Executive Summary: ISG Provider Lens™ Oracle Cloud and Technology Ecosystem - Europe 2024

The individual quadrant reports are available at:

ISG Provider Lens™ Oracle Cloud and Technology Ecosystem - Consulting and Advisory Services - Europe 2024

ISG Provider Lens™ Oracle Cloud and Technology Ecosystem - Implementation and Integration Services - Europe 2024

ISG Provider Lens™ Oracle Cloud and Technology Ecosystem - Managed Services - Europe 2024

ISG Provider Lens™ Oracle Cloud and Technology Ecosystem - OCI Solutions and Capabilities - Europe 2024

Oracle is driving Europe’s digital transformation in a dynamic era

As we venture into 2025, Oracle’s position in the European market stands at a critical juncture, poised between  opportunity and challenge. The tech giant navigates a complex landscape shaped by economic uncertainties, geopolitical tensions and rapid technological advancements.

Oracle’s role in enabling digital transformation and innovation across Europe has never been more crucial. With the region grappling with a gradual economic recovery and the lingering effects of global crises, businesses and governments alike are turning to technology as a beacon of hope for increased efficiency, sustainability and competitiveness.

The European economy shows signs of resilience. The labor market, though tight, faces the paradox of skills shortages amid unemployment rates hovering around 6 percent.

Oracle’s cloud and AI solutions are becoming increasingly pivotal in this context. The company’s EU Sovereign Cloud initiative, launched to address data privacy and residency requirements, exemplifies Oracle’s commitment to meeting the unique needs of European organizations. This move comes at a time when data sovereignty and regulatory compliance are at the forefront of EU digital policy.

Yet, Oracle faces its own set of challenges. The company must contend with fierce competition from other tech giants, navigate the complexities of EU regulations and address the growing demand for sustainable and ethical technology solutions. The recent layoffs in Oracle’s cloud division hint at internal restructuring as the company aligns its resources with market demands.

As we delve deeper into Oracle’s strategies and innovations for 2024 and 2025, it becomes clear that the company’s success in Europe will hinge on its ability to provide advanced technology and adapt to the region’s unique economic, social and regulatory landscape. Oracle’s journey in Europe is more than a story of technological advancement; it is a narrative of resilience, adaptation and innovation in the face of unprecedented challenges.

Oracle’s Cloud Infrastructure in Europe: Expansion of Oracle cloud regions

Oracle’s cloud infrastructure in Europe has advanced significantly throughout 2024 and into 2025, solidifying the company’s position as a major player in the European cloud market.

Oracle has continued its aggressive expansion of cloud regions across Europe. As of 2025, Oracle Cloud Infrastructure (OCI) is available in more locations than any other hyperscaler, with 85 regions live and 77 planned globally, according to Oracle.

In Europe, Oracle has expanded its presence by establishing new regions in several countries, including Spain, where a third cloud region was opened in Madrid in 2024. This expansion is part of a broader investment plan exceeding $1 in Spain over the next decade.

Oracle’s expansion allows businesses in Europe to leverage OCI’s services while maintaining data residency within their preferred geographic locations.

Advancements of the sovereign cloud for EU

One of the most significant developments for Oracle in Europe has been the continued rollout and adoption of the Oracle EU Sovereign Cloud. Launched in 2023, this offering has gained substantial traction throughout 2024 and  2025.

The EU Sovereign Cloud is now being used in 15 countries across Europe, enabling commercial and public sector organizations to align with EU data privacy and sovereignty requirements. It is located entirely within the EU,  supported by EUresident personnel and operated by separate legal entities incorporated within the EU. The EU Sovereign Cloud offers the same services and capabilities as OCI’s public cloud regions, with identical support and SLAs. This setup has made the offering particularly attractive for industries with stringent regulatory requirements, such as healthcare, financial services and government sectors.

Multicloud partnerships and integrations

A prominent trend in Europe is the rapid adoption of cloud migration and modernization. Enterprises are increasingly transitioning their Oracle workloads to the cloud to capitalize on scalability, cost efficiency and enhanced security. Many businesses are opting for hybrid and multicloud strategies, which enable them to combine the best of on- premises and cloud-based environments. This approach ensures operational flexibility while ensuring compliance with stringent regulatory standards. Enterprises are also focusing on modernizing their databases, particularly by  upgrading to the Oracle Autonomous Database, to improve performance, reduce costs and bolster security. Embracing hybrid setups enables enterprises to leverage advanced Oracle technologies while optimizing their existing IT infrastructures.

To meet this demand, Oracle has significantly expanded its multicloud capabilities in Europe through strategic partnerships with other major cloud providers:

• Oracle Database@Azure: This service has been expanded to additional regions in Europe, including France,  Germany and Italy, with planned expansions to Spain, Sweden and the U.K.

• Oracle Database@Google Cloud: Launched in 2024, this service is now available in key European regions such as the U.K. and Germany Central.

These multicloud initiatives allow organizations in Europe to leverage Oracle’s database technologies alongside services from other major cloud providers, offering greater flexibility and choice in their cloud strategies. Oracle’s cloud infrastructure developments in Europe throughout 2024 and the plans for 2025 demonstrate a clear commitment to meeting the unique needs of the market in Europe.

By expanding its regional presence, offering sovereign cloud solutions and fostering multicloud partnerships, Oracle has positioned itself as a key player in Europe’s digital transformation landscape.

Oracle’s generative AI (GenAI) strategy

Data has become a strategic asset for enterprises in Europe, driving investments in analytics, business intelligence and data management solutions. Organizations are increasingly adopting AI and ML technologies to extract actionable insights, automate operations and improve decision-making. Integrating AI and ML into Oracle services has helped businesses streamline workflows and boost productivity. However, the rise in data breaches has heightened concerns about data security and privacy. As a result, enterprises are dedicating substantial resources to implement robust security measures to safeguard sensitive information and comply with stringent European regulations such as GDPR.

Oracle has emerged as a leader in AI and ML integration across its product ecosystem, making significant strides in 2024 and early 2025.

These advancements transform enterprise workflows, enable automation, enhance decision-making and foster  innovation across industries.

Oracle’s GenAI capabilities have expanded significantly with the introduction of Oracle Cloud Infrastructure (OCI) GenAI services. These services integrate large language models (LLMs) such as Meta Llama 3.1 and Cohere Command
R+, allowing enterprises to embed GenAI into their workflows securely and efficiently.

Key features include:

• Retrieval-augmented generation (RAG): Oracle’s RAG capabilities enable enterprises to combine GenAI with their proprietary data, ensuring contextually accurate outputs while maintaining data privacy. This service is particularly useful for automating complex tasks such as customer support, content generation and decision-making.

• AI Vector Search: Integrated into Oracle Database 23ai, this feature allows businesses to store and search unstructured data, such as documents and images, as vectors, enabling advanced similarity queries. This technology is revolutionizing industries such as retail and healthcare by powering recommendation systems and predictive analytics.

AI embedded across Oracle Fusion Cloud Applications

Oracle has embedded over 50 new AI capabilities across its Fusion Cloud Applications Suite, covering finance, supply
chain management (SCM), HCM, sales, marketing and customer service. These capabilities include:

• AI agents: These are designed to automate routine tasks, provide actionable insights, and recommend next steps; for instance, in finance, AI agents can spot anomalies or generate predictive forecasts.

• GenAI for business processes: Features such as contract summarization, sales opportunity recommendations and personalized marketing campaigns are now powered by GenAI within Oracle Fusion Cloud CX and ERP  applications.

• Industry-specific applications: Oracle has tailored its AI solutions for sectors such as healthcare (medical supply tracking) and manufacturing (real-time production insights), driving efficiency and innovation.

Oracle’s AI advancements are driving transformation across industries. By integrating structured sales data with unstructured customer reviews in the Oracle Intelligent Data Lake, retailers can optimize stock levels in real time and personalize marketing campaigns using Oracle Analytics Cloud. Oracle’s nextgeneration electronic health record (EHR) system leverages AI for voice-driven navigation, predictive care plans based on patient data and automated documentation processes to enhance clinical workflows. Predictive maintenance powered by Oracle 23ai analyzes sensor data to forecast equipment failures, reducing downtime and improving operational efficiency in manufacturing.

Oracle’s AI innovations are groundbreaking, but challenges persist

• Data privacy compliance: Balancing the use of advanced AI technologies with adherence to strict European  regulations such as GDPR.

• Competition: Standing out in the crowded enterprise AI market dominated by hyperscalers such as AWS, Google Cloud and Microsoft Azure.

• Adoption barriers: Addressing enterprise concerns around the cost, complexity and workforce readiness needed for AI-driven workflows.

To address these challenges, Oracle plans to expand its integration of GenAI into applications while strengthening security features to meet data sovereignty requirements. 

Its commitment to delivering industry-specific solutions positions Oracle as a key driver of digital transformation across Europe. In summary, Oracle’s advancements in AI and ML highlight its dedication to empowering businesses with tools that enhance efficiency, foster innovation and provide a competitive edge in an increasingly digital  economy.

Sustainability initiatives: Green cloud infrastructure

Sustainability has become a central theme in Europe’s IT sector. Many enterprises are adopting green IT practices, such as energyefficient data centers and cloud-based solutions, to reduce their carbon footprints. Service providers are supporting these efforts by offering tools and platforms designed to align with sustainability goals, reflecting companies’ growing commitment to environmental responsibility and regulatory compliance.

Oracle has made substantial strides in integrating sustainability into its product offerings and operations across Europe. The company’s efforts align with the growing demand for environmentally responsible technology solutions and the EU’s ambitious climate goals.

Oracle has invested heavily in making its cloud infrastructure more sustainable. The company’s latest generation of cloud hardware, Oracle Exadata X11M, delivers significant performance improvements while maintaining the same price point as the previous generation. This advancement allows customers to run their workloads faster and on fewer systems, contributing to energy efficiency and sustainability goals.

Sustainability reporting and management tools

Oracle has enhanced its sustainability reporting and management tools to help businesses  in Europe meet  increasingly stringent environmental regulations and stakeholder expectations. These tools are integrated into Oracle’s broader suite of enterprise applications, allowing companies to:

• Track and report on their carbon footprint across operations

• Manage and optimize energy consumption

• Monitor and improve supply chain sustainability

• Generate comprehensive sustainability reports aligned with EU reporting standards

By integrating sustainability features into its core products and aligning with EU green initiatives, Oracle is positioning itself as a key enabler of sustainable digital transformation across Europe. These efforts help Oracle’s customers meet their environmental goals and contribute to the broader European agenda for a greener, more sustainable future.

Future outlook and challenges for Oracle in Europe

As Oracle deepens its footprint in Europe, it finds itself at the intersection of immense opportunities and formidable challenges. The company’s forward-looking strategy is defined by innovative solutions tailored to meet Europe’s unique regulatory, operational and sustainability requirements. Data sovereignty and privacy remain prime concerns for organizations in Europe, and Oracle is taking proactive steps to address these priorities:

Pioneering innovation in 2025 and beyond

Oracle is set to unveil advanced offerings that align with Europe’s evolving digital landscape:

1. Expansion of EU Sovereign Cloud services: Building on its existing presence in 15 European countries, Oracle aims to expand its EU Sovereign Cloud further. This expansion will likely encompass new regions and enriched services to meet the increasing demand for robust data sovereignty solutions.

2. Industry-specific cloud solutions: Digital transformation is a key driver of Oracle service adoption in Europe. Enterprises are leveraging Oracle solutions to enhance CX, streamline operations and achieve competitive advantages. Tailored industry-specific solutions have proven particularly effective in addressing the unique needs of diverse sectors. Service providers are delivering Oracle-based platforms designed to optimize operations in these
industries while ensuring compliance with regulatory and business requirements. Oracle is actively developing  bespoke cloud solutions for industries such as healthcare, financial services and the public sector. These offerings will address specific regulatory and operational needs, cementing Oracle’s role as a trusted partner in Europe’s critical sectors.

3. Sustainable cloud infrastructure: Demonstrating its alignment with the EU’s green initiatives, Oracle is committed to powering 100 percent of its European data centers with renewable energy by 2025. The initiative includes adopting innovative cooling technologies and energy-efficient systems, underscoring Oracle’s focus on sustainability.

Addressing data sovereignty and privacy

• Investment in EU Sovereign Cloud: Oracle’s EU Sovereign Cloud is purpose-built to comply with European data privacy laws, ensuring that sensitive data stays within EU borders and is managed exclusively by EUresident personnel.

• Enhanced encryption and key management: With the introduction of advanced services such as OCI Dedicated Key Management and OCI External Key Management, Oracle is offering customers control over their data encryption, reinforcing data security and mitigating unauthorized access.

• Adapting to regulatory changes: Oracle is staying ahead of the curve by aligning its services with new EU regulations, including the Digital Services Act (DSA) and the Digital Markets Act (DMA). Agility will be key as Oracle navigates the evolving regulatory landscape.

• Transparency and trust: To build confidence among clients in Europe, Oracle is expected to implement  transparency measures, such as detailed audits and comprehensive reporting on data handling practices. These
initiatives aim to enhance trust and foster long-term relationships with customers.

Oracle’s strategic investments and innovations reflect a commitment to empowering European enterprises with advanced, compliant and sustainable solutions. While challenges such as intense competition and evolving regulations loom, Oracle’s focus on sovereignty, transparency and industry-specific solutions positions it as a pivotal enabler of digital transformation in Europe. By combining AI innovation, regulatory agility and green cloud infrastructure, Oracle is poised to shape the future of Europe’s digital economy.

Role of service providers

Service providers are integral to the success of Oracle service adoption in Europe. They facilitate cloud migration by simplifying the transition from legacy systems to modern, scalable cloud infrastructures. By implementing hybrid and multicloud strategies, providers help enterprises optimize operations while maintaining regulatory compliance. Service
providers also enhance value by integrating AI and ML into Oracle solutions, enabling enterprises to leverage data for automation, informed decision-making and operational efficiency. They also support sustainability efforts by offering energy-efficient platforms that comply with EU green regulations.

Furthermore, service providers address the growing demand for skilled professionals by offering training programs that enhance workforce capabilities. This focus on workforce development ensures that enterprises in Europe have access to the expertise required to navigate the complexities of modern IT environments.

Rising focus on cybersecurity

The escalating threat of cyberattacks has driven enterprises in Europe to prioritize cybersecurity and risk  management. The complex threat landscape necessitates advanced security measures to protect IT infrastructure and
sensitive data. Oracle service providers are meeting this need by offering solutions that address vulnerabilities and enhance enterprise organizational resilience. Effective risk management strategies have become crucial for ensuring business continuity, particularly in industries where the cost of data breaches can be substantial.

Demand for skilled Oracle professionals

The growing reliance on Oracle services has created a significant demand for skilled professionals with cloud, database and application development expertise. Service providers are proactively addressing this need by investing in training and certification programs that enhance workforce capabilities. These initiatives ensure the availability of
qualified professionals and enable enterprises to remain agile and competitive in the rapidly evolving IT landscape.

Unique features of the Oracle services market in Europe

The Oracle services market in Europe stands out due to its distinctive regulatory, cultural and technological landscape. The region’s stringent regulatory framework is a critical data privacy and security differentiator. Compliance with GDPR and other regional regulations is nonnegotiable, imposing significant compliance obligations on enterprises and service providers. Data residency requirements also influence the adoption of cloud solutions, as providers must offer region-specific services.

Cultural and linguistic diversity further distinguishes the market in Europe, necessitating tailored approaches to  service delivery, communication and support to address clients’ diverse needs across the region. Europe’s mature IT infrastructure impacts the pace and complexity of cloud migration projects as many enterprises operate well-established legacy systems that require careful integration with modern cloud technologies.

The public sector also represents a significant segment of the Oracle services market in Europe, demanding  customized solutions due to its strict procurement processes and rigorous compliance standards. Moreover, Europe’s innovation hubs foster collaboration among enterprises, research institutions and service providers, driving  technological advancements and addressing complex challenges.

Factors driving demand for Oracle services

Several factors are propelling the demand for Oracle services in Europe. The regulatory landscape remains a key driver as businesses seek solutions that ensure compliance with stringent data protection and localization laws.  Budget optimization is another critical factor, with organizations aiming to reduce operational expenses while  reallocating resources for digital transformation initiatives. Industry-specific challenges and the need for customized
solutions also contribute to the growing reliance on Oracle services.

Sustainability goals are increasingly shaping enterprise decisions, prompting businesses to adopt green IT practices in line with environmental standards. Service providers play a crucial role by delivering energy-efficient solutions that align with regulatory mandates and corporate sustainability objectives. These drivers collectively highlight the strategic role of Oracle services in helping enterprises in Europe achieve their operational and business goals.

Conclusion

Europe’s Oracle services market is defined by a unique blend of regulatory requirements, cultural diversity and technological sophistication. The demand for Oracle services continues to grow, driven by cloud migration, AI integration, digital transformation, sustainability and cybersecurity trends. Recent developments, including Oracle’s strategic partnerships and innovative solutions, further highlight the dynamic nature of this market.

Service providers are pivotal in helping enterprises in Europe achieve their business objectives by delivering  customized solutions, ensuring compliance and promoting innovation. These providers enable enterprises to thrive
in an increasingly competitive landscape by addressing industry-specific challenges and supporting sustainability  goals. As businesses seek to balance regulatory compliance with technological advancement, Oracle services remain central to their journey toward digital transformation and sustainable growth.

Key themes and developments in the Consulting and Advisory Services quadrant:

1. Increased Demand for Industry-specific Solutions: Tailored strategies for sectors such as finance, healthcare and manufacturing are driving differentiation. Providers are aligning Oracle capabilities with unique industry challenges to deliver measurable business outcomes.

2. Focus on Sustainability and Compliance: Providers are incorporating sustainability metrics and governance frameworks to address growing regulatory and environmental concerns. Compliance with European data protection standards remains a priority.

3. Change Management as a Differentiator: Effective transformation frameworks that prioritize workforce alignment and user adoption are essential. Leaders in this quadrant employ proprietary change management tools to ensure seamless Oracle transitions.

4. Integration of AI and Analytics: Advanced data analytics and AI-driven insights enable providers to offer proactive advisory services, streamlining processes and enhancing decision-making.

Leading providers in this quadrant continue to emphasize innovation and strategic advisory excellence, helping enterprises achieve agility and competitive advantages through Oracle’s evolving ecosystem.

Key themes and developments in the Implementation and Integration Services quadrant:

1. Integration with OCI and Multicloud Solutions: Providers are enhancing their multicloud integration strategies to enable enterprises to manage workloads efficiently across multiple cloud platforms.

2. Adoption of AI-driven Migration Tools: Increased focus on AI tools for data migration and system optimization reflects an industrywide move toward automation.

3. Vertical-specific Accelerators: Tailored solutions for key industries provide differentiation and expedite  implementation timelines.

Leaders in this quadrant excel in delivering comprehensive Oracle deployments, leveraging predefined solutions and reference architectures to significantly reduce time-tomarket.

They demonstrate advanced capabilities in creating robust and scalable integration frameworks that ensure seamless
interoperability between Oracle applications and third-party systems.

Their proactive focus on implementing stringent governance and security protocols ensures compliance across hybrid and multicloud environments, addressing evolving regulatory and enterprise standards.

These providers focus on establishing longlasting digital partnerships with clients and distinguish themselves with innovative, AI-powered migration tools and proven methodologies that minimize business disruption while optimizing legacy system transitions.

Key themes and developments in the Managed Services quadrant:

1. Proliferation of Proprietary Platforms: Providers are leveraging proprietary tools for enhanced monitoring, issue resolution and cost savings. Examples include AI-powered dashboards, automated patch management and self-healing capabilities that drive operational efficiency.

2. Focus on ESG Alignment: ESG-integrated services, such as sustainability-focused OCI management and carbon-conscious SLAs, are emerging as competitive differentiators for providers aligning with enterprise sustainability goals.

3. Customized Offerings for Vertical Industries: Tailored solutions for sectors such as financial services, healthcare and retail are enabling in-depth enterprise engagements by addressing industry-specific challenges and
compliance needs.

Enterprises are seeking providers that can deliver cost efficiencies without compromising on innovation or service quality. Providers must address challenges associated with ensuring seamless integrations across diverse cloud ecosystems while meeting unique enterprise needs.

Leaders in this quadrant excel in managing complex Oracle environments by integrating advanced AI-driven automation, multicloud governance and tailored solutions. Their focus on proactive optimization, cost efficiency and
industry-specific compliance positions them as strategic partners for Oracle-driven enterprise transformations.

Key themes and developments in the OCI Solutions and Capabilities quadrant:

1. AI-powered OCI Innovations: Service providers are increasingly integrating Oracle’s GenAI capabilities into OCI environments to deliver enhanced automation, predictive analytics and real-time decision-making. These innovations enable enterprises to improve operational efficiency and accelerate business outcomes.

2. Demand for Multicloud and Hybrid Solutions: With enterprises adopting diverse cloud ecosystems, providers are leveraging multicloud frameworks, such as Oracle Azure Interconnect, to enable seamless workload distribution and interoperability across platforms.

3. Focus on Industry-specific Solutions: Tailored OCI solutions addressing unique vertical requirements — such as
healthcare compliance, real-time retail analytics and manufacturing operational efficiency — have become a critical
differentiator for leading providers.

4. Enhanced Governance and Security: Providers are addressing heightened regulatory and compliance demands with robust governance frameworks, data localization solutions and advanced security measures tailored to industries with stringent standards, such as finance and public sectors.

5. Sustainability and ESG Alignment: OCIenabled solutions increasingly emphasize sustainability, with providers embedding carbon tracking, energy-efficient architectures and ESG metrics into their cloud strategies to meet the growing demand for environmentally conscious solutions.

6. Training and Workforce Development: Leading providers strongly emphasize upskilling and certifying talent in OCI capabilities. Investments in structured training programs, Oracle certifications and GenAI-specific learning initiatives ensure a future-ready workforce capable of driving innovation and delivering value.

Leaders in this quadrant exhibit comprehensive expertise in OCI architecture, delivering secure and scalable solutions that align with enterprise-specific needs. They stand out for their AI-driven innovations, multicloud integration expertise and tailored frameworks for addressing industry challenges. By embedding advanced governance,  compliance mechanisms and sustainability into their OCI offerings, leaders enable enterprises to modernize IT operations, achieve costefficiency and drive transformative business outcomes.

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