Oracle Expands its Distributed Cloud Capabilities to Help Organizations Innovate with AI

Rhea-AI Summary

Oracle has announced new Oracle Cloud Infrastructure (OCI) distributed cloud innovations to meet the growing global demand for AI and cloud services. Key offerings include:

1. Oracle Database@AWS, @Azure, and @Google Cloud: Enabling direct access to Oracle Database services across major cloud providers.
2. OCI Dedicated Region25: A smaller, scalable configuration starting at three racks, deployable within weeks.
3. OCI Supercluster: The largest AI supercomputer in the cloud, with up to 131,072 NVIDIA Blackwell GPUs.
4. Enhanced OCI Roving Edge Infrastructure: Supporting remote AI inferencing at the edge.
5. New HeatWave capabilities: For generative AI and multicloud applications.
6. OCI Generative AI innovations: Including AI Agents with RAG capabilities.

These innovations aim to provide customers with flexibility, scalability, and advanced AI capabilities across various cloud environments.

Positive

• Expansion of distributed cloud capabilities to meet growing demand for AI and cloud services
• Launch of the largest AI supercomputer in the cloud with OCI Supercluster, offering up to 131,072 NVIDIA Blackwell GPUs
• Introduction of Oracle Database services across major cloud providers (AWS, Azure, Google Cloud)
• New OCI Dedicated Region25 configuration for smaller, scalable deployments
• Enhanced OCI Roving Edge Infrastructure for remote AI inferencing
• New HeatWave capabilities for generative AI and multicloud applications
• Introduction of OCI Generative AI innovations with RAG capabilities

Negative

• None.

Insights

Cloud Computing Analyst

Oracle's expansion of distributed cloud capabilities marks a significant shift in the cloud computing landscape. The introduction of Oracle Database services across AWS, Azure and Google Cloud is a game-changer, offering unprecedented flexibility for enterprises to optimize their multicloud strategies. This move could potentially increase Oracle's market share in the database sector, challenging competitors like Amazon's RDS and Microsoft's SQL Server.

The new OCI Dedicated Region25 configuration is particularly noteworthy. Its smaller footprint and rapid deployment capability could appeal to mid-sized enterprises and organizations in regulated industries, potentially expanding Oracle's customer base. This offering directly competes with AWS Outposts and Azure Stack, but with the added advantage of Oracle's full cloud service portfolio.

Overall, these innovations position Oracle as a more versatile and competitive player in the cloud market, potentially boosting its revenue streams and market valuation in the medium to long term.

AI Infrastructure Specialist

Oracle's announcement of the largest AI supercomputer in the cloud is a bold move that could significantly impact the AI and high-performance computing (HPC) markets. With up to 131,072 NVIDIA Blackwell GPUs delivering 2.4 zettaFLOPS of peak performance, this offering surpasses competitors by a wide margin. This massive computational power could attract large-scale AI research projects and enterprise AI initiatives, potentially driving substantial revenue growth for Oracle's cloud division.

The focus on sovereign AI capabilities is particularly timely, addressing growing concerns about data privacy and national security. By offering NVIDIA L40S GPUs and Hopper architecture GPUs for on-premises deployment, Oracle is positioning itself as a leader in compliant AI infrastructure. This could open up opportunities in highly regulated industries and government sectors, potentially leading to lucrative, long-term contracts.

Financial Analyst

From a financial perspective, Oracle's distributed cloud innovations represent a strategic move to diversify revenue streams and capture a larger share of the rapidly growing cloud and AI markets. The partnerships with AWS, Azure and Google Cloud for Oracle Database services could lead to increased database license revenues and potentially higher margins as Oracle leverages other cloud providers' infrastructure.

The introduction of the OCI Dedicated Region25 and enhanced edge computing capabilities positions Oracle to tap into new market segments, potentially accelerating top-line growth. However, investors should monitor the capital expenditure required for these expansions and their impact on profitability in the short term.

While specific financial projections are not provided, these innovations could positively impact Oracle's cloud revenue growth rate, which has been a key focus for investors. The company's ability to execute on these initiatives and gain market share will be important for long-term value creation.

Latest innovations include Oracle Database@AWS, Oracle Database@Azure, Oracle Database@Google Cloud, OCI Dedicated Region, OCI Supercluster, and OCI Roving Edge Infrastructure 

Oracle Cloud is available in more locations than any other hyperscaler, with many more regions planned

LAS VEGAS, Sept. 11, 2024 /PRNewswire/ -- Oracle CloudWorld -- Oracle today announced new Oracle Cloud Infrastructure (OCI) distributed cloud innovations to help meet the rapidly growing global demand for its AI and cloud services. The latest innovations span Oracle Database@AWS, Oracle Database@Azure, Oracle Database@Google Cloud, OCI Dedicated Region, and OCI Supercluster. With Oracle's distributed cloud, customers can deploy OCI's 150+ AI and cloud services at the edge, in their own datacenter, across clouds, or in the public cloud and can help address a variety of data privacy, sovereign AI, and low latency requirements. In addition, Oracle Cloud is available in more locations than any other hyperscaler, with 85 regions live and 77 planned.

"Our priority is giving customers the choice and flexibility to leverage cloud services in the model that makes the most sense for their business," said Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure. "With OCI's distributed cloud capabilities, we're helping customers deploy a dedicated cloud in a small, scalable footprint, build applications with the best services across cloud providers, and deploy AI infrastructure anywhere they want. This flexibility helps our customers address their unique needs and support their cloud investments in delivering significant business value."

Oracle Offers Largest AI Supercomputer in the Cloud
OCI is now taking orders for the largest AI supercomputer in the cloud – available with up to 131,072 NVIDIA Blackwell GPUs – delivering an unprecedented 2.4 zettaFLOPS of peak performance. The maximum scale of OCI Supercluster offers more than three times as many GPUs as the Frontier supercomputer and more than six times that of other hyperscalers. OCI Supercluster includes OCI Compute Bare Metal, ultra-low latency RoCEv2 with ConnectX-7 NICs and ConnectX-8 SuperNICs or NVIDIA Quantum-2 InfiniBand-based networks, and a choice of HPC storage. To learn more, please visit here.

New OCI AI Infrastructure Enables Training and Inferencing for AI Sovereignty
Oracle and NVIDIA are delivering accelerated computing and generative AI services that help organizations build and maintain sovereign AI models in their country or retain AI-generated data with strong data residency controls.

OCI Compute based on NVIDIA L40S GPUs, NVIDIA Hopper architecture GPUs, and NVIDIA Blackwell platforms are now orderable to support sovereign AI deployments. NVIDIA Omniverse, a platform for developing OpenUSD applications for industrial digitalization and generative physical AI, is validated on OCI and available to support many developer use cases, including sovereign AI.

New OCI Dedicated Region²⁵ configuration brings AI and cloud services to more customers
A new OCI Dedicated Region configuration – Dedicated Region²⁵ – will be available in a smaller, scalable size starting at only three racks and rapidly deployable within weeks. Dedicated Region²⁵ has a 75 percent smaller launch footprint and simplified datacenter requirements, supports OCI's 150+ AI and cloud services and allows a wider range of customers to gain the agility, economics, and scale of the public cloud in their own datacenters. The new configuration will be available in the next calendar year.

Oracle Expands Multicloud Capabilities with Three Groundbreaking Hyperscaler Partnerships
OCI enables customers to combine cloud services from multiple clouds to optimize cost, functionality, and performance. With Oracle Database@AWS, Oracle Database@Azure, and Oracle Database@Google Cloud, customers gain direct access to Oracle Database services running on OCI and deployed directly in the datacenters of the four largest hyperscalers. Through these partnerships, customer have the flexibility to run their applications across clouds and combine all the benefits of Oracle Database services with services from other cloud providers for a seamless multicloud experience. In addition, customer benefit from the simplicity, security, and low latency of a unified operating environment.

In addition, to help customers accelerate AI innovation and leverage cloud services wherever they choose, Oracle has introduced the following distributed cloud innovations:

• OCI Roving Edge Infrastructure enhancements support remote AI inferencing: New versions of the OCI Roving Edge Device, including a new three-GPU option optimized for AI, are now generally available to help customers leverage remote AI inferencing at the edge. This enables customers to manage mission-critical data at the edge and run domain-specific LLMs or computer vision even in remote or disconnected locations. OCI Roving Edge Infrastructure consists of multiple configurations of ruggedized and portable high-performance devices, weighing less than 35 lb. (without the case), equipped with 56 cores (102 virtual CPUs), 512 GB of RAM, and up to 123 TB of storage.
• HeatWave delivers new GenAI and multicloud capabilities: New HeatWave capabilities and innovations help organizations easily and securely take advantage of generative AI both in OCI and Amazon Web Services (AWS). Additional new capabilities help customers quickly and securely implement lakehouse and machine learning applications for a wider variety of use cases, as well as help improve the performance and manageability of transactional applications.
• New OCI Generative AI innovations help customers turn data into a competitive advantage: OCI Generative AI (GenAI) Agents with retrieval-augmented generation (RAG) capabilities and enhanced Oracle AI innovations are now generally available. The new capabilities help customers turn their data into a competitive advantage by making it easier to apply AI to real-world business operations.

Additional Resources

• Learn more about Oracle Cloud Infrastructure
• Learn more about Oracle Database@AWS
• Learn more about Oracle Database@Azure
• Learn more about Oracle Database@Google
• Learn more about OCI Dedicated Region
• Learn more about OCI Supercluster
• Learn more about Oracle Roving Edge Infrastructure

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.

About Oracle CloudWorld
CloudWorld is where our customers and partners can see the latest innovations in cloud technology, discover methods for getting the most business value from AI today, and explore ways to increase productivity and efficiency through automation. You'll learn from experts and your peers who build and use the applications, cloud infrastructure, databases, developer tools, and AI services that help solve complex business challenges in every industry. Join us to develop new skills and see new capabilities in action. Register now at oracle.com/cloudworld or follow the news and conversation at oracle.com/news and https://www.linkedin.com/company/oracle/

Future Product Disclaimer
The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, timing, and pricing of any features or functionality described for Oracle's products may change and remains at the sole discretion of Oracle Corporation.

Forward-Looking Statements Disclaimer
Statements in this article relating to Oracle's future plans, expectations, beliefs, and intentions are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect Oracle's current expectations and actual results, and could cause actual results to differ materially. A discussion of such factors and other risks that affect Oracle's business is contained in Oracle's Securities and Exchange Commission (SEC) filings, including Oracle's most recent reports on Form 10-K and Form 10-Q under the heading "Risk Factors." These filings are available on the SEC's website or on Oracle's website at http://www.oracle.com/investor. All information in this article is current as of September 11, 2024 and Oracle undertakes no duty to update any statement in light of new information or future events.

Trademarks
Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

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SOURCE Oracle

FAQ

What new distributed cloud innovations has Oracle (ORCL) announced?

Oracle has announced several new distributed cloud innovations, including Oracle Database@AWS, @Azure, and @Google Cloud, OCI Dedicated Region25, OCI Supercluster, enhanced OCI Roving Edge Infrastructure, new HeatWave capabilities, and OCI Generative AI innovations.

How many NVIDIA GPUs does Oracle's (ORCL) new AI supercomputer offer?

Oracle's new OCI Supercluster, the largest AI supercomputer in the cloud, offers up to 131,072 NVIDIA Blackwell GPUs, delivering 2.4 zettaFLOPS of peak performance.

What is the new OCI Dedicated Region25 configuration announced by Oracle (ORCL)?

OCI Dedicated Region25 is a new, smaller configuration starting at only three racks, deployable within weeks. It has a 75% smaller launch footprint and supports OCI's 150+ AI and cloud services.

How is Oracle (ORCL) expanding its multicloud capabilities?

Oracle is expanding multicloud capabilities through partnerships with AWS, Azure, and Google Cloud, allowing customers to access Oracle Database services running on OCI directly in these hyperscalers' datacenters.