Following disappointing Q1 2023 revenue results and a pessimistic outlook, Oracle has joined forces with Microsoft to co-locate a portion of its infrastructure in the Azure cloud. The partnership, called Oracle Database@Azure, offers customers access to Oracle database services running on Oracle hardware and deployed in Azure data centers. This collaboration aims to combine the strengths of Oracle’s database product with the security, flexibility, and top-notch services provided by Azure.
Oracle CEO Larry Ellison expressed his excitement about moving Oracle hardware and software into Azure data centers during a joint press briefing with Microsoft CEO Satya Nadella. They discussed the co-location of the hardware and software within the Azure data center, which will enable customers to benefit from a seamless and integrated experience for deploying, managing, and utilizing Oracle database instances.
The details of Oracle Database@Azure are still relatively vague, but Oracle mentioned in a press release that the offering will provide customers with more options to migrate their databases to the cloud. The initial launch will support various existing Oracle database services, including Oracle Exadata Database services, Oracle Autonomous Database services, and Oracle Real Application Clusters. Additionally, Oracle and Microsoft will jointly guarantee support for resolving any mission-critical workloads.
Customers will be able to purchase Oracle Database@Azure through the Azure Marketplace and utilize their existing Oracle Database licenses. Oracle will operate and manage its services directly within Microsoft’s data centers worldwide, starting with regions in North America and Europe.
Nadella highlighted that this collaboration addresses customer demand for additional options and will likely accelerate the migration to the cloud. However, Oracle faces challenges as its market share in the database industry has declined significantly in recent years. Despite Oracle’s reputation for lock-in tactics, the rise of numerous database software options and subscription-based services for open source solutions has reduced Oracle’s dominance.
Nevertheless, Oracle Database@Azure, coupled with efforts such as offering free database software for developers, may help Oracle retain and attract customers. However, competing with major players like AWS and Salesforce, which Oracle has lost as customers in the past, might prove to be a formidable challenge.
– [Source 1]