European enterprises are increasingly adopting Oracle cloud environments, especially with partners that can advise on and deliver monetizable, AI-driven solutions, according to a new research report published today by Information Services Group (ISG), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens Oracle Cloud and Technology Ecosystem report for Europe finds a growing number of companies view Oracle as a specialist hyperscale cloud provider for data- and AI-intensive workloads. They value its database leadership, cost-efficient AI infrastructure and deep multicloud integration that allows Oracle databases to run seamlessly within rival cloud environments.

“Enterprises in Europe are turning to Oracle Cloud Infrastructure for its performance, AI capabilities and multicloud strategy,” said Anthony Drake, partner and president, ISG EMEA. “Running Oracle databases on competitors’ clouds aligns with enterprises’ need to protect existing investments while scaling AI and data innovation.”

Oracle’s delivery of AI as a built-in capability of its core applications, rather than an add-on feature, has created new ways for service providers to add value, ISG says. By embedding AI agents into Oracle Fusion Applications as part of the base subscription, Oracle helps organizations move AI from pilots to everyday business use. In response, providers are developing proprietary, industry-specific AI agents for Fusion Applications, offering them through Oracle’s AI Agent Marketplace and differentiating themselves with deep domain expertise rather than basic AI implementation skills.

Operational resilience, cost control and regulatory certainty have become critical priorities for European enterprises operating across increasingly complex cloud environments, the report says. To meet these needs, organizations are seeking providers with mature site reliability engineering practices, strong FinOps capabilities to govern cloud spending and integrated security for continuous compliance monitoring. In regulated sectors, providers are introducing compliance-as-a-service offerings, delivered via EU-based legal entities and personnel, for auditable adherence to EU sovereign cloud mandates.

Enterprises in Europe increasingly prefer more flexible cloud designs in which individual business functions are delivered as standalone AI capabilities rather than large, rigid applications, ISG says. This shift increases demand for providers that go beyond traditional services by operating fully managed, in-country cloud platforms from their own data centers. These providers enable enterprises to modernize their digital foundations while maintaining latency, regulatory compliance and operational control.

“The European Oracle ecosystem has reached a critical turning point as AI, multicloud and sovereignty converge,” said Roman Pelzel, principal analyst, ISG Provider Lens Research, and lead author of the report. “Enterprises and partners that move quickly can build differentiated capabilities, secure compliant architectures and gain a lasting competitive edge.”

The report also explores other trends in Oracle cloud adoption in Europe, including growing AI skills gaps between Oracle partners and rising pressure on providers to build higher-value managed services to sustain profitability.

To learn more, visit: www.isg-one.com

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