Thursday, December 14, 2017

29 June 2013

Oracle Announcements with Saleforce, NetSuite, and Microsoft: Back to Focus on Infrastructure.The company missed its Q2 numbers and of course analysts worry and wonder whether Oracle is missing the cloud computing opportunity.

Posted in IT News

Oracle Announcements with Saleforce, NetSuite, and Microsoft: Back to Focus on Infrastructure.The company missed its Q2 numbers and of course analysts worry and wonder whether Oracle is missing the cloud computing opportunity.

Oracle hasn’t been getting a lot of respect lately. The company missed its Q2 numbers and of course analysts worry and wonder whether Oracle is missing the cloud computing opportunity.

Not so. This week Oracle signed three significant alliance agreements, both focused on providing core database technology and software integration with both SalesForce.Com and Netsuite, two of the fastest growing companies in cloud computing. And along with this, Oracle signed a similar agreement with Microsoft to enable Java developers to use Oracle tools for their application development, leveraging Microsoft’s cloud services with Oracle’s database and tools.

Let’s remember: Oracle is in the database and tools business. Any business relationship that encourages a fast-growing vendor to use Oracle’s tools and technology is a good thing for Oracle. And that’s what these relationships are all about.

Salesforce.com, one of the bellweather providers of cloud computing services (this company has reinvented the CRM market and created a huge wake which enables other cloud computing companies to grow), signed a 9 year agreement to use Oracle DBMS technology. And this is significant: Oracle’s DBMS business is huge, and upstart fast-growing companies like Workday (and also Google, Facebook, and LinkedIn) have learned how to use non-Oracle DBMS technology to grow.

In this move Oracle shows that it’s newest cloud database (Oracle 12c) is competitive, compelling, and a platform for growth. So not only does Oracle gain Salesforce as a major partner going forward, they can help convince hundreds of other new cloud vendors to standardize on Oracle’s open cloud computing services.

Yes, Oracle competes with Salesforce in applications. And yes, Salesforce does use Workday for its own internal applications. But these are small issues for Oracle. When a $2.8 billion vendor signs a 9 year agreement to use Oracle’s latest technology for its core platform, that’s a great thing for Oracle.

(By the way, another part of the agreement is a commitment for Salesforce and NetSuite to integrate its apps with Oracle’s cloud-based HR services. Time will tell how big this becomes, but remember Oracle acquired Taleo just a year or so ago, so the company already owns one of the largest online recruiting systems in the cloud. So this too has promise.)

Analysts are having a lot of fun arguing about what this means for Oracle’s applications business, whether or not Oracle will partner with Salesforce, and when and if Oracle will acquire NetSuite. These are fun things to speculate about: the real meat is that Oracle has further entrenched its core database and tools business among leaders in the cloud. And this is bullish for Oracle in the longrun.

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