curve for enterprises, making it an attractive proposition.

Furthermore, Oracle's claim of the industry's lowest data egress prices and consistent low pricing across regions could attract cost-conscious businesses looking for predictable expense models. As cloud adoption continues to accelerate, Oracle's strategic positioning and unique value propositions could translate into increased market penetration and customer loyalty.

Retail investors might find Oracle's expanding footprint in the cloud market promising, as it suggests potential for growth and resilience in a competitive landscape.

Ahold Delhaize, Hitachi Construction Machinery, Lemtrans, and Mazda Motors Logistics Europe N.V. move their business-critical VMware environments to Oracle Cloud VMware Solution 

Latest OCI Compute with AMD, Intel, and NVIDIA processors give Oracle Cloud VMware Solution customers greater scale, performance, and address new use cases like virtual desktops and AI and ML

AUSTIN, Texas, July 10, 2024 /PRNewswire/ -- Global organizations across industries including Ahold Delhaize, Hitachi Construction Machinery, Lemtrans, and Mazda Motors Logistics Europe N.V. use Oracle Cloud VMware Solution to exit their on-premises data centers and migrate their business-critical applications to Oracle Cloud Infrastructure (OCI). To continue to add new capabilities to this service, Oracle released a new OCI Compute shape with an NVIDIA A10 Tensor Core GPU and an Intel® Xeon® Platinum 8358 Processor for Oracle Cloud VMware Solution, and plans to release another shape based on the AMD EPYC™ 9J14 processor. This will provide customers with additional compute options and improved performance across a wide range of workloads.

"Many organizations that want to move their VMware estates to the cloud are often daunted by the heavy lift and prospect of needing to learn an entirely new set of IT skills," said Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure. "Oracle Cloud VMware Solution enables organizations to maintain full control of their VMware Clusters and preserve their tools, skills, and processes, eliminating reskilling requirements. For customers, it is a low-risk approach to modernize in the cloud by maintaining an identical operational model to their on-premises VMware Clusters."

Ahold Delhaize Accelerates Cloud Migration to Keep Pace with Retail Growth

Ahold Delhaize is one of the largest food retailers in the world, with 16 regional brands, 7,700 stores, and more than 400,000 employees. Ahold Delhaize has been operating its on-premises VMware environment for many years, alongside other diverse IT systems and solutions to support its operations. After running Oracle and non-Oracle applications for critical business processes on VMware, it decided to accelerate the migration to the cloud to increase performance and help cut costs. Starting with its key local brands in the Netherlands, Albert Heijn, Etos, and Gall & Gall, Ahold Delhaize leveraged Oracle Cloud VMware Solution to migrate over 400 VMware virtual machines (VMs) supporting its e-commerce, supply chain, and retail processes, to Oracle Cloud VMware Solution. This allowed Ahold Delhaize to reduce its remaining data center footprint to zero while maintaining full administrative control over its VMware environment. The roll-out was managed and implemented by the AH Tech Team and Oracle partner DXC Technology, a member of Oracle PartnerNetwork.

"After a review process, Oracle Cloud VMware Solution was the choice for us," said Gerhard van der Bijl, chief technical officer, Ahold Delhaize Europe & Indonesia. "It allowed us to extend our data center VMware environment into the cloud and leverage our existing processes and expertise, while delivering on our data center exit strategy. One of the most important reasons for us to choose Oracle is that we could lift and shift our workloads without having to make impactful changes to the underlying infrastructure, which allowed our business to continue to operate while we migrated workloads overnight."

Hitachi Construction Machinery Accelerates Digital Transformation

Hitachi Construction Machinery develops, manufactures, sells, rents, and services hydraulic excavators, wheel loaders, road equipment, and mining equipment, with more than 400,000 units of construction equipment in operation worldwide. To drive its digital transformation strategy, it is migrating approximately 500 virtual servers from an on-premises VMware virtualization environment and 100 databases to Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI. Hitachi Construction Machinery has already reduced its infrastructure operating costs by 20 percent while improving its online transaction processing performance by 50 percent and batching processing by 60 percent.

"OCI is the only public cloud that can securely migrate mission-critical databases running on Oracle Exadata and VMware virtualization environments since we can migrate quickly without configuration changes and reduce costs. Other clouds would have increased our costs due to having to rebuild applications," said Noriko Momoki, senior officer and president, DX Promotion Group, Hitachi Construction Machinery. "The increased performance has significantly improved business processing time while reducing operational and management tasks, meaning our IT department can now focus on new projects to strengthen our business competitiveness."

Lemtrans Improves Resiliency for Critical Railway Systems

Lemtrans is a leading private operator of railway vehicles in the Ukraine, operating more than 15,000 gondola cars that transport over 52 million tons of cargo annually. Lemtrans had an urgent need to transition critical processes and databases, including train scheduling and identity and access management, to the cloud. Lemtrans relied on Oracle Cloud VMware Solution to quickly relocate its data and applications outside of the Ukraine, achieving greater resiliency while preserving its IT investments.

"Oracle Cloud VMware Solution was the perfect choice for us to ensure that our business would not be disrupted," said Ivan Radchenko, head of IT department, Lemtrans. "The tools we use in OCI and our on-premises VMware environment are identical, which greatly simplified the migration of our data and VMs and provided more confidence in our business continuity. This helps us maintain the highest standard of quality for the Ukraine's rail system."

Mazda Motors Logistics Europe N.V. Consolidates Applications to Reduce Data Center Footprint

Mazda Motors Logistics Europe N.V. (MLE) is responsible for distributing cars and parts to European customers. MLE delivers spare parts directly to over 2,300 dealers and independent distributors in more than 30 European countries and vehicles to the ports of Barcelona, Antwerp, and Zeebrugge for European distribution. To achieve its goal of phasing out its data centers and modernizing its operations, MLE migrated 500 VMware VMs and consolidated an Oracle Exadata system into 80 Oracle Databases running on Exadata Database Service in OCI. MLE also consolidated its business-critical applications into several software-defined data centers (SDDCs) with 12 hosts on Oracle Cloud VMware Solution. As a result, MLE closed its two data centers in Frankfurt while maintaining the same high level of application customization and database compatibility.

"As a long-standing customer of both VMware and Oracle, it was important for us to maintain the operation and management of our virtual infrastructure as closely as possible," said Leander Dierckx, cloud domain lead, Mazda Motors Logistics Europe N.V. "Migrating our racks of Exadata and VMs to OCI let us keep our data and workloads in one place. This had helped us increase our agility and productivity while reducing operational costs."

Oracle Cloud VMware Solution Introduces New Compute Shapes for Greater Customer Control 

Oracle released a new Oracle Cloud VMware Solution compute shape with an Intel® Xeon® Platinum 8358 Processor and an NVIDIA Tensor Core A10 GPU to run VDI, AI inferencing, and graphic-intensive workloads on VMware this month. Oracle VMware Cloud Solution plans to also introduce a new compute shape using the AMD EPYC™ 9J14 processor, which can allow up to 50 percent more cores per cluster and bring the latest generation AMD processors to customers running VMware, later this year.

Oracle Cloud VMware Solution is designed for organizations requiring the highest levels of scalability, performance, security, and control. Customers can directly manage cloud infrastructure and VMware consoles for complete administrative control of their entire VMware stack. This enables organizations to rapidly migrate on-premises VMware estates to the cloud, while preserving existing skills, best practices, and tools.

VMware environments operate in isolated customer tenancies at the highest levels of security, including FedRAMP High, to help meet compliance requirements. In addition, Oracle Cloud VMware Solution delivers enterprise-level performance along with predictable costs, including the industry's lowest data egress prices, and consistent low pricing across Oracle Cloud regions. With Oracle Cloud VMware Solution, customers gain OCI's flexible cloud infrastructure and zero-trust security, while retaining the full VMware administrator experience and control. Oracle Cloud VMware Solution SDDCs are deployed on OCI bare metal compute instances, a simple, consistent approach compared to solutions that use separate compute instances just for VMware. Oracle Cloud VMware Solution is available across public, government, sovereign, or even dedicated cloud environments, anywhere in the world.

Additional Resources

• Learn more about Oracle Cloud VMware Solution
• Learn more about Oracle Cloud Infrastructure
• Read more about Oracle Exadata Database Service

About Oracle

Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com. 

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SOURCE Oracle

FAQ

Which global organizations have adopted Oracle Cloud VMware Solution?

Ahold Delhaize, Hitachi Construction Machinery, Lemtrans, and Mazda Motors Logistics Europe N.V. are among the notable global organizations using Oracle Cloud VMware Solution.

How does Oracle Cloud VMware Solution benefit Ahold Delhaize?

Ahold Delhaize benefits from reduced data center footprint, increased performance, and cost reductions by migrating over 400 VMware virtual machines to Oracle Cloud VMware Solution.

What performance improvements did Hitachi Construction Machinery achieve with Oracle Cloud VMware Solution?

Hitachi Construction Machinery experienced a 20% reduction in infrastructure operating costs, a 50% improvement in online transaction processing performance, and a 60% increase in batch processing performance.

How did Lemtrans improve its railway system resiliency with Oracle Cloud VMware Solution?

Lemtrans transitioned critical processes and databases to Oracle Cloud VMware Solution, enhancing system resiliency and maintaining business continuity amidst geopolitical challenges.

What was the impact of migrating to Oracle Cloud VMware Solution for Mazda Motors Logistics Europe N.V.?

Mazda Motors Logistics Europe N.V. consolidated its business-critical applications, closed two data centers in Frankfurt, and reduced operational costs while maintaining application customization and database compatibility.

What new compute shapes are available on Oracle Cloud VMware Solution?

Oracle introduced a new compute shape with NVIDIA A10 Tensor Core GPU and Intel® Xeon® Platinum 8358 Processor, with plans for another shape using AMD EPYC™ 9J14 processors.