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Oracle Interconnect for AWS: Redefining Multicloud Interoperability and Cross-Cloud Data Flow
Oracle Interconnect for AWS reaches general availability with zero egress fees, managed private links, predictable pricing, and joint cloud support.
08/12/2026
Key Highlights
- Oracle Interconnect for AWS is now generally available as a fully managed, high-speed private network bridge between OCI and AWS.
- The architecture aims to eliminate custom overlay networks by natively pairing OCI FastConnect directly with AWS Direct Connect.
- Pricing is designed to provide globally uniform connection rates with zero cross-cloud data egress transfer charges.
- Security controls feature built-in, always-on encryption alongside a coordinated joint support model between both cloud providers.
- Initial availability spans OCI Ashburn and AWS US East in Northern Virginia, with additional regional pairs slated for subsequent rollout.
The News
Oracle has announced the general availability of Oracle Interconnect for AWS, providing a managed, high-speed private link between Oracle Cloud Infrastructure and Amazon Web Services. The service enables organizations to run distributed applications and move data between both clouds without relying on public internet connections or bespoke networking hardware. It aims to streamline multicloud operations by delivering predictable capacity billing, native encryption, and joint operational support across both cloud platforms. Readers can find out more by clicking here to read the announcement blog.
Analyst Take
Enterprises have long moved past the naive assumption that a single hyperscaler would consume their entire IT estate. In practice, architectural heterogeneity is the norm, with data-intensive database workloads sitting on one platform whilst application front-ends and analytics engines reside on another. According to multicloud research from McKinsey and Deloitte, over 80 percent of enterprise organizations operate across multiple cloud providers today. Aligning with this trend, data from the HyperFRAME Research Lens reveals that 79% of public/hybrid enterprise organizations use multiple cloud providers, with 27% running four or more, underscoring how multi-provider environments have become standard operational reality.
Yet, connecting these environments historically meant enduring a proper administrative headache. Network engineers were forced to negotiate third-party carrier circuits, manage overlapping IP spaces, stitch together IPsec tunnels, and navigate opaque egress tariffs. The resulting setups were fragile, expensive, and notoriously difficult to maintain. Oracle Interconnect for AWS aims to strip away that complexity by offering a turnkey, cloud-native connection. Network engineering gets simpler.
Beyond laying dedicated network pipes to bypass egress fees, this strategic realignment is evolving into fully embedded co-location, evidenced by the rollout of Oracle AI Database@AWS which physically places Oracle Exadata infrastructure directly inside Amazon Virtual Private Clouds (VPCs). By enabling Zero-ETL architectures, enterprise data teams can now feed high-value transactional data directly into Amazon’s advanced machine learning ecosystems, such as SageMaker and Bedrock, without introducing latency or integration friction. We see this push toward interoperability as neutralizing the convenience advantage of AWS's native database portfolio, enabling Oracle to consistently capture broader cloud market share by optimizing mission-critical data regardless of where the application layer resides.
What Was Announced
The service provides a production-ready, fully managed private interconnect that pairs Oracle Cloud Infrastructure FastConnect directly with AWS Direct Connect. Rather than requiring third-party circuit procurement or custom colocation arrangements, the platform is designed to enable network administrators to establish direct connectivity through familiar cloud management consoles in just a few clicks. The technical underpinning relies on an OCI Dynamic Routing Gateway attached to an AWS Direct Connect Gateway and Virtual Private Cloud, enabling private IP traffic flows across both environments. The connectivity service is designed to support scalable bandwidth allocations, allowing teams to provision and adjust connection capacity on demand without experiencing network downtime or requiring physical re-architecting.
Security is integrated into the core design, offering always-on encryption for data in transit across the private link to safeguard application-to-application traffic. On the financial side, the offering aims to deliver a predictable cost structure based solely on provisioned capacity, incorporating OCI's globally uniform connection pricing while eliminating cross-cloud data egress fees entirely. From an operational standpoint, the announcement includes a coordinated joint support model where enterprise customers can open support tickets through standard interfaces, triggering synchronized troubleshooting between Oracle and AWS engineering teams. Initial regional footprint targets OCI Ashburn paired with AWS US East in Northern Virginia, with further global region pairs planned for future phases.
Eliminating egress charges across this inter-cloud boundary is a calculated economic move. Egress fees have long functioned as an effective tax on data portability, penalizing enterprise architectures that split database engines from application layers across cloud boundaries. By removing data transfer tariffs from the calculation, Oracle and AWS are changing the fundamental unit economics of cross-cloud compute. Enterprise architects no longer need to restrict query design or cache aggressively simply to avoid unexpected bandwidth surcharges at the end of the billing cycle. The cost model becomes fixed and predictable. Capital stays aligned with compute utilization rather than network transport.
From a technical perspective, building reliable distributed applications across two distinct cloud platforms requires deterministic latency and high throughput. Public internet routing is inherently chaotic, subject to packet jitter, routing changes, and security vulnerabilities. Proprietary VPN tunnels over public infrastructure introduce crypto-overhead and throughput limits that choke heavy database synchronization streams. By anchoring this interconnect directly onto physical transport pipes between OCI and AWS facilities, latency drops to single-digit milliseconds. High-frequency database calls, real-time transaction processing, and streaming ETL pipelines can execute with near-local responsiveness. The friction disappears entirely. That level of operational predictability is essential for enterprise workloads that simply cannot tolerate intermittent packet loss.
We reckon this launch reflects a broader strategic realignment among hyper-scale cloud providers. For years, major cloud vendors treated competing platforms as walled gardens, forcing customers to pay heavy operational and financial penalties if they dared to move data outside the ecosystem. Oracle has been aggressive in breaking down these walls, first partnering with Microsoft for Azure Interconnect followed by the OCI-Google Cloud partnership helping to eliminate multi-cloud network friction, enabling enterprises to pair Oracle's high-performance database engine with Google's advanced AI and analytics capabilities. This approach acknowledges that customer value lies in running the best workload on the best engine rather than trapping data in a single silo. When Oracle databases run alongside AWS analytics tools without network friction, both vendors win greater wallet share from enterprise accounts.
Network security teams often view multicloud initiatives with deep suspicion because bespoke cross-cloud links expand the attack surface. Connecting two isolated cloud environments usually requires managing separate firewalls, identity rules, and encryption key hierarchies on each side. The integrated security model built into Oracle Interconnect for AWS solves a major governance headache. Private IP address routing ensures traffic never touches the public internet, whilst built-in encryption protects data against eavesdropping across transit links. Furthermore, joint operational workflows mean security teams do not get caught in a game of support ping-pong when cross-cloud traffic experiences anomalies.
Looking Ahead
Based on what we are observing in the enterprise cloud landscape, the general availability of Oracle Interconnect for AWS marks a significant milestone in the ongoing decoupling of database infrastructure from application compute layers. Our perspective is that cross-cloud connectivity is transitioning from a specialized networking workaround into a baseline architectural capability. When you look at the market as a whole, the announcement places substantial pressure on legacy third-party interconnection providers and traditional colocation vendors who previously monetized the friction of cross-cloud networking.
The key trend that we are going to be looking out for is how rapidly enterprise customers leverage this low-latency pipe to construct unified, multi-provider AI pipelines. As organizations train custom models using AWS cloud services while retaining transactional data within Oracle Autonomous Databases, data movement becomes paramount. Deloitte research indicates that data movement latency and egress economics remain top barriers to enterprise AI scaling; this managed interconnect directly addresses both friction points. This architectural shift becomes critical considering HyperFRAME Lens data indicates that security and compliance is the #1 barrier to scaling infrastructure for 72% of enterprise I&O leaders, making native encryption and private link architectures fundamental prerequisites for cross-cloud deployment.
Going forward we are going to be closely monitoring how the company performs on expanding regional availability beyond Ashburn and Northern Virginia. Global enterprises require uniform availability across European, Asian, and Latin American cloud regions to satisfy data residency and localized latency requirements. HyperFRAME will be tracking how the company does in coordinating joint SLA enforcement and expanding throughput options in future quarters as customer adoption ramps up.
Ron Westfall | VP and Practice Leader for Infrastructure and Networking
Ron Westfall is a prominent analyst figure in technology and business transformation. Recognized as a Top 20 Analyst by AR Insights and a Tech Target contributor, his insights are featured in major media such as CNBC, Schwab Network, and NMG Media.
His expertise covers transformative fields such as Hybrid Cloud, AI Networking, Security Infrastructure, Edge Cloud Computing, Wireline/Wireless Connectivity, and 5G-IoT. Ron bridges the gap between C-suite strategic goals and the practical needs of end users and partners, driving technology ROI for leading organizations.
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Steven Dickens | CEO HyperFRAME Research
Regarded as a luminary at the intersection of technology and business transformation, Steven Dickens is the CEO and Principal Analyst at HyperFRAME Research.
Ranked consistently among the Top 10 Analysts by AR Insights and a contributor to Forbes, Steven's expert perspectives are sought after by tier one media outlets such as The Wall Street Journal and CNBC, and he is a regular on TV networks including the Schwab Network and Bloomberg.