Oracle to sell Snowflake as a native cloud service, accepting existing credits
The planned offering puts purchasing, discounts and billing under Oracle. The companies also promise easier data transfers, but have not set a release date.
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The planned offering puts purchasing, discounts and billing under Oracle. The companies also promise easier data transfers, but have not set a release date.
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The planned OCI service would make Oracle the commercial front door for Snowflake: customers can provision and pay through Oracle, apply Universal Credits, and receive Oracle-managed pricing, discounts, and billing. Integrations with Oracle applications and databases are intended to reduce custom pipelines and cross-cloud transfers, potentially avoiding egress fees; that is a data-movement claim, not a promise of lower overall Snowflake costs. No availability date was announced, and both companies caution that timing and functionality may change.
Supported data sources include Oracle Fusion Cloud Applications, Oracle NetSuite, Oracle Autonomous AI Database, MySQL HeatWave, and Oracle NoSQL Database.
Native transfers are intended to support reporting, data engineering, machine learning, and AI insights with less custom pipeline work.
The companies say keeping transfers within OCI may reduce cross-cloud movement and egress fees, not necessarily the total cost of Snowflake.
Oracle customers will be able to buy and run Snowflake’s AI Data Cloud through Oracle itself, using existing Oracle cloud credits. The companies announced the planned native service for Oracle Cloud Infrastructure, or OCI, on October 27, 2026. The agreement brings purchasing and data integration together, but neither company gave an availability date.
The commercial arrangement goes beyond making Snowflake available on Oracle’s infrastructure. Customers will purchase, provision and consume the service directly through Oracle. Oracle will also manage pricing, discounts and billing, giving customers a single commercial relationship for Snowflake on OCI.
Oracle CEO Clay Magouyrk framed the arrangement around giving customers more choice while simplifying deployment, management and payment. Snowflake CEO Sridhar Ramaswamy emphasized the other side of the partnership: making Oracle customers’ data a foundation for AI, with governance and security.
The technical pitch is to put Snowflake’s analytics and AI capabilities closer to business data held in Oracle services. Supported sources include Oracle Fusion Cloud Applications, Oracle NetSuite, Oracle Autonomous AI Database, MySQL HeatWave and Oracle NoSQL Database. The scope includes both business applications and database services.
Supported integrations are intended to provide native data transfers, reducing the need for custom pipelines—the connections teams build to move data between systems. Oracle and Snowflake say this will speed the use of enterprise data for reporting, data engineering, machine learning and AI insights.
A separate cost claim concerns where those transfers happen. The companies say moving data within OCI will reduce movement between clouds and the associated egress charges, or fees for sending data out. That claim concerns data movement, not the total price of using Snowflake.
The planned service is also designed to preserve customers’ control over data access, use and governance while they use Snowflake alongside enterprise data in OCI.
Oracle’s future-product disclaimer says the announcement outlines general product direction and should not be relied on for purchasing decisions. It is not a commitment to deliver functionality. Development, release, timing and pricing may change at Oracle’s discretion. Snowflake likewise identifies integration, interoperability and availability on third-party platforms as forward-looking statements subject to risks and uncertainty.
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