Oracle's New Exascale Service: A Game-Changer in the Database Industry

Database Rivals on High Alert: Oracle's New Exascale Service Could Change the Game

Database giant Oracle (NYSE: ORCL) is spreading its digital wings in the cloud. A new service powers up the already-impressive Oracle Cloud Infrastructure (OCI) platform, helping customers save costs on high-performance cloud computing. How does this new service fit into Oracle's business model, and will it make a needle-moving difference for Oracle investors? Let's have a look. What's new? The new Oracle service is actually an upgrade to a multilevel stack of Oracle software. So Exascale makes the powerful Oracle Exadata system more flexible and affordable, especially when paired with the OCI platform. In particular, the Exascale solution makes Oracle's market-defining database software available to a larger group of small and medium-sized businesses. Cost efficiency for the win The cost savings are no joke. Oracle said that the starting price for an OCI-based Exadata database is $10,800 per month. Low-end or not, that's a massive computing platform -- you're buying a month's worth of access to more than 1,000 processors and 150 terabytes of data storage. By contrast, a starter pack of Exascale services involves 16 virtual processors and less than 1 terabyte of storage. The bill will be based on hours of usage, but starts at just $357 per month. That's a steal if you don't really need an enormous cloud-computing machine. On the flip side of the service-scaling coin, enterprise customers can deploy truly massive Exascale database solutions at the drop of a hat. Oracle's marketing positions this service as a useful data store to feed training data into AI engines, for example. Furthermore, the Exascale system works with Oracle Database version 23c and up, encouraging users of older versions to upgrade their contracts and skill sets to Oracle's latest and greatest software. How Exascale fits into Oracle's business model From a practical point of view, the Exascale system allows businesses to scale their computing resources up or down based on demand, providing flexibility and cost efficiency. This versatility and affordability position Oracle to capture a larger share of the cloud computing market, driving innovation and efficiency across various industries. Oracle is attempting to grow its addressable target market on both the high and low end of the business-size spectrum. Time will tell how quickly cloud computing users will adopt Oracle's ultra-flexible service offering, but the company is clearly not resting on its laurels. Moreover, Exascale is an AI service on both sides of the coin, incorporating on-the-fly analytics to power its data management services and selling the resulting product into the AI-training market opportunity. Oracle's Exadata Exascale may shake up the database market in two ways For investors, Oracle's strategic move with the Exascale system signals a commitment to innovation and market expansion. Oracle could boost its market presence in both the large-scale enterprise sector and the broader target of small and medium-sized businesses. Those digital wings I mentioned earlier are stretching to the skies and touching base with potential database buyers on the ground level. If nothing else, low-cost database vendors such as MongoDB and Couchbase should be shaking in their boots. Oracle's new service is aiming for their all-important base of cost-sensitive customers. The lower end-user costs may seem to put pressure on Oracle's profit margins, but keep in mind that the Exascale system is more cost-effective from the ground up. Lower costs of operation should balance out the smaller client bills, preserving Oracle's profitability while boosting the market size. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $741,989!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, MongoDB, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Database Rivals on High Alert: Oracle's New Exascale Service Could Change the Game | The Motley Fool

Oracle's new Exascale service promises big savings and high performance. See how the database giant is approaching both smaller and larger customers with this innovative service. Database giant Oracle (ORCL 0.38%) is spreading its digital wings in the cloud. A new service powers up the already-impressive Oracle Cloud Infrastructure (OCI) platform, helping customers save costs on high-performance cloud computing. How does this new service fit into Oracle's business model, and will it make a needle-moving difference for Oracle investors? Let's have a look. The new Oracle service is actually an upgrade to a multilevel stack of Oracle software. So Exascale makes the powerful Oracle Exadata system more flexible and affordable, especially when paired with the OCI platform. In particular, the Exascale solution makes Oracle's market-defining database software available to a larger group of small and medium-sized businesses. The cost savings are no joke. Oracle said that the starting price for an OCI-based Exadata database is $10,800 per month. Low-end or not, that's a massive computing platform -- you're buying a month's worth of access to more than 1,000 processors and 150 terabytes of data storage. By contrast, a starter pack of Exascale services involves 16 virtual processors and less than 1 terabyte of storage. The bill will be based on hours of usage, but starts at just $357 per month. That's a steal if you don't really need an enormous cloud-computing machine. On the flip side of the service-scaling coin, enterprise customers can deploy truly massive Exascale database solutions at the drop of a hat. Oracle's marketing positions this service as a useful data store to feed training data into AI engines, for example. Furthermore, the Exascale system works with Oracle Database version 23c and up, encouraging users of older versions to upgrade their contracts and skill sets to Oracle's latest and greatest software. From a practical point of view, the Exascale system allows businesses to scale their computing resources up or down based on demand, providing flexibility and cost efficiency. This versatility and affordability position Oracle to capture a larger share of the cloud computing market, driving innovation and efficiency across various industries. Oracle is attempting to grow its addressable target market on both the high and low end of the business-size spectrum. Time will tell how quickly cloud computing users will adopt Oracle's ultra-flexible service offering, but the company is clearly not resting on its laurels. Moreover, Exascale is an AI service on both sides of the coin, incorporating on-the-fly analytics to power its data management services and selling the resulting product into the AI-training market opportunity. For investors, Oracle's strategic move with the Exascale system signals a commitment to innovation and market expansion. Oracle could boost its market presence in both the large-scale enterprise sector and the broader target of small and medium-sized businesses. Those digital wings I mentioned earlier are stretching to the skies and touching base with potential database buyers on the ground level. If nothing else, low-cost database vendors such as MongoDB and Couchbase should be shaking in their boots. Oracle's new service is aiming for their all-important base of cost-sensitive customers. The lower end-user costs may seem to put pressure on Oracle's profit margins, but keep in mind that the Exascale system is more cost-effective from the ground up. Lower costs of operation should balance out the smaller client bills, preserving Oracle's profitability while boosting the market size.