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VENDORiQ: Oracle AI World – OCI and AI. Why is it Important?

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Oracle streamlines OCI and embeds AI across all products, enabling hybrid cloud options and unlocking data-driven business intelligence for users.

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The IBRS attendance at Oracle AI World in Las Vegas has identified several opportunities for users of Cloud to consider. Importantly, the focus of the value proposition is maximised by leveraging the Oracle platform end-to-end. However, the reduced size of the Oracle Cloud Infrastructure (OCI) to only three racks of equipment means that an Oracle artificial intelligence (AI) Cloud instance can either be embedded in other Cloud data centres or in your on-premise Cloud.

Oracle is looking to improve its market position through streamlining of its OCI and providing AI as a service at no additional cost as a deal sweetener. The recent Oracle releases of information demonstrate that Oracle will now make AI a service for all of its products, including Fusion and NetSuite, where Cloud and on-premise applications will have AI included, not as an optional extra.

Why It Matters

These Oracle releases aim to build on the new OCI architecture with embedded AI, where data is the key, enabling customers to leverage their data holdings to use AI to provide relevant, accurate intelligence on business processes, risk, governance, and customer satisfaction.
Current customers of Oracle will need to assess whether their current applications can benefit and whether business processes need to be improved to use the capabilities to their full potential.
Non-Oracle users need to assess the value proposition of the OCI and AI offerings to consider whether they are worth considering in current or future market tests for Cloud-based solutions.

Who’s Impacted?

  • Heads of Business Operations: You must assess the value proposition provided by a shift to a platform-based approach, versus the piecemeal best-of-breed of hybrid Software-as-a-Service (SaaS) and on-premise managed applications. The Oracle OCI end-to-end control of data and the ability to leverage productivity improvements must be a consideration for future decisions in the use of technology to support the business.
  • Heads of Infrastructure and Cloud Operations: You must assess how your Cloud provider’s shifting capital expenditure strategy might affect the long-term cost, performance, and innovation cadence of the core compute, storage, and networking services you rely on. Specifically, how your on-premise Cloud architecture might leverage OCI.
  • Cloud Architecture Executives: This trend requires you to evaluate the strategic importance of general-purpose versus specialised AI infrastructure in your long-term Cloud architecture. Vendor investment priorities may signal where future service development and pricing advantages will lie.

Next Steps

  • Evaluate the new Oracle OCI and AI offering to see where it can deliver value for your business.
  • Question your strategic Cloud providers on their investment roadmaps. Seek clarity on the balance of capital expenditure between foundational infrastructure and specialised AI services.
  • Analyse your dependency on general-purpose Cloud services and model the potential impact of their cost structures.

Additional Reading

The Oracle releases thus far are highlighted below for your reference.

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