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Oracle customers can now start deploying the company’s software-as-a-service applications in their private data centers with an update to its Cloud at Customer portfolio announced today. The changes will allow businesses to rent hardware that runs the same enterprise resource planning, human capital management, customer experience, and supply chain management applications that are available through Oracle’s public cloud services.

In addition, Oracle expanded the platform-as-a-service (PaaS) capabilities of the Cloud at Customer hardware. Customers can now get hardware that will let them run the company’s Database Cloud, Analytics Cloud, Container Cloud, and other services in their private data centers. The hardware has also been upgraded with faster CPUs and NVMe storage, which reduces latency.

As the name may imply, Cloud at Customer lets customers rent hardware for their data centers that replicates the experience of using Oracle’s matching public cloud services. It’s a move by the tech giant to try to meet customers where they are, rather than require businesses to migrate to public cloud environments in order to get access to the latest software.

“The main reason for having this set of offerings is that customers across the world, significant numbers of them are not able to put their data and applications in a public cloud,” said Nirav Mehta, a vice president of product development at Oracle. “[That’s] due to either data residency or other privacy concerns, and in some cases, network latency concerns.”

Oracle will manage the hardware and software deployed on the Cloud at Customer machines, much like it would in the public cloud environment. Cloud at Customer has managed to land a large number of key customers, including the City of Las Vegas and AT&T.

Customers will have to commit to a three-year contract in order to get access to the Cloud at Customer services. The Cloud at Customer SaaS offerings cost the same amount of money as a three-year contract for Oracle’s public cloud SaaS offerings. Customers should expect to pay some money up front for the Infrastructure-as-a-Service and Platform-as-a-Service offerings, however. (Oracle doesn’t require that for SaaS customers because the company can plan how much hardware it will need to install.)

Oracle isn’t the only company that’s working on hardware that runs in a private data center and integrates with a public cloud platform. These announcements come shortly after Microsoft announced that hardware running its Azure Stack software is now available for purchase. Azure Stack allows customers to run a private version of that company’s public cloud environment in their data centers, offering many of the same services they’d be used to with the public version of Azure.

Amazon Web Services is also rumored to be working on software that would let businesses run versions of AWS services inside their own data centers. Google also just announced a Transfer Appliance that’s supposed to sit inside a company’s private data center and help transfer data to the public cloud.

Correction 5:30 p.m. Pacific: This article previously said that customers should expect to pay a flat fee for IaaS and PaaS hardware because they had to purchase it. Customers have to pay a flat fee, but do not have to purchase the hardware. The article has been corrected. 

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