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Microsoft and Oracle expand their cloud partnership with Oracle Database@Azure, letting customers run Oracle workloads natively in Azure data centers

Steven Rosenbush / Wall Street Journal :

Wall Street Journal Steven Rosenbush

Context & Ripple Effects

Microsoft and Oracle had already linked U.S. data centers in a 2019 cloud interconnection partnership aimed at making their services work together. Database@Azure moves that relationship closer to the customer workload, rather than merely connecting separate clouds.

The arrangement matters because it gives enterprises using Oracle databases a more integrated route to Azure infrastructure. Later coverage of Oracle Database@AWS shows this is part of Oracle extending its database access across rival cloud environments.

First-order effects

  • Oracle database customers can run supported Oracle workloads natively in Azure data centers, reducing the need to operate those workloads as a separate cloud deployment.
  • Microsoft gains a more direct path to Azure consumption from Oracle-centric enterprise accounts, while Oracle keeps its database offering central to those customers' cloud architectures.

Second-order effects

  • The partnership makes multicloud deployments more practical for Oracle customers, increasing pressure on cloud providers to accommodate established enterprise software rather than require full-stack migration.
  • Oracle's later AWS offering suggests that rival infrastructure platforms may compete for Oracle workloads through partnership terms and integration quality, not only by promoting substitute databases.

Third-order effects

  • If such arrangements proliferate, cloud competition may shift from exclusive platform ecosystems toward interoperable combinations of infrastructure and specialist software.
  • The pattern could reduce the leverage of a single cloud vendor over enterprise database placement, while increasing Oracle's role as a cross-cloud software layer.

The trend: Major cloud providers are increasingly using cross-cloud integrations to win enterprise workloads that cannot easily be displaced from incumbent software stacks.

Discussion

  • @economyapp @economyapp on x
    Microsoft & Oracle deepen their partnership. 🤝 Seamless database migration to Azure. ☁️ Azure becomes an exclusive host for key Oracle services. 🌐 430k+ Oracle customers unlock Microsoft Cloud's potential for critical databases. $MSFT $ORCL [image]
  • @patrickmoorhead Patrick Moorhead on x
    So its Oracle “Database@Azure.” I talk about the 75-90% of enterprise data still on-prem. This alliance will speed up data in the public cloud. This should help applying #AI to data $ORCL $MSFT https://investor.oracle.com/ ... [image]
  • @quinnypig Corey Quinn on x
    Smart move. Cloud egress margins are nearly the only thing stopping this kind of architecture from being widespread.
  • @microsoft @microsoft on x
    Explore how our expanded partnership with @Oracle will help customers seamlessly connect their data sources and reduce common hurdles when bringing workloads to the cloud. https://blogs.microsoft.com/ ...
  • @coreysanderswa Corey Sanders on x
    With our focus on empowering customers to create value in the cloud, our partnership with Oracle helps meet the evolving needs of organizations. We're bringing together the best of Oracle and Microsoft by making OCI database services available in Azure. https://blogs.microsoft.co…
  • @azure @azure on x
    🤝 We're partnering with @Oracle to accelerate cloud innovation for mission-critical workloads. Learn how we're bringing OCI database services to Azure datacenters: https://news.microsoft.com/... [image]
  • @satyanadella Satya Nadella on x
    Our expanded partnership with @Oracle will make Microsoft Azure the only other cloud provider to run Oracle's database services.
  • @centrilogic @centrilogic on x
    Another great update for organizations that use Azure and OCI as part of their multicloud landscape. Today's announcement means that it's now easier for customers to seamlessly connect Azure services with the very latest Oracle Database technology.
  • @donal888 Don Clark on x
    Larry Ellison visits Redmond, Wash. for the first time ever to discuss more cooperation with Microsoft, which involves moving Oracle hardware and software into Microsoft data centers
  • @oracle @oracle on x
    Live from Redmond, WA! @LarryEllison joins @SatyaNadella to give an update on our ongoing partnership with @Microsoft. https://twitter.com/...
  • @danielnewmanuv Daniel Newman on x
    Strong alignment between @Microsoft and @Oracle to collaborate on bringing the best of $MSFT and $ORCL infrastructure to meet the opportunity of #AI and the needs of IT. Not a pair you often see together. Usually seen as fierce competitors, but a win for mutual customers. [image]
  • @msftnews @msftnews on x
    Join us live from Redmond at 1 p.m. PT for a partnership update from Satya Nadella, Chairman and CEO of Microsoft, and Larry Ellison, Chairman of the Board and Chief Technology Officer of Oracle. https://news.microsoft.com/... [video]