The agreement will see Deutsche Bank upgrade its existing database systems and migrate the bulk of its Oracle Database estate to Oracle Exadata Cloud@Customer, an on-premises deployment option of the Oracle Exadata Cloud Service, to support applications that either will not move to the public cloud or may in the future.

Deutsche Bank says the move to consolidate existing critical applications on a single platform while complying with its data residency requirements will significantly reducing operational costs. Oracle’s service can run in Deutsche Bank’s current data centres as well as in future cloud co-location sites, minimising latency while supporting the shift of applications to the cloud.

The two companies have also agreed to form a joint innovation partnership, bringing together Oracle and Deutsche Bank engineering and technology teams to explore potential uses for data security technologies, blockchain, AI and analytics to shape the design of new financial products and services.

The deal support's the German bank's modernisation initiative, which last year saw it sign off off on a major contract with Google Cloud for the provision and joint development of cloud services.

“Data is fundamental to how we manage our operations, anticipate the needs of our customers and design new products and services. Our collaboration with Oracle to modernise our databases will play an important role in our overall technology transformation,” says Bernd Leukert, chief technology, data and innovation officer, Deutsche Bank. “Our applications supported by Oracle Exadata Cloud@Customer will benefit from a platform with the flexibility to adapt and scale critical services at speed, as well as derive better data insights. In the process, we will simplify and modernise our technology environment, save the bank significant costs and reduce energy consumption through consolidated servers.”