Oracle did not sell its database business to AWS, and AWS did not turn Oracle Database into an AWS-native service. The September 2024 agreement created a jointly sold multicloud service—now increasingly called Oracle AI Database@AWS—that places Oracle-managed Exadata and Autonomous Database infrastructure inside selected AWS data centers.
The result is a compromise for enterprises: applications can remain on AWS and connect privately to Oracle databases while customers retain Oracle compatibility, Exadata, and selected Autonomous Database capabilities. Oracle still operates the database platform, AWS supplies the surrounding cloud environment and Marketplace purchasing path, and customers generally need both AWS and OCI arrangements.
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What Oracle and AWS announced
On September 9, 2024, Oracle and Amazon Web Services announced a strategic multicloud partnership called Oracle Database@AWS. The original plan included Oracle Autonomous Database on dedicated infrastructure, Oracle Exadata Database Service, private connectivity to AWS applications and services, and unified administration, billing, and support.
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The partnership targets companies that already run Oracle databases but have moved—or want to move—their applications, analytics, and artificial-intelligence workloads to AWS. Rather than rewrite a large Oracle application for a different database engine, a company can place the Oracle database close to its AWS workloads.
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When did the service become available?
- September 9, 2024: Oracle and AWS announce the partnership.
- December 2, 2024: Limited preview begins, initially in AWS US East.
- July 8, 2025: General availability begins in US East (N. Virginia) and US West (Oregon).
- February 3, 2026: Canada Central and Sydney become available.
- April 8, 2026: Availability expands to 12 AWS Regions.
- May 29, 2026: AWS announces availability in 20 AWS Regions.
- June 10, 2026: Oracle documents public-offer and serverless updates.
The original announcement was therefore not the same as immediate customer availability. Service availability remains product- and region-specific. A claim that the service is available in 20 Regions does not mean every database product is offered in every one of them. Check Oracle’s regional availability table for the exact service and date.
Is Oracle Database really running inside AWS?
Physically, yes—but operationally, it is still an Oracle-managed service. Oracle installs and manages OCI database infrastructure, including Exadata systems, inside selected AWS data centers. Customers’ AWS applications connect to that Oracle environment through a private network.
A useful way to understand the architecture is:
- AWS Region: The location where the customer’s applications and the Oracle database deployment are placed.
- AWS VPC: The customer’s private AWS network containing services such as EC2, EKS, ECS, S3-connected applications, Bedrock, or SageMaker workloads.
- Oracle Database Network: The private connectivity layer associated with an AWS Availability Zone.
- OCI-managed database infrastructure: Oracle Exadata and related database services installed in the AWS facility.
- Paired OCI Region: The OCI region associated with the AWS deployment. Customers must subscribe to and administer the relevant OCI environment as well as the target AWS Region.
Oracle describes the arrangement as OCI residing within AWS data centers. It is not the same operating model as Amazon RDS for Oracle, where AWS manages the database service on AWS infrastructure.
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| Service | Infrastructure model | Typical use | Offer path |
|---|---|---|---|
| Oracle Exadata Database Service on Dedicated Infrastructure | Dedicated Exadata infrastructure; customer retains more database administration control | Existing Exadata, RAC, and compatibility-sensitive workloads | Generally private offer |
| Oracle Autonomous AI Database on Dedicated Exadata Infrastructure | Oracle-managed Autonomous Database on dedicated Exadata | Customers seeking automation with dedicated infrastructure | Generally private offer |
| Oracle Autonomous AI Database Serverless | Serverless managed database | Variable workloads and cloud-native applications | Private or public offer, subject to region |
| Oracle Database Autonomous Recovery Service | Oracle-managed backup and recovery service | Database resilience and recovery operations | Generally private offer |
Oracle documentation lists support for database versions including 19c and 26ai, but version availability depends on the service and Region. Do not assume that a version or product listed in Oracle’s general documentation is available in every AWS location.
How AWS and Oracle divide responsibility
Oracle remains responsible for the Oracle database platform, Exadata infrastructure, and the private connectivity into the database environment. AWS provides the surrounding cloud context, including AWS accounts, VPCs, networking integrations, Marketplace procurement, and access to AWS application and analytics services.
That division matters for operations. “Managed” does not mean that AWS handles every layer. Customers still need to manage account access, application networking, AWS services, governance, data policies, and parts of the OCI tenancy. Depending on the selected database service, they may also retain database configuration, schema, workload, backup, and recovery responsibilities.
Networking and latency
The central technical benefit is proximity. Oracle databases can sit near AWS applications and connect through private networking rather than relying on a distant, public, or separately operated database environment.
AWS and Oracle support connectivity through direct VPC peering and broader services such as:
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- AWS Transit Gateway
- AWS Cloud WAN
- Amazon VPC Lattice
- AWS Resource Access Manager for cross-account scenarios
- Connections to on-premises networks, subject to the supported architecture
This design is intended to reduce network distance and complexity, but it does not guarantee a particular latency or performance improvement. Results depend on application placement, Availability Zones, query design, database size, workload, network topology, and whether traffic crosses Availability Zones or Regions.
Oracle and AWS document same-Availability-Zone connectivity as having no data-transfer charge for the Oracle application and database. Standard charges can apply when communication crosses Availability Zones. Cross-Region designs introduce additional latency, transfer costs, and recovery considerations. See AWS’s service and billing documentation before designing the network.
How procurement and billing work
Oracle Database@AWS is designed to appear within an AWS procurement workflow, but it does not turn Oracle’s commercial model into a simple AWS list price.
Private offers
Dedicated Exadata services generally require a negotiated private offer. A customer normally provides its AWS account information to Oracle, negotiates pricing and licensing, and then accepts or activates the offer through AWS Marketplace. Usage can appear on the AWS bill, while the underlying commercial terms remain specific to the Oracle agreement.
Public offers
The public-offer route introduced in 2026 allows eligible customers to purchase Oracle AI Database@AWS Serverless through AWS Marketplace without first arranging a private Oracle sales agreement. The documented public path is narrower than the private-offer portfolio and requires creation of a new OCI tenancy during onboarding. Current documentation describes a one-month contract duration with automatic renewal for the public serverless offer, but buyers should confirm the live Marketplace terms before purchase.
Licensing
Potential licensing approaches include:
- Bring Your Own License (BYOL)
- Eligible Oracle Unlimited License Agreements
- Oracle-provided licensing under negotiated commercial terms
Total cost depends on Oracle support obligations, processor metrics, existing commitments, cloud credits, infrastructure capacity, storage, backup and recovery, AWS networking, and negotiated discounts. AWS Marketplace billing can consolidate procurement, but it does not mean there is one simple or automatically cheaper price.
Oracle’s OCI price list is useful for comparison, but OCI list prices should not be treated as the commercial price of Oracle AI Database@AWS.
Typical onboarding process
- Choose a supported AWS Region and verify its paired OCI Region.
- Confirm that the required database service, version, and number of Availability Zones are available there.
- Prepare the AWS account, VPC, subnets, permissions, and Marketplace access.
- For a private offer, provide the relevant AWS account ID to Oracle and negotiate licensing, capacity, pricing, and terms.
- Accept the offer in AWS Marketplace.
- Link or create the required OCI tenancy, compartments, and administrator permissions.
- Configure the Oracle Database Network and connect it to the AWS VPC using the selected networking method.
- Provision Exadata, Autonomous Database, or Recovery Service through the supported AWS and OCI consoles.
- Configure encryption, monitoring, backups, high availability, quotas, and disaster recovery.
Prerequisites include an AWS subscription to the target Region, a paired OCI subscription, suitable AWS and OCI administrator permissions, and sufficient service limits. Oracle’s prerequisites and quota documentation should be checked before deployment.
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High availability and disaster recovery
Oracle documents support for Data Guard standby databases across Availability Zones and Regions, but the available design depends on the Region and service. A deployment may have only one supported physical zone for a particular offering, while another may support two or more.
- Same Availability Zone: Usually the simplest and lowest-distance design, but with less fault isolation.
- Cross-Availability-Zone: Better protection from a zone failure, potentially with additional latency, transfer charges, and operational complexity.
- Cross-Region: Stronger geographic resilience, but with higher latency, data-transfer cost, and more complex recovery planning.
High availability is not a default substitute for a tested recovery plan. Organizations should define recovery-time and recovery-point objectives, test failover, verify application behavior, and price the network and standby resources.
Oracle Database@AWS versus the main alternatives
| Option | Best suited to | Main trade-off |
|---|---|---|
| Oracle Database@AWS | Oracle-compatible workloads whose applications and data services are centered on AWS | Dual AWS/OCI operations and Oracle-specific commercial terms |
| Amazon RDS for Oracle | Conventional Oracle workloads that do not require Exadata or RAC | Not a like-for-like replacement for Exadata-based architectures or every Oracle feature |
| OCI directly | Organizations willing to place most of the database and application platform in Oracle Cloud | May require greater movement away from an AWS-centered architecture |
| Oracle Database@Azure | Organizations whose applications are concentrated in Microsoft Azure | Regional availability, networking, and commercial terms differ |
| Oracle Database@Google Cloud | Google Cloud-centered organizations needing Oracle compatibility | Must be assessed against its own regions, services, and procurement model |
| AWS-native databases | New applications that do not require Oracle compatibility | May require schema, SQL, tooling, and application changes |
Amazon RDS for Oracle deserves particular attention. RDS is an AWS database service with a more familiar AWS-native provisioning model and generally clearer public pricing structure. Oracle Database@AWS, by contrast, is aimed at customers needing Oracle’s Exadata, RAC, Autonomous Database, or related enterprise capabilities. The two products should be compared by architecture and feature requirements—not by the label “Oracle database” alone.
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Oracle Database@AWS is a strong candidate when:
- The company already operates Oracle Exadata or RAC workloads.
- Applications are predominantly on AWS and rewriting them for another database would be expensive or risky.
- The business needs Oracle compatibility, Exadata capabilities, or Oracle-specific tooling.
- A required geography is supported and data residency favors an AWS location where the service is available.
- The organization wants AWS Marketplace procurement and access to AWS analytics or AI services without abandoning Oracle.
- Oracle data needs to feed services such as S3, Bedrock, SageMaker, Amazon Q, or AWS analytics with limited application redesign.
It may be a poor fit when:
- The database is small, simple, or highly variable and does not justify dedicated Exadata infrastructure.
- The organization does not need Oracle compatibility.
- The target Region lacks the required product or Availability Zone design.
- The buyer expects ordinary AWS-native operations and transparent public pricing for dedicated Exadata.
- Existing Oracle licensing does not transfer economically.
- Applications and databases are spread across zones or Regions in a way that creates avoidable latency and transfer costs.
- The buyer needs a public offer but specifically requires a dedicated Exadata service.
What the deal means for enterprise cloud strategy
The agreement is best understood as a migration and multicloud compromise. It lets enterprises keep Oracle database compatibility while placing AWS applications and Oracle data services closer together. It may reduce migration effort and simplify procurement for an AWS-centered organization, but it does not eliminate Oracle licensing, OCI administration, capacity planning, or network design.
Before choosing it, a buyer should model at least three scenarios: Oracle Database@AWS, Amazon RDS for Oracle, and either direct OCI or migration to an AWS-native engine. The comparison should include licensing, support, Exadata or RAC requirements, application changes, AWS and cross-cloud networking, backup and disaster recovery, operational staffing, data residency, and exit costs.
For current service, version, and regional details, consult Oracle’s Oracle AI Database@AWS overview, the available-services documentation, and the 20-Region AWS announcement.
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