Speaking at Oracle‘s CloudWorld conference in Tokyo this Thursday, Executive Chairman and CTO Larry Ellison announced what will be the company’s 22nd data centre.

Mr Ellison explained that a Japanese expansion was due to high demand from custumers for Oracle’s cloud-based applications, platform technologies, and infrastructure.

Several companies around the world are looking to move to cloud computing, but face a range of issues including location of services and security.

Oracle’s cloud service is currently used by over 60 million people who run billions of transactions on a daily basis.

Mr Ellison said: "It’s gone from an idea to a multibillion-dollar [run rate] business in the blink of an eye, and growing very rapidly."

The exponential growth of the enterprise also came down to regional legal requirements that establish how users can and should handle data sets.

For example, in Sweden companies are legally banned from collecting data on employees’ gender, therefore systems serving the Nordic country should not come included with "male" or "female" option fields.

The CTO further explained that the company’s investments in the last decade exposed a fundamental shift in the large-business computing market.

Mr Ellison said: "Taking an old application and moving it into someone else’s data centre is hosting — not really the cloud.

"You can call it cloud if you like, but you’re kidding yourself, because you won’t get the same cost benefits. It will not run on your Smartphone.

"It’s a new world."

In a recent interview with Business Today, Shawn Price, Senior VP of Oracle said the group would be the world’s largest cloud company in the future.