Microsoft said in Monday that the company would support Oracle software on its cloud platform

Source: Internet
Author: User
Keywords Microsoft Oracle

Microsoft said in Monday that it would support Oracle software on its cloud platform, a partnership aimed at raising the odds of confrontation between the two rivals and web-based computing companies that are eating away at Microsoft and Oracle's traditional businesses.

Over the past few decades, Microsoft and Oracle, two of the industry's leading companies, have been competing to sell technology to the world's largest companies, but now two companies are increasingly under pressure from new rivals selling remote data center services that are often cheaper.

Steve Ballmer, Microsoft's CEO, Ballmer that two companies have long worked outside the public eye to meet user needs, but "in the cloud computing world, I think it's not enough to have a behind-the-scenes partnership." While the partnership fails to address the major competitive challenges facing Microsoft and Oracle in the cloud market, it is still seen as an important landmark move.

Daniel Ives, an investment banker FBR analyst Daniel Avis, said: "Will this partnership change the rules of the game today? That is not possible, but it shows that both companies are serious about doing cloud business." The two rivals who have been competing with each other in the past have now become friends, and this is a good illustration of how much chance there is in the cloud market. In addition, the partnership has opened up potential growth paths for two companies. ”

Under the Protocol, users will be able to run Oracle software on Microsoft server Hyper-V and Windows Azure platforms. Microsoft will provide Windows Azure users with services such as Oracle Java, database and WebLogic server, and Oracle will also provide Linux to Windows Azure users, two companies said in a statement.

Industry insiders point out that the deal means Microsoft will actually promote Linux and java-based software, which is a long-standing competitor to its Windows platform. But no matter what software the data Center service uses, Microsoft will receive revenue from users who pay for those services.

Oracle's earnings last week showed the company's fourth-quarter software sales fell short of analysts ' expectations and pushed its share price tumbling. Investors are concerned that Oracle may struggle to compete with software providers such as and Workday and Amazon. Amazon has become one of the key practitioners of cloud computing infrastructure.

Microsoft Cloud Computing Services Azure failed to catch up with Amazon Cloud services AWS (Amazon Network Service), which has opened a new path in the field of flexible online computing services. Over the past 5 years, Amazon's share price has risen 237%, 105%. Oracle's shares rose 38% in the same period, with Microsoft's shares up 21%.

Oracle's rivalry with Microsoft dates back decades, with the personal confrontation between the two companies ' respective co-founder Ellison Larry Ellison and Bill Gates, particularly striking. In 1995, Mr. Ellison launched a high-profile plan to promote a low-cost competitive product of receptacle computer, but failed to succeed; In the late 1990s, Mr Gates aggressively attacked Oracle's core database business, with inexpensive SQL Servers gaining some market share, This made Ellison furious.

But in recent years, two companies have faced attacks from a wave of young companies, such as Workday and Salesforce, which charge a single subscription fee for software and support services that are far less profitable than Oracle's traditional offerings.

In a Thursday earnings conference call, Mr. Ellison said Oracle had reached an alliance with Microsoft and Salesforce and said he would release specifics this week.

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