Oracle, Microsoft Buddy Up to Grab Once-Disparaged Cloud
Here's what is at play here from my point of view. Oracle has seen essentially flat revenues for the past two quarters and after initially denying that the cloud would be a big deal, the company is trying to make up for lost traction. Microsoft is a big boat, but the boat has turned to embrace cloud computing with the same fervor it found for the Internet after missing that big new thing back in the 1990s. While it is true that the embrace of cloud computing in the enterprise is still in the early revenue stages for these companies, that does not mean that CIOs and technology managers are not now deciding which cloud architectures will become the fundamental infrastructures for their companies. Traditional vendors are rushing to be seen as cloud supporters. Meanwhile, the stalwart cloud computing companies and startups are scoffing at the older vendors contending that companies that made their living selling software in boxes and living large on service revenues cannot suddenly become cloud players. Instead, they contend that customers who were once locked into proprietary boxes are determined not to get trapped again. Customers who were once too reluctant to embrace the cloud as those cloud capabilities did not have the security, privacy and compliance features required are now finding their traditional vendors championing the cloud as just the place to run their businesses. The Microsoft/Oracle agreement may be the latest and biggest example of enemies becoming cloud friends. It remains to be seen how long they remain friends, but this game has a long way to play yet.
Eric Lundquist is a technology analyst at Ziff Brothers Investments, a private investment firm. Lundquist, who was editor in chief at eWEEK (previously PC WEEK) from 1996-2008 authored this article for eWEEK to share his thoughts on technology, products and services. No investment advice is offered in this article. All duties are disclaimed. Lundquist works separately for a private investment firm, which may at any time invest in companies whose products are discussed in this article and no disclosure of securities transactions will be made.