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Oracle To Use Its Geographical Reach To Rival Amazon, Microsoft In Cloud Computing

Oracle To Use Its Geographical Reach To Rival Amazon, Microsoft In Cloud Computing
The global cloud computing industry segment is turning out to be a hardly fought turf, a Oracle Inc now gets ready to offer competition to the market leaders and Microsoft Corp. Oracle said that it aims to set up new cloud computing data centers by the end of 2020 and the company has already constructed such centers in five countries.
Its second generation of cloud systems, which are used by the longtime business software provider to operate data centres and renting out the capacity to customers, was rolled out after the company did not manage to make a mark it wanted the first time.  
According to Forrester Research, the market leaders in this segment are Amazon Web Services and Microsoft who together have command control over more than two thirds of the global market as of 2019. The winning strategy of Oracle seems to be alluring customers by using its global reach.
Many companies and business are now required to retain data gain the country from where it had gathered it as dictated by new data privacy regulations in the European Union and elsewhere, said Clay Magouyrk, the executive vice president of engineering in Oracle’s cloud unit, and added that these new rules made it imperative that the company sets up data centers in as many countries as possible.
He said that the company aims to create at least two separate regions in every country it operates its data centres so that customers can have a primary region as well as a backup system in the case of a disaster.
“Overall, the strategy is to put lots of regions around the world to give customers data sovereignty,” he said.
There can be multiple data centres in physically separate locations within a “region: which are called “availability” zones or domains even though a different terminology is used to promote their own business be each cloud vendor. For example, there are 56 regions for Microsoft while Amazon has 22 regions but has 69 availability zones.
Regions in Jeddah, Saudi Arabia; Osaka, Japan; Melbourne, Australia; Montreal, Canada; and Amsterdam in the Netherlands, were added by Oracle on Monday.
There are plans of the company to add two regions in the United Arab Emirates while adding another region in Saudi Arabia this year.
While not giving any details, Oracle said the 10 largest businesses in Japan were using its cloud computing services.
The competitors of Oracle in the cloud computing space have deep pockets and are therefore continuing to add more data centers. For example, plans for adding five more regions and 16 availability zones have been announced by Amazon.
But given Oracle’s customer base of large businesses, Oracle has set a solid strategy by aiming to win customers on the basis of its geographical reach given the new data regulations. “Oracle’s taken a bad rap over the last couple years, but I think some of that has been them taking the time to get the ship righted,” he said. “There’s a lot they need to do - the leaders are still innovating - but I think they’ve shown that from a first step perspective, they are definitely on the right path.”

Christopher J. Mitchell

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