Microsoft, Oracle Join Forces On Cloud Services

Microsoft Corp. (NASDAQ: MSFT) and Oracle Corp. (NYSE: ORCL) have joined forces to make their two cloud computing services compatible with each other so customers can use both seamlessly. The new partnership enable customers to run one part of a workload within Microsoft Azure and another part of the same workload within the Oracle Cloud. According to a news release from the companies, enterprises can now seamlessly connect Azure services, like Analytics and AI, to Oracle Cloud services, like Autonomous Database.

The two companies said the high-speed link between their data centers would start with facilities in the eastern United States. Customers looking to connect Azure and Oracle Cloud can do so first in Ashburn and Azure US East. The companies plan to expand the functionality to additional regions in the future.

Microsoft’s cloud chief Scott Guthrie said in a statement, “With Oracle’s enterprise expertise, this alliance is a natural choice for us as we help our joint customers accelerate the migration of enterprise applications and databases to the public cloud.” The companies also plan to let joint users log into to services from either company with a single user name and to let them get tech support from either company.

The tie up is sure to be attractive to large businesses and government customers considering moving computing tasks from their own data centers to cloud providers. Don Johnson, executive vice president of Oracle’s cloud infrastructure unit, said, “With this alliance, our joint customers can migrate their entire set of existing applications to the cloud without having to re-architect anything, preserving the large investments they have already made.”

The move will also help Microsoft and Oracle better compete with Amazon.com’s Amazon Web Services. Amazon Web Services was the top provider of cloud infrastructure services last year, capturing 31.7 percent market share by the count of research firm Canalys. Its worldwide sales grew 47 percent year-over-year reaching $25.4 billion. Azure was second with 16.8 percent market share and $13.5 billion in cloud infrastructure revenue. Alphabet’s Google Cloud was third with 8.5 percent market share.

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