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Caitlin covers social media, marketing and technology and is BRW's social media editor. She has worked as a journalist in Sydney, London and San Francisco, writing for titles including The Guardian and The Australian Financial Review.

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Oracle expands local cloud as demand grows

Published 22 January 2013 12:01, Updated 28 January 2013 09:47

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Oracle expands local cloud as demand grows

Oracle chief Mark Hurd says the company’s newest Australian data centre alleviates customer concerns about data having to be hosted offshore. Photo: Supplied

Oracle is the latest technology company to expand its Australian cloud computing offering to serve customers that prefer to keep their data onshore.

The software giant has opened a second data centre in Sydney, taking a large footprint in a facility run by Equinix to expand its cloud software offerings and move into infrastructure and platform services.

The centre opened at the start of January with several new clients, including financial services company IOOF and consultancies Wired2Cloud, i3000, Vensys Consulting and SDS Group.

Oracle president Mark Hurd, in Australia for the announcement, says the new facility represents a substantial investment for Oracle, though he declined to quantify it.

“It’s a commitment not just to the IT industry and not just to the market but to Australia, which is a good market and a solid market,” Hurd says. “[When deciding to invest in a country] we certainly look at scale of the market and the size of the market and the receptivity to our offering.”

Oracle is part of a growing trend for cloud service providers to open facilities here, rather than connecting Australian customers to data centres offshore. One of the major drivers is the fact that many local companies either want – or are required by regulation – to keep sensitive data such as customer records within Australian jurisdiction. Late last year US-based cloud infrastructure providers Rackspace and Amazon Web Services opened local facilities in Sydney in response to growing market demand.

Oracle’s first data centre runs mostly customer relationship management software on demand. The new data centre offers an expanded range of software-as-a-service, with the full suite of Oracle Fusion applications, as well as expanding into platform-as-a-service and infrastructure-as-a-service for the first time.

Hurd says Oracle’s aim is to let the customer choose how they want the services delivered, allowing them to “mix and match” what they put in the cloud and what they run internally or in a private cloud.

“If there is a concern about the data centre being outside the country, we’ve just alleviated that,” Hurd says. “If there is a concern about the data being outside the firewall then we will build a private cloud inside your data centre.”

He says the pricing would be “competitive” for the local market and allow customers to buy “burst capacity” for peak periods of demand.

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