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Oracle Leaps Into the Costly Cloud Arms Race

Computer giant plans to quadruple number of giant data-center complexes over next two years


Oracle Corp. plans to quadruple the number of its giant data-center complexes over the next two years, a move that could significantly boost capital spending as it tries to chip away at Amazon.com Inc.’s massive lead in the cloud-infrastructure market.


The expansion thrusts Oracle into an expensive arms race against the market’s biggest spenders, Amazon, Microsoft Corp. and Alphabet Inc.’s Google. Those giants are working to wrest away traditional Oracle database customers shifting from their own data centers to web-based computing services.


Roy Illsley, lead cloud analyst at Ovum in London, "Oracle is now spending the money it needs to spend and showing intent, rather than making noise."

Mr Illsley thinks Oracle can make up ground since many critical computing operations running on the company's technology are only just beginning to move away from corporate data centers. Oracle can also benefit by selling its cloud applications and analytics tools, which will run in the new regions, to customers in markets where they weren't previously available.


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