News & Analysis

Oracle aims to Expand Its Cloud Infrastructure User Base via Price Cuts

The OCI Dedicated Region minimum commitment has been dropped from $6 million per annum over a 3-year period to just $1 million a year

Oracle, which recently reported a Q4 revenue spike, is now doing its bit to enhance the user base of its cloud infrastructure. As part of this effort, the company has reduced the entry price for the Oracle Cloud Infrastructure (OCI) Dedicated Region to just $1 million a year. 

The service, which offers a bouquet of public cloud services alongside Oracle Fusion SaaS applications, hitherto required a minimum commitment of $6 million a year over a three-year consumption period. By reducing the upfront cost, Oracle will now aim to reach more companies across a broader set of  industry verticals. 

Readers would recall that the OCI Dedicated Region began as a service that allowed businesses to shift on to cloud computing within their data centers even while complying with the regulatory guidelines around data storage. Oracle said the enterprises would require between 60-75% less data center space and power in the new offering.  

Industry experts believe that Oracle could now approach a substantially wider market for customers on the OCI, especially those requiring much smaller data center footprints. In other words, the company’s total addressable market could witness a massive spike over the coming weeks and months. 

Oracle had reported that its Q4 revenues of $11.8 billion were achieved on the back of a sharp increase in cloud infrastructure demand as well as a spike in SaaS based services. The company offers 38 OCI Dedicated Regions globally besides also providing a distributed cloud strategy with the service. 

There is also the option of extending them on hybrid architectures using the Roving Edge Infrastructure initiative that comprises local edge devices containing scalable server nodes that allow businesses to connect to Oracle’s cloud services and applications. 

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