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Oracle outlines German cloud datacentre expansion plans

Database software giant claims investment in German datacentres is being fuelled by growing demand for its cloud services in Europe

Oracle has outlined plans to expand its datacentre footprint in Frankfurt, Germany, with the software giant citing growing demand for locally hosted versions of its cloud services.

The company wants to add three further sites to its burgeoning portfolio of European datacentres to host its infrastructure-as-a-service (IaaS), software-as-a-service (SaaS) and platform-as-a-service (PaaS) offerings, as well as its bare metal compute and Oracle Database Cloud Services.

Oracle cited growing demand for its cloud services as a key driver for its latest round of datacentre investments, and said it expects the facilities to come online during the second half of 2017.

At the start of this year, Oracle announced plans to open a number of other datacentres around the world – including the UK, Turkey and the US.

Thomas Kurian, president of product development at Oracle, said the company already has a sizeable client base in Germany (with Lufthansa Cargo AG and Global Drinks among its reference customers) that will reap the benefits of the move.

“Oracle will be providing EU-based cloud customers with unmatched performance, availability and governance, and support of the broadest range of enterprise applications from any cloud platform,” said Kurian.

Cloud has emerged as a small, yet growing, part of Oracle’s overall business, with the firm reporting a 63% year-on-year jump in cloud revenue in its recently published third-quarter financial results.

Oracle’s cloud activities generated $1.2bn in Q3, and now account for about 13% of its overall revenue.

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Frank Obermeier, vice president and country leader for Oracle Germany, said the opening of its German datacentres should help enterprises meet their data protection and compliance requirements, while embarking on new digital transformation efforts.

“This investment in Germany demonstrates our commitment to provide unrivalled state-of-the-art technology infrastructure where and when our customers need it,” he said.

“This will be particularly important as companies ensure their migration to the cloud complies with the impending EU General Data Protection Regulation.”

Tim Jennings, chief analyst for enterprise IT at market watcher Ovum, said Oracle’s datacentre and cloud investments will be of interest to enterprises looking to accelerate their move off-premise.

“The enhanced Oracle EU region in Germany will provide organisations with the full spectrum of cloud services, delivered with the same levels of enterprise-class performance, security and availability they have come to expect from their on-premise technologies,” he said.

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