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Microsoft and Oracle Team Up on Cloud Services to Take on Amazon

6/30/2019

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Microsoft and Oracle recently said they reached an agreement to make their two cloud computing services work together with high-speed links between their data centers, targeting significant business users and uniting against cloud computing leader Amazon Web Services. 

The two companies said the high-speed link between their data centers would start with facilities in the eastern United States and spread to other regions. They will also work together to let joint users login to services from either company with a single user name and get tech support from either company. 

The move comes as both Oracle and Microsoft are courting large businesses and government customers considering moving computing tasks currently handled in their own data centers to cloud providers. 

“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,” Microsoft’s cloud chief Scott Guthrie said in a statement. 

AWS, the largest cloud computing provider, is encroaching on many of those customers, including in Oracle’s historical stronghold in the database market. 

“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,” Don Johnson, executive vice president of Oracle’s cloud infrastructure unit, said in a statement. 

Microsoft has previously inked a deal with German software maker SAP SE and Adobe to make their services work better together. 

Ed Anderson, a Gartner research analyst, said the move was a clear “jab” at AWS, especially for Oracle. “It’s no secret that Oracle views AWS as a major competitor in the database market,” he said. 

Anderson also said there remained some unanswered questions about the deal, such as whether customers would face data transfer fees for moving large amounts of information back and forth between services. 

But overall, Anderson said the move would likely benefit Microsoft and Oracle by helping their pitch to large businesses already using services from both. 
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“It’s a great way for both companies to be able to hitch their cloud offerings together,” Anderson said.

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    Rick Richardson, CPA, CITP, CGMA

    Rick is the editor of the weekly newsletter, Technology This Week. You can subscribe to it by visiting the website.

    Rick is also the Managing Partner of Richardson Media & Technologies, LLC. Prior to forming his current company, he had a 28-year career in technology with Ernst & Young, the last twelve years of which he served as National Director of Technology.

    Mr. Richardson has been named to the "Technology 100"- the annual honors list of the 100 key achievers in technology in America. He has also been honored by the American Institute of CPAs with two Lifetime Achievement awards and a Special Career Recognition Award for his contributions to the profession in the field of technology.

    In 2012, Rick was inducted into the Accounting Hall of Fame by CPA Practice Advisor Magazine. He has also been named to the 100 most influential individuals in the accounting profession in America by Accounting Today magazine.

    In 2017, Rick was inducted as a Marquis Who’s Who Lifetime Achiever, a registry of professionals who have excelled in their fields for many years and achieved greatness in their industry.

    He is a sought after speaker around the world, providing his annual forecast of future technology trends to thousands of business executives, professionals, community leaders, educators and students.

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