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Oracle Partners with Microsoft, Salesforce.com and NetSuite but Still Looks Ugly.

28 Jun

After reporting disappointing numbers last week, Oracle’s Larry Ellison pre-announced a series of important and exciting partnerships with different cloud providers and hinted the names of Microsoft, Salesforce.com and NetSuite. As promised, this week Oracle announced three different partnerships with the aforementioned cloud providers. While this is, undoubtedly, a very interesting move on the Oracle side, I find hard to believe is will make a difference in their current position in the cloud market. Despite these partnerships, Oracle still looks very boring in the cloud!

The Microsoft Deal

The essence of these partnership, Oracle will certify and support Oracle software — including Java, Oracle Database and Oracle WebLogic Server — on Windows Server Hyper-V and in Windows Azure. Microsoft will also offer Java, Oracle Database and Oracle WebLogic Server to Windows Azure customers, and Oracle will make Oracle Linux available to Windows Azure customers.

My thoughts?

From a Windows Azure perspective I find hard to believe this deal will make any difference on WebLogic or Windows Azure situation. While Windows Azure has supported Java for a long time, the uptake hasn’t been great within the enterprise customer community. Windows Azure has been more appealing to traditional Microsoft shops while developers building Weblogic applications are not necessarily crazy about the cloud.

More importantly, this deal doesn’t help Weblogic to stop the migration of developers to competitive platforms

The Salesforce.com Deal

As part of this partnership, Salesforce.com plans to standardize on the Oracle Linux operating system, Exadata engineered systems, the Oracle Database, and Java Middleware Platform. Oracle plans to integrate salesforce.com with Oracle’s Fusion HCM and Financial Cloud, and provide the core technology to power Salesforce.com’s applications and platform. Salesforce.com will also implement Oracle’s Fusion HCM and Financial cloud applications throughout the company.

My thoughts?

Very important deal for Oracle! However, this feels like Salesforce.com helping out Oracle more than anything else. In terms of the impact, it’s very hard to tell. Salesforce.com already runs on Oracle software and it’s difficult to imagine impactful the integration between the two SaaS platforms will be. Most enterprises require high level of customizations in order to implement these integrations.

The NetSuite Deal

Under the partnership, announced Wednesday, NetSuite will integrate its enterprise resource planning (ERP) software, which companies uses to manage various parts of their day-to-day business, with Oracle’s human resources (HCM) apps.

My thoughts?

NetSuite customer base is mostly composed for premium-medium size business. I am not really certain how popular HCM would be within that community that are not the typical Oracle buyer.

 

While all three deals represent a major change from Oracle’s traditional “take no prisoners” approach, it’s really hard to see any of these strategic alliances moving the needle for Oracle’s position in the cloud space. Regardless, it’s very good to see these level of collaboration between traditional rivals. Time will tell….

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Posted by on June 28, 2013 in Uncategorized

 

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