Oracle Plans to Open Two Public Cloud Regions in Morocco

Rhea-AI Summary

Oracle plans to open two public cloud regions in Morocco, marking its entry as the first hyperscaler in North Africa. These regions, located in Casablanca and Settat, aim to accelerate digital government initiatives and offer local and regional organizations access to Oracle Cloud Infrastructure (OCI). The initiative supports mission-critical workload migrations, regulatory compliance, and innovation through AI, data, and analytics. A Memorandum of Understanding was signed by Moroccan government officials and Oracle leaders during GITEX Africa 2024. The new cloud regions are expected to boost Morocco's digital economy and position it as a key player in the region, providing OCI's full suite of services including AI and database offerings, with advantages such as low latency, redundancy, and disaster recovery capabilities.

Positive

• Oracle will be the first hyperscaler to open public cloud regions in North Africa.
• New cloud regions will support Morocco's digital government initiatives and innovation.
• OCI provides over 100 cloud services, including AI and database capabilities.
• The initiative will help organizations migrate mission-critical workloads and comply with local regulations.
• Low-latency access to cloud services will enhance business continuity and data residency compliance.
• The project positions Morocco as a unique player in the global digital economy.
• OCI's sovereign AI capabilities provide increased control over data and computing infrastructure.
• Oracle's investment highlights confidence in Moroccan talent and expertise.
• The initiative is expected to drive digital transformation for enterprises, startups, and universities.

Negative

• Potential challenges in regulatory compliance and data residency requirements.
• High costs associated with setting up new cloud regions may impact Oracle's short-term financials.
• Uncertain market adoption rates for Oracle's cloud services in the region.
• Possible delays in the construction and operational launch of the new cloud regions.
• Competition from other cloud providers in the African market could limit Oracle's market share.

Insights

Financial Analyst

The announcement of two new Oracle Cloud Regions in Morocco marks a significant strategic move for Oracle. Firstly, it positions Oracle as a first-mover in the North African hyperscale cloud market, which could yield substantial future revenue as more organizations in the region undergo digital transformation. The move aligns with Oracle's global strategy of expanding their cloud footprint while complying with local data residency regulations, which is critical for attracting government and enterprise clients.

From a financial perspective, this expansion can be seen as a long-term growth investment. By establishing a presence in Morocco, Oracle not only taps into the Moroccan market but also positions itself well for the broader African market. This could lead to an increase in customer base and, by extension, a boost in long-term revenues. However, investors should consider the capital expenditure involved in setting up these cloud regions and weigh it against the projected returns. It's also important to monitor how quickly Oracle can realize returns on this investment, considering the competition and adoption rates of cloud services in the region.

Tech Expert

Oracle's decision to open new cloud regions in Morocco underscores its commitment to providing robust cloud infrastructure globally. The two new regions will likely leverage Oracle's advanced cloud technologies such as the Autonomous Database, MySQL HeatWave and Oracle's AI services. This expansion enables high performance, secure and scalable cloud services that can meet the diverse needs of both local and regional clients.

This move is particularly notable given OCI's unique architecture, which allows for rapid deployment and scalability. The inclusion of AI infrastructure is a critical aspect as AI-driven applications become more central to business operations. It gives companies in Morocco and across Africa the tools to innovate and enhance their digital capabilities without having to invest heavily in their own infrastructure.

Moreover, the distributed cloud strategy provides flexibility and control, which is important for clients with stringent data residency and sovereignty requirements. This can be a differentiating factor for Oracle compared to other hyperscalers, potentially capturing a slice of the market that prioritizes these features.

Market Research Analyst

From a market research perspective, Oracle's expansion into Morocco is a strategic play to tap into a burgeoning market. North Africa and Morocco in particular, has shown increasing interest in digital transformation, driven by government initiatives and a growing tech-savvy population. By establishing cloud regions in Casablanca and Settat, Oracle can capitalize on Morocco's central role in African and European markets, leveraging the country's business and cultural connections.

This move also underscores the importance of regional hubs for technology companies looking to expand in Africa. The availability of local cloud infrastructure can significantly reduce latency, improve service quality and enhance customer satisfaction. Oracle's localized approach could also foster partnerships with local startups, universities and enterprises, driving innovation and creating a robust ecosystem around its cloud services.

However, the success of this venture will depend on Oracle's ability to navigate local market dynamics, regulatory landscapes and competition from other global and regional players. It will be interesting to see how Oracle tailors its offerings to meet the specific needs of the market and how quickly it can gain traction against established competitors.

Oracle will be the first hyperscaler to open public cloud regions in North Africa

New public cloud regions will help accelerate the implementation of Morocco's digital government initiatives

Organizations across Africa will be able to drive innovation and accelerate digital transformation with Oracle Cloud Infrastructure's high performance and security, powerful data and AI, and distributed cloud capabilities

AUSTIN, Texas and CASABLANCA, Morocco, May 30, 2024 /PRNewswire/ -- Oracle today announced plans to open two Oracle Cloud Regions in Morocco to offer enterprise cloud services to local and regional organizations across Africa. The upcoming new regions will enable Oracle customers and partners to migrate mission-critical workloads from their data centers to Oracle Cloud Infrastructure (OCI), while helping them comply with local regulations. As a result, customers and partners can access a wide range of cloud services to modernize their applications and innovate with AI, data, and analytics.

The planned public cloud regions in Casablanca and Settat underscore Oracle's commitment to Africa and will help drive the digital transformation of enterprises, startups, universities, and investors in Morocco and across the region.

A Memorandum of Understanding (MoU) to establish the two Oracle Cloud Regions in Morocco was signed by Mr. Mohcine Jazouli, Minister Delegate to the Head of Government in charge of Investment, Convergence, and Evaluation of Public Policies; Ms. Ghita Mezzour, Minister Delegate to the Head of Government in charge of Digital Transition and Administrative Reform; Mr. Ali Seddiki, General Director of the Moroccan Agency for the Development of Investments and Exports (AMDIE); and Oracle leaders during GITEX Africa 2024.

"The opening of Oracle's public cloud in Morocco will accelerate the digital transformation throughout the region," said Ms. Ghita Mezzour, Minister Delegate to the Head of Government in charge of Digital Transition and Administrative Reform. "This strategic expansion, with a hyperscaler like Oracle, positions Morocco as a unique player in the region and allows an even more dynamic development of skills, and growth opportunities."

"As one of the largest economies in Africa, and with strong business and cultural connections with West Africa, Maghreb, and Europe, Morocco offers unique growth opportunities for businesses that are aiming to accelerate their expansion by deploying the latest digital technologies," said Richard Smith, executive vice president, Technology, EMEA, Oracle. "The upcoming Oracle Cloud Regions will offer enterprise-grade cloud capabilities to help organizations quickly deliver new solutions, build resilience, and explore new markets to help accelerate growth. The new regions will also serve as the foundation for the Moroccan government's modernization of its public services to better serve its people."

"We warmly welcome Oracle's investment in Moroccan soil, emphasizing a strong confidence in the Moroccan youth's expertise and talent. This initiative underscores our commitment to fostering technological advancement within our nation. Furthermore, it positions Morocco prominently on the international digital stage, showcasing our capabilities and readiness to lead in the global digital economy," said Mr. Mohcine Jazouli, Minister Delegate to the Head of Government in charge of Investment, Convergence, and Evaluation of Public Policies.

OCI Provides Customers with Latest AI Infrastructure Offerings and a Resilient and Scalable Cloud Foundation

Oracle is the only hyperscaler capable of delivering AI and a full suite of 100+ cloud services across dedicated, public, and hybrid cloud environments, anywhere in the world. Part of Oracle's distributed cloud strategy, the planned regions will offer OCI's full suite of services. This includes Oracle Autonomous Database, MySQL HeatWave Database Service, Oracle Container Engine for Kubernetes, Oracle Cloud VMware Solution, OCI Generative AI service, and OCI AI Infrastructure. OCI's unique cloud architecture enables Oracle to deploy dedicated cloud regions with hyperscale cloud services inside customer data centers and deploy more public cloud regions faster by starting with an optimal footprint and scaling as needed. This approach helps meet the needs of all countries and markets without compromising cloud capabilities, while also providing the consistent performance, SLAs, and global pricing for which OCI has become known.

With the planned regions in Morocco, customers and partners can gain low-latency access to cloud services to help them derive better value from their data. Customers can also leverage redundancy and disaster recovery capabilities to enhance business continuity and help address Morocco's regulations and requirements for data residency. In addition, OCI's sovereign AI capabilities provide customers with increased control over where they locate their data and computing infrastructure and how they manage it. As a result, customers can achieve AI sovereignty by gaining the assurance that their use of AI is aligned with digital sovereignty frameworks.

Oracle's Distributed Cloud Delivers the Benefits of Cloud with Greater Control and Flexibility

OCI's distributed cloud lineup includes:

• Dedicated cloud: Customers can run all OCI cloud services in their own data centers with OCI Dedicated Region, while partners can resell OCI cloud services and customize the experience using Oracle Alloy. Oracle also operates separate U.S., UK, and Australian Government Clouds, and Isolated Cloud Regions for U.S. national security purposes. Each of these products provide a full cloud and AI stack that customers can deploy as a Sovereign Cloud.
• Hybrid cloud: OCI delivers key cloud services on-premises via Oracle Exadata Cloud@Customer and Compute Cloud@Customer and is already managing deployments in over 60 countries.
• Public cloud: Hyperscale public cloud regions serve any size of organization, including those requiring strict EU sovereignty controls. See the full list of regions here.
• Multicloud: Options including Oracle Database@Azure, MySQL HeatWave on AWS and Microsoft Azure, and Oracle Interconnect for Microsoft Azure allow customers to combine key capabilities from across clouds.

Additional Resources

• Learn more about the Oracle Cloud Regions
• Learn more about Oracle Cloud 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.

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 is Oracle planning to do in Morocco?

Oracle plans to open two public cloud regions in Casablanca and Settat, Morocco.

When was the announcement made about Oracle's new cloud regions in Morocco?

The announcement was made on May 30, 2024.

Why is Oracle opening cloud regions in Morocco?

Oracle aims to accelerate digital government initiatives and support regional organizations' digital transformation efforts.

What services will the new Oracle Cloud Regions in Morocco offer?

The new regions will offer Oracle Cloud Infrastructure's full suite of services, including AI, data, and analytics capabilities.

How will Oracle's new cloud regions affect Moroccan businesses?

The regions will help businesses migrate workloads to the cloud, comply with local regulations, and drive innovation.

What is the significance of the Memorandum of Understanding (MoU) signed during GITEX Africa 2024?

The MoU signifies a collaborative effort between Oracle and Moroccan government officials to establish the new cloud regions.

What are the expected benefits of Oracle's cloud regions for Morocco?

The cloud regions are expected to boost the digital economy, provide advanced cloud services, and enhance business continuity through low-latency access and disaster recovery capabilities.

What is the stock symbol for Oracle?

The stock symbol for Oracle is ORCL.