Ovum view Summary Oracle just passed another milestone in expanding its cloud business with the filling out of its Cloud at Customer portfolio to achieve equity with its public cloud offerings. The product set, built around Oracle engineered systems, replicates the Oracle Public Cloud behind the customer’s firewall. While Oracle does not yet match Amazon’s breadth of cloud services or global footprint, Cloud at Customer fills a gap unserved by Amazon, addressing demand for the operational and economic model of cloud from customers whose policies require data to be maintained on premises. Productizing the private cloud While “private clouds” were initially considered an oxymoron, demand for cloud-based solutions that can exist within the four walls of the enterprise is real. In many sectors, regulatory constraints, especially around customer (or in healthcare, patient) privacy, for now preclude public cloud deployment where the data is deemed sensitive. Admittedly, the boundary between data that must be kept on premises and that which can be stored in public clouds will be subject to change, as public cloud providers document their security measures and relevant certifications and extend their physical presence to more countries. Compliance with mandates such as General Data Protection Regulation (GDPR) will prove a moving target as regulations become formalized in each of the EU member states. That was the genesis of Oracle’s Cloud at Customer portfolio, built around appliances branded Oracle Cloud Machine. (Our take is that Oracle should not have to brand the machines in its Cloud at Customer, because it gets confusing.) The operable concept is that Oracle Cloud Machines deliver the same environment as the Oracle Public Cloud. In effect, it delivers the equivalent of what Amazon calls “Virtual Private Cloud (VPC)” with an advantage that goes beyond that of private networking: the hardware is also identical to what runs in the Oracle Public Cloud.