On the Way to an Israeli Cloud: Oracle Announces Launch of Local Site

Software giant to build server farm in Israel to provide cloud services to private and government users

Oracle chairman and CTO Larry Ellison delivers keynote address during Oracle OpenWorld, San Francisco, California, September 16, 2019
AFP

Oracle is looking to open a new region – a local presence for their public cloud infrastructure – in Israel, the software giant announced during its OpenWorld conference in San Francisco, California on Tuesday.

Oracle said it will establish a server farm in Israel, which will be spread over two facilities, for reasons of redundancy and survivability. The infrastructure will be available both to the private and government sector.

The company expects to open "an average of one region every 23 days over the next 15 months, for a total of 20 additional regions (17 commercial and three government)," according to their press release. This expansion will include Oracle Cloud data centers in new countries throughout the world, including Israel, Saudi Arabia and the UAE in the Middle-East. Oracle also announced it would open two regions dedicated to government use, one in the U.K. and one in Israel.

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Oracle becomes the first international player to open a site in Israel, since competitors Google, Microsoft, IBM and Amazon do not have a local presence and rely on European sites to service their Israeli clients. A month ago, it became public that Oracle had started to make enquiries with local data centers. They are apparently still looking for an existing site that would meet their requirements.

The Oracle initiative fits with the Israeli government’s Nimbus Project, which will see the state's entire computing infrastructure transferred onto the cloud for an estimated cost of 500 million shekels a year. As part of the project, which was revealed in TheMarker, the government demanded the construction of a local site. Israel is unwilling to transfer its digital infrastructure to another territory, in order to safeguard information security, boost the level of service and comply with legal issues.

Oracle’s announcement benefits the government, but it is also expected to be a stimulus for other players to open a presence in Israel. It is also a positive development for Israel's developers, as Oracle promised at the conference to launch a free layer of service for students, with no time restrictions. The budding programmers will be able to develop their products on the Oracle Cloud free of charge.

Oracle is considered to be the fifth largest player in the public cloud market, and the third largest software company in the world, with an annual turnover of $40 billion.