In a strategic move to address the surging demand for cloud and AI services in Spain, Oracle has announced its plan to open a third cloud region in Madrid. This initiative involves a substantial investment exceeding $1 billion and will be carried out over the next decade. The multinational technology corporation aims to bolster AI skills development across the country while adapting to various regulatory and security requirements. This new public cloud region will serve a broad range of industries in Spain, including the financial services sector, which is particularly prominent in the region. Telefonica España has been selected as the host partner for this new cloud region, reinforcing its partnership with Oracle that spans multiple years and projects.
Oracle’s Strategic Move to Expand Cloud Infrastructure
Introduction of Madrid Cloud Region
Oracle’s new public cloud region in Madrid is designed to meet the needs of a wide range of industries, including the highly regulated financial services sector. This strategic expansion will be hosted by Telefonica España, further strengthening the long-standing partnership between the two companies. Oracle’s investment in Madrid underscores its commitment to fostering innovation and modernization across Spain’s public and private sectors. This development ensures that local organizations can leverage cloud technology effectively, enhancing their operational agility and competitiveness in a rapidly evolving digital landscape.The forthcoming cloud region in Madrid is expected to aid both public and private sector organizations in migrating mission-critical workloads to Oracle Cloud Infrastructure (OCI). In the process, these organizations can modernize their applications and innovate using data, analytics, and AI, ensuring compliance with key regulatory frameworks such as the Digital Operational Resilience Act (DORA) and the European Outsourcing Guidelines (EBA, EIOPA, ESMA). This compliance is especially crucial for financial institutions that must navigate stringent regulations due to the sensitive nature of their workloads.Compliance with Regulatory Frameworks
Ensuring compliance with essential regulatory frameworks is a significant focal point for Oracle’s new cloud region in Madrid. The infrastructure provided will play a critical role in allowing organizations in Spain to migrate their mission-critical workloads to Oracle Cloud Infrastructure (OCI) while ensuring they adhere to compliance requirements set forth by various regulatory frameworks. The Digital Operational Resilience Act (DORA) and European Outsourcing Guidelines, particularly, serve as pivotal benchmarks for those in the financial services sector, where data sensitivity and regulatory scrutiny are exceptionally high.Oracle is unique among hyperscalers in its ability to deliver AI and an extensive suite of over 100 cloud services across various environments, including dedicated, public, and hybrid cloud settings. Such comprehensive capabilities equip organizations with the necessary tools to manage and analyze vast amounts of data efficiently. Ensuring regulatory compliance through these services is not only a strategic advantage but also a necessity for financial institutions and other sectors handling sensitive information. By providing robust infrastructure and regulatory compliance tools, Oracle helps businesses maintain operational resilience and safeguard against potential data breaches and compliance lapses.Advanced Cloud Services and AI Capabilities
Unique Offerings Among Hyperscalers
Oracle stands out among hyperscalers due to its ability to deliver over 100 cloud services across various environments, including dedicated, public, and hybrid clouds. Some of its noteworthy services include the Oracle Autonomous Database, MySQL HeatWave Database Service, Oracle Container Engine for Kubernetes, Oracle Cloud VMware Solution, OCI Generative AI service, and OCI AI Infrastructure. These offerings collectively enable organizations to leverage powerful data analytics and AI capabilities, driving significant advancements in their operational efficiencies and business models. By providing such a vast array of cloud services, Oracle ensures that its customers can select the most appropriate tools to meet their unique needs.Spain’s minister for digital transformation and public administration, José Luis Escrivá, highlighted the significance of this development, expressing optimism about how this investment will facilitate the country’s digital transformation efforts. Similarly, Miguel López-Valverde, the councillor for digitalisation for the Government of the Region of Madrid, emphasized the importance of public-private collaboration in fostering cloud infrastructure development within the region. Over the next three years, Madrid is poised to attract investments exceeding six billion Euros from the cloud industry, a step expected to drive the creation of high-quality jobs, attract further investment, and retain talent. This commitment underscores the strategic importance of cloud technology in driving economic growth and competitiveness in modern economies.Enhancing Digital Transformation
The strategic importance of this investment by Oracle extends beyond mere infrastructure; it is poised to serve as a significant catalyst for Spain’s digital transformation. José Luis Escrivá and Miguel López-Valverde, who are key figures in Spain’s push towards digitalization, have both underscored the transformative potential of Oracle’s investment. Their comments highlight how public-private collaboration can stimulate not only technological advancements but also socioeconomic benefits such as job creation and talent retention. Oracle’s ambitious plan sets the stage for Madrid to become a major hub for cloud technology, attracting an estimated six billion Euros in cloud industry investments over the next three years.Albert Triola, Oracle Spain’s country leader, pointed out that Spanish enterprises and public sector organizations are quickly adopting cloud technologies to gain access to cutting-edge digital tools such as AI. The upcoming public cloud in Madrid will assist these entities in meeting data residency requirements and regulations specific to critical sectors like financial services. Triola reaffirmed Oracle’s commitment to investing an additional $1 billion in Spain over the next decade, aiming to help organizations across all sizes and industries accelerate their cloud technology adoption, thereby enhancing their business performance and resilience. This major investment is a testament to Oracle’s confidence in Spain’s economic potential and its commitment to fostering technological innovation.Collaboration with Telefonica España
Reinforcing Long-term Partner Ties
Oracle’s selection of Telefonica España as the host partner for the new Madrid cloud region underscores the strength and depth of their long-term collaboration. This partnership, which has spanned multiple years and projects, is designed to offer mutual benefits that extend beyond mere technical infrastructure. Telefonica’s involvement ensures that Oracle can leverage local expertise and robust telecommunications infrastructure, providing a seamless and agile transition for organizations looking to migrate to the cloud. The partnership is expected to streamline the delivery of innovative products and services, enhancing the capability to meet the growing demands of Spain’s dynamic business environment.Key industry players like Banco Sabadell and Naturgy have already expressed their support for Oracle’s ambitious investment. Enríque Rodríguez, Banco Sabadell’s director of technology services, emphasized the robust and secure cloud infrastructure provided by OCI, which aligns perfectly with the bank’s stringent regulatory compliance requirements. Rafael Blesa, general manager of information systems at Naturgy, mentioned the scalability, performance, and cost advantages of OCI, and how the new cloud region will enhance the company’s critical infrastructure support systems. These endorsements highlight the practical benefits and trust that key organizations place in Oracle’s cloud solutions, particularly in sectors like financial services, where regulatory compliance and data security are paramount.Benefits for Financial Institutions
The benefits of Oracle’s investment extend specifically to financial institutions that stand to gain substantially through enhanced compliance, security, and operational efficiency. Oracle’s comprehensive capabilities and robust cloud infrastructure align perfectly with the regulatory compliance requirements of financial institutions and other critical sectors, ensuring business continuity and high security standards. With the new cloud region in Madrid, financial organizations can take advantage of high availability and disaster recovery capabilities, ensuring that their operations remain uninterrupted even during unforeseen events. This resiliency is crucial for maintaining customer trust and meeting regulatory mandates.Ravin Dhalani, CIO of MASORANGE, underlined the critical role of cloud technologies in the telecommunications industry, facilitating high-speed services while improving operational efficiency. He expressed enthusiasm for Oracle’s third cloud region in Spain, which is expected to drive further innovation. Oracle’s approach to fostering technological advancement through strategic partnerships and regional expansions demonstrates its commitment to addressing the unique needs of diverse industries. By offering tailored solutions that meet specific regulatory and operational requirements, Oracle continues to solidify its reputation as a trusted partner for digital transformation in Spain and beyond.Supporting Public and Private Sectors
Modernizing Applications and Innovating with AI
The new cloud region in Madrid is poised to be a game-changer for both public and private sector organizations, offering them the tools and infrastructure necessary to modernize applications and innovate using data, analytics, and AI. Oracle’s extensive suite of over 100 cloud services provides organizations with the flexibility to choose solutions that best fit their specific needs, ensuring efficient data residency and adherence to sector-specific regulations. This capability is particularly beneficial for industries that handle sensitive information, allowing them to innovate while maintaining rigorous compliance standards.Albert Triola noted that the rapid adoption of cloud technologies by Spanish enterprises and public sector organizations reflects a broader trend towards digital modernization. The new public cloud will support their data residency requirements and compliance with critical sector-specific regulations, fostering enhanced business performance and resilience. Oracle’s comprehensive offerings in AI, data analytics, and cloud services enable organizations to optimize their operations, reduce costs, and drive innovation. This holistic approach ensures that businesses can navigate the complexities of digital transformation effectively, leveraging Oracle’s advanced technological solutions to stay competitive in a rapidly evolving marketplace.Meeting Compliance and Data Residency Requirements
Oracle’s commitment to regulatory compliance and data residency is particularly vital for organizations operating in heavily regulated industries such as financial services, healthcare, and government. The new cloud region in Madrid will provide the necessary infrastructure to ensure that organizations meet local and international regulatory requirements. This capability not only facilitates compliance but also enhances operational efficiency by providing secure, scalable, and high-performance cloud solutions. By addressing these critical needs, Oracle empowers organizations to focus on their core business objectives while maintaining compliance with stringent regulations.Rafael Blesa emphasized the scalability, performance, and cost advantages of Oracle Cloud Infrastructure, highlighting how the new cloud region will enhance critical infrastructure support systems for organizations like Naturgy. The ability to scale operations efficiently and cost-effectively is a significant advantage for organizations looking to optimize their technology investments. Oracle’s robust cloud solutions provide the necessary tools for businesses to innovate and grow, ensuring they remain competitive in an increasingly digital landscape. This focus on scalability and performance underscores Oracle’s commitment to delivering high-quality, reliable cloud services that meet the diverse needs of its customers.Enhancing Cloud Interoperability and Integration
Distributed Cloud Strategy
Oracle’s distributed cloud strategy is a key component of its approach to meeting the diverse needs of its customers. This strategy includes multiple deployment models such as public cloud regions, dedicated cloud services via OCI Dedicated Region, and hybrid cloud services like Oracle Exadata Cloud@Customer. This flexibility ensures that customers can choose the most appropriate solutions for their unique requirements, whether they need the scalability and flexibility of public cloud services or the control and customization offered by dedicated and hybrid cloud options. By offering a range of deployment models, Oracle provides its customers with the agility to adapt to changing business needs and regulatory requirements.The distributed cloud strategy also emphasizes the importance of high availability and disaster recovery capabilities. These features ensure that organizations can maintain business continuity even in the face of unexpected disruptions. By providing robust infrastructure and comprehensive support for disaster recovery, Oracle helps businesses safeguard their critical operations and data. This commitment to reliability and resiliency is a crucial factor for organizations looking to invest in cloud solutions that offer both performance and peace of mind. With a distributed cloud strategy that caters to diverse needs, Oracle continues to lead the way in providing innovative and flexible cloud solutions.Multicloud Interoperability
Oracle’s support for multicloud interoperability is another significant advantage for its customers. Services such as Oracle Database@Azure and MySQL HeatWave on AWS and Microsoft Azure ensure seamless integration with other cloud providers, offering customers the flexibility to optimize their cloud environments and maximize efficiency. This capability is particularly beneficial for organizations that use multiple cloud platforms, enabling them to leverage the best features and services from different providers while maintaining a cohesive and integrated IT infrastructure. Oracle’s focus on multicloud interoperability demonstrates its commitment to providing flexible and adaptable cloud solutions that meet the evolving needs of its customers.The ability to integrate seamlessly with other cloud providers also enhances Oracle’s appeal to organizations with complex and diverse IT environments. By offering solutions that are compatible with major cloud platforms, Oracle allows businesses to optimize their cloud strategies and achieve greater operational efficiency. This interoperability also facilitates smoother migrations and easier management of workloads across different cloud environments. Oracle’s approach to multicloud interoperability ensures that organizations can take full advantage of the benefits offered by multiple cloud providers, creating a more versatile and efficient IT infrastructure.Commitment to Security and Innovation
Secure and Autonomous Infrastructure
Oracle remains dedicated to providing secure, autonomous infrastructure within Oracle Cloud. This commitment to security is evident in the comprehensive range of features and services designed to protect sensitive data and ensure regulatory compliance. Oracle’s autonomous infrastructure leverages advanced technologies such as AI and machine learning to enhance security and operational efficiency. By automating routine tasks and monitoring for potential threats, Oracle’s autonomous infrastructure reduces the risk of human error and enhances overall security. This focus on security and autonomy is particularly beneficial for organizations that handle sensitive data and operate in highly regulated industries.The company continues to innovate and expand its cloud offerings to support digital transformation globally. Oracle’s ongoing investments in research and development ensure that its cloud services remain at the forefront of technology, offering customers access to cutting-edge solutions that drive innovation and growth. By continuously enhancing its cloud offerings, Oracle enables organizations to stay competitive in a rapidly evolving digital landscape. This commitment to innovation underscores Oracle’s position as a leader in the cloud technology space, providing customers with the tools and infrastructure they need to succeed in the digital age.Fostering Job Creation and Talent Retention
Oracle is set to establish a third cloud region in Madrid, Spain, in response to the growing need for cloud and AI services in the country. This major initiative involves an investment of over $1 billion, planned for execution within the next ten years. By expanding its cloud infrastructure, Oracle aims to enhance AI skills development nationwide while meeting various regulatory and security standards. The new public cloud region will cater to a wide range of industries in Spain, with a particular focus on the prominent financial services sector. Partnering with Telefonica España, Oracle reinforces an extended collaborative relationship that includes multiple projects and initiatives. This strategic move not only underscores Oracle’s commitment to technological advancement in Spain but also aims to empower diverse local sectors through innovative cloud solutions. Ultimately, Oracle’s new cloud region in Madrid is expected to provide significant advancements for both the public and private sectors, fostering digital transformation throughout the country.
