Automatic Storage Management allows Oracle databases to use disk storage that is managed as an integrated cluster file system. It provides functions like striping, mirroring, and rebalancing of data across storage disks. The document outlines new features in Oracle Exadata and Automatic Storage Management including Flex ASM, which eliminates the requirement for an ASM instance on every server, and Flex Disk Groups, which provide file groups and enable quota management and redundancy changes for databases. It also discusses enhancements to disk offline and online operations and rebalancing.