Oracle Exadata Cloud Service (ExaCS) Networking 

Before creating an instance of Oracle Exadata Cloud Service one needs to create a VCN and two Subnets namely Client Subnet and Backup Subnet.
While creating an instance of Exadata On-Cloud one should create a VCN first. A VCN is a contiguous block of IP addresses, represented in a CIDR format.
A VCN can further be divided into smaller parts called Subnets. We can choose the number of IP addresses we require in each subnet, depending on the configuration of the system.
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