Oracle Corp. (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) Corp. officially announced a deeper interoperability between their clouds, enabling customers to run projects on both platforms with greater ease. In the past, many cloud providers attempted to lock customers into a single platform, but as the cloud has become more integral to business operations, this is no longer possible. Customers typically utilize multiple clouds, and cloud platform providers like Microsoft (NASDAQ:MSFT) and Oracle (NYSE:ORCL) are adjusting to this multi-cloud environment. As shown in a May 2021 report by Boston Consulting Group, roughly two-thirds of enterprise-level businesses utilize multiple clouds.
At Microsoft (NASDAQ:MSFT) Inspire, an online event for Microsoft (NASDAQ:MSFT) partners, the Oracle (NYSE:ORCL) Database Service for Microsoft (NASDAQ:MSFT) Azure was announced today. It expands upon a 2019-introduced integration known as Oracle (NYSE:ORCL) Interconnect for Microsoft (NASDAQ:MSFT) Azure. This earlier step connected Oracle (NYSE:ORCL) Cloud Infrastructure to the cloud infrastructure of Microsoft (NASDAQ:MSFT) Azure. According to the companies, it required a considerable amount of effort and technical knowledge on the part of customers to make it work.
Clay Magouyrk, executive vice president of Oracle (NYSE:ORCL) Cloud Infrastructure, stated that over the last couple of years, they had had a lot of success with that, and they also got a lot of customer feedback. And one of the things that customers (said) was, ‘Hey, it’s great you are working together, but we really would like a more integrated experience.’ Corey Sanders, corporate vice president of Microsoft (NASDAQ:MSFT) Cloud for Industry and Global Expansion, said the ability to benefit from both clouds, and the flexibility, is a real win for customers.
The new service connects Oracle’s database service directly to the Azure cloud, thereby eliminating the need for custom development. An Oracle database user can quickly transfer data to the Microsoft (NASDAQ:MSFT) Azure cloud and access Microsoft (NASDAQ:MSFT) tools like Azure Synapse, which analyzes the data, according to the companies.
There are no charges associated with data transfer between the two cloud platforms; however, customers will pay for additional services, such as Azure Synapse and the Oracle (NYSE:ORCL) Autonomous Database that performs self-tuning and patching. The new service features a dashboard with single sign-on. This means that Oracle (NYSE:ORCL) customers who migrate workloads to Azure can continue to work in an Oracle-like environment, lowering the need for customers to learn new systems.
Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) interconnects are located in 11 Americas, Europe, and Asia facilities. According to the companies, this physical proximity permits a communication latency or delay of fewer than two milliseconds across cloud platforms.
The service has been made available early by Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) to several companies, including Santa Clara, California-based multi-cloud data management company Veritas Technologies LLC. (NASDAQ :VRTS)
Jane Zhu, the senior V.P. for corporate operations at Veritas, mentioned that the experience has been excellent, and many enterprise customers use Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT), and moving workloads, without this kind of integration, would take a lot of effort. Donald Feinberg, vice president, and distinguished analyst at researcher said Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) are absolutely unique in the way they are integrating now. “I think we will start to see other cloud vendors do the same thing,” he mentioned.
According to Synergy Research Group, Amazon.com (NASDAQ: AMZN) Inc.’s Amazon Web Services, Microsoft (NASDAQ:MSFT) Azure, and Alphabet Inc.’s Google Cloud accounted for 65 % of the $53 billion in global cloud-service expenditure in the first quarter of 2018. This is up from 52 % of global sales four years ago. Oracle, headquartered in Austin, Texas, reported in June that companywide revenue increased 5% to $11.84 billion in its fiscal fourth quarter, while total cloud revenue increased 19% year-over-year to $2.9 billion.
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