Dec 16, 2025 | Posted by Abdul-Rahman Oladimeji
Oracle has said it might consider letting customers bring their own hardware to Oracle data centers. Co-CEO Clay Magouryk explained how different business models impact Oracle's cash flow for new data center deployments.
Magouryk said: "In some cases, customers actually want to bring their own hardware, in which case, we don't have any capital expense. It's really around the data center itself, possibly networking gear, as well as a human labor cost."
He added that there are other "models" where vendors want to rent the capacity, in which case "those rent payments start when that is provisioned for the customer."
"We're then taking that cash flow and pushing that out to all of the different suppliers. And then, obviously, you got the model where Oracle takes its own cash, pays up front for the hardware, and then puts the capacity in. That's obviously the most cash-intensive upfront."
