Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) announced the expansion of their partnership on Wednesday, unveiling Oracle Database@Azure, a platform that allows customers to directly access Oracle database services running on Oracle Cloud Infrastructure (OCI), deployed in Azure datacenters. This new development aims to combine the availability of Oracle Database on OCI with the security and scalability provided by Azure.
The expanded partnership will offer customers new ways to leverage data with Azure OpenAI Service, enabling more efficient movement of Oracle databases to the cloud. This will allow access to new pricing and performance, the ability to build cloud-native apps, and improved latency and security. Several joint customers including Fidelity Investments, PepsiCo (NASDAQ:PEP), Vodafone (NASDAQ:VOD), and Voya have already expressed support for this announcement.
Satya Nadella, Chairman and CEO of Microsoft, emphasized the potential impact of this collaboration. He stated that it presents a real opportunity to help organizations bring their mission-critical applications to the cloud and transform their business with the next generation of AI. Nadella also noted that this expanded partnership would make Microsoft Azure the only other cloud provider to run Oracle's database services, unlocking a new wave of cloud-powered innovation.
Microsoft, has been consistently profitable over the last twelve months, according to InvestingPro data. The company operates with a high return on assets and has maintained dividend payments for 21 consecutive years, as noted in InvestingPro Tips. It's worth noting that Microsoft's market cap is a staggering 2.32T USD, with a P/E ratio of 32.2, showcasing the company's significant standing in the market.
On the same day, Oracle introduced Compute Cloud@Customer, which allows organizations to develop, deploy, secure, and manage workloads using the same software stack as OCI in implementations as small as a single rack. The platform enables organizations to run applications and middleware on OCI computing, storage, and networking services with flexible virtual machine configurations in their data centers.
Edward Screven, Chief Corporate Architect at Oracle, highlighted that users want a consistent experience regardless of where services are running. He added that Oracle continues to invest in its distributed cloud strategy with the launch of Compute Cloud@Customer. With this option, customers can more easily achieve their strategic business goals in the cloud while meeting data residency requirements and accessing high-performance connections to latency-sensitive applications and existing data centers.
Oracle, has also been profitable over the last twelve months and has raised its dividend for 10 consecutive years, according to InvestingPro Tips. It's also worth noting that Oracle's market cap stands at 286.59B USD, with a P/E ratio of 30.25, indicating its substantial presence in the industry.
Compute Cloud@Customer can be easily expanded to meet the needs of organizations with different distributed cloud implementation scenarios. It starts with 552 processor cores and 150 TB of usable storage and can scale compute and storage independently to over 6,000 processor cores and 3.4 PB of storage capacity.
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