Oracle Interconnect for Microsoft Azure Now Supports Oracle US Government Cloud
Rhea-AI Summary
Oracle has announced the general availability of Oracle Interconnect for Microsoft Azure supporting Oracle US Government Cloud, connecting Oracle US Gov West (Phoenix) and Azure US Gov Arizona (Phoenix) regions. This integration enables government agencies to migrate workloads to FedRAMP High-authorized environments.
The interconnect combines Oracle Cloud Infrastructure FastConnect and Microsoft ExpressRoute, delivering less than two milliseconds round-trip latency for multicloud performance. Notable features include zero data transfer charges between clouds, direct connection to Oracle Autonomous Database and Exadata Database Service, and seamless integration with Azure analytics applications.
The service allows government agencies to leverage both clouds' strengths, with applications like Oracle Communications session border controllers benefiting from Oracle Government Cloud's reliability while maintaining Microsoft Teams connectivity.
Positive
- Zero data transfer charges between clouds
- Sub-2ms latency performance
- FedRAMP High authorization compliance
- Enhanced database connectivity options
Negative
- to specific geographic regions
Insights
Oracle's expansion of its Microsoft Azure interconnect to include US Government Cloud represents a strategic advancement in the $15+ billion government cloud market. This integration creates a seamless bridge between Oracle US Gov West and Azure US Gov Arizona regions, enabling government agencies to deploy workloads across both clouds with FedRAMP High authorization - a critical requirement for sensitive government workloads.
The interconnect's sub-2ms latency and zero-cost data transfer between clouds addresses two major barriers to multicloud adoption in government: performance concerns and unpredictable cross-cloud data costs. This directly challenges AWS GovCloud's position by offering agencies greater flexibility without the traditional multicloud penalties.
For Oracle investors, this partnership has three significant implications:
- It protects and expands Oracle's database franchise in government by allowing agencies to maintain Oracle databases while leveraging Azure services
- It creates a competitive moat against AWS by offering a unique value proposition through the Microsoft partnership
- It accelerates Oracle's government cloud revenue by removing adoption barriers for agencies with existing Microsoft investments
The timing is particularly strategic as government agencies increasingly seek to avoid vendor lock-in while modernizing legacy systems. Oracle's database dominance in government combined with Azure's broad service portfolio creates a compelling migration path that could accelerate Oracle Cloud Infrastructure adoption in a sector known for stable, long-term contracts.
Oracle's expansion of the Azure interconnect to government clouds represents a strategic procurement advantage in the federal market where agencies are increasingly adopting multicloud strategies under the Cloud Smart policy. This interconnect specifically addresses key procurement challenges that have historically Oracle's government cloud growth.
From a procurement perspective, this offering provides three compelling advantages:
- Contract consolidation potential - Agencies can leverage existing Microsoft Enterprise Agreements while adding Oracle services without separate procurement vehicles
- Reduced Authority to Operate (ATO) complexity - The pre-established FedRAMP High authorization streamlines security compliance documentation
- Budget optimization - Zero cross-cloud data transfer charges eliminate unpredictable costs that typically require additional budget justification
This partnership arrives as federal agencies face increasing pressure to modernize legacy Oracle databases that power mission-critical systems across defense, intelligence, and civilian agencies. The $7.8 billion allocated for IT modernization in the FY2025 budget creates an immediate opportunity for Oracle to capture migration spending.
The timing is particularly advantageous as several major government-wide acquisition contracts (GWACs) are approaching recompete in the next 18-24 months. Oracle's enhanced multicloud capabilities strengthen its position for inclusion in these vehicles, potentially expanding its addressable market within the $15+ billion federal cloud spending pool.
Interconnect enables customers to migrate and run mission-critical workloads at FedRAMP High
The Oracle Interconnect for Microsoft Azure combines Oracle Cloud Infrastructure FastConnect and Microsoft ExpressRoute to enable customers to deploy workloads across Oracle Cloud Infrastructure and Microsoft Azure regions. This provides less than two milliseconds of round-trip latency for superior multicloud network performance. Customers can also build new cloud-native applications using Azure for US Government and Oracle Government Cloud technologies.
With no additional charge for data transfer between the two clouds, Azure for US Government customers can maximize application performance by connecting government applications running in Azure directly to Oracle Autonomous Database and Oracle Exadata Database Service in the Oracle US Government Cloud. In addition, customers can take advantage of unique services in each hyperscaler such as Oracle Cloud Application and Process Integration Services and use them over a high bandwidth and low latency connection. For example, Azure analytics applications can seamlessly integrate with 'single source of truth' customer data residing in Oracle Government Cloud over a low-cost, high-performance connection.
Industry-specific applications such as Oracle Communications session border controllers, which are critical for real-time communications and Microsoft Teams connectivity to PSTN providers, can also benefit from Oracle Government Cloud's resiliency and reliability, with the elimination of downtime failovers.
"Government agencies shouldn't be stuck with a single cloud provider," said Kim Lynch, executive vice president, Government, Intelligence and Defense, Oracle. "Agencies need to be able to choose the best performing and most cost-effective cloud for each of their workloads. The support for the interconnect in these government regions provides a powerful new option for our mutual customers. By combining the strengths of the FedRAMP High-authorized Oracle Cloud Infrastructure and Microsoft Azure regions, agencies can achieve new levels of efficiency and scalability."
"Our collaboration with Oracle is unlocking new possibilities for government agencies by integrating the best of Microsoft and Oracle Cloud technologies," said Brett Tanzer, vice president Azure Solutions and Ecosystem, Microsoft. "This partnership empowers our joint customers to innovate faster, using advanced analytics, AI, Security and App services in the cloud."
"As organizations work to meet strict regulatory standards and data sovereignty requirements, multicloud environments can provide new levels of flexibility," said Samia Tarraf, Oracle Business Group lead for Accenture. "The Oracle Interconnect for Microsoft Azure will offer our government clients a new choice on where to run their workloads. Coupled with Accenture's experience with Oracle Cloud Infrastructure and Microsoft Azure, through this integration we can help clients reinvent and capture the value of generative AI and data sovereignty with a strong digital core."
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
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SOURCE Oracle
FAQ
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