Watch Larry Ellison headline the virtual event introducing Oracle Dedicated Region Cloud@Customer. Register here.

Oracle’s major new cloud service, Dedicated Region Cloud@Customer, is here to address a curious fact: Despite the enticing cost savings and agility gains of a move to the cloud, a majority of business and government compute workloads have not budged from their on-premises data centers.

Here’s why: The on-premises data centers of many organizations—think global finance, healthcare, telecommunications, and the like—represent years of business and government expertise built into architectures that transact billions of dollars of daily commerce. Those intricate processes must keep running, and the data they use must be handled with extreme care. These companies have their own strict policies around handling data and must also prove they meet data residency rules set by their governments about where it can be stored and who is allowed to see it. So they’re reluctant to move these operations away from their data centers and into a standard public cloud.

Oracle’s deceptively simple solution? Dedicated Region Cloud@Customer, which places a fully managed Oracle Cloud Infrastructure region inside a company’s data center. The “dedicated region” is simply a small, fully featured version of the modular cloud regions that Oracle continues to build around the world.

“Enterprise customers have told us that they want the full experience of a public cloud on premises to run their most important workloads,” says Clay Magouyrk, executive vice president of engineering for Oracle Cloud Infrastructure. The new service brings all of Oracle’s cloud services—including Autonomous Database and Oracle SaaS applications—behind an organization’s firewall, in its own building.

Dedicated Region Cloud@Customer allows customers to run their most mission-critical operations on the same second-generation cloud infrastructure that powers Oracle’s own public cloud offerings. That means it delivers the benefits of first-generation clouds—self-service, ease of use, and scalability—while also helping meet their most demanding latency and data residency goals, and helping to reduce data center operations costs, says Magouyrk.

Oracle’s Cloud@Customer program has also updated its popular version focused on database workloads. Autonomous Database on Exadata Database Cloud@Customer now features the latest Oracle Database where labor-intensive database tasks are automated and managed by Oracle, including provisioning, tuning, patching, scaling, and disaster protection. It’s available as a standalone service or as part of the comprehensive Dedicated Region service.

Meeting customer demand

Earlier versions of Exadata Cloud@Customer are running at hundreds of current customers—but many of those customers said they wanted more, says Magouyrk. “They want the full experience of the public cloud on premises to help them consolidate entire applications on second-generation cloud infrastructure,” he says. “And they want access to ALL modern cloud services on premises so that they can innovate at the rate of Oracle’s innovation.”

Dedicated Region Cloud@Customer meets these requests by making all of Oracle Cloud services available on premises. It also delivers consistent SLAs, APIs, and development tools across cloud and on premises, and is certified to run Oracle SaaS products—including ERP-Financials, human capital management (HCM), supply chain management (SCM), and customer experience (CX)—opening up new opportunities for organizations to standardize on these industry-leading business applications.

Pricing for Oracle Dedicated Region Cloud@Customer starts at a $500,000 per month commitment, with customers paying only for services they consume. They get the same, predictable low pricing offered in Oracle’s public cloud regions while helping meet their most demanding latency and data residency goals, helping to reduce data center operations costs.