Microsoft Corp said on Monday it would support Oracle Corp software on its cloud-based
platforms, a tie-up aimed at improving the rivals' chances against nimbler
Web-based computing companies chipping away at their traditional businesses.
The two industry leaders have
competed for decades to sell technology to the world's largest companies. But
they face growing pressure from new rivals selling often-cheaper services based
in remote data centers, and they are rushing to adapt.
The two companies have long
collaborated out of the public eye to meet customers' needs, Microsoft Chief Executive Steve Ballmer said on a
conference call. "In the world of cloud computing, I think
behind-the-scenes collaboration is not enough."
The tie-up does not resolve
major competitive challenges the two tech pioneers face in the cloud market,
but their cooperation was seen as a symbolically important step.
"Is it a game changer
today? Not at all. It shows both companies are serious about their cloud
endeavors. The fact that historical competitors are now friends speaks to how
big the cloud opportunity is. And it opens up potential avenues of growth down
the road," said Daniel Ives, an analyst at investment bank FBR.
Under the agreement, customers
will be able to run Oracle software on Microsoft's Server Hyper-V and on
Windows Azure platforms, the companies said.
