Microsoft Corporation (MSFT), Oracle Corporation (ORCL): Frenemies in the Cloud?

Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NASDAQ:ORCL) are not known as the best of friends in the tech sector. You would not expect Microsoft CEO Steve Ballmer to send a birthday care to Oracle’s Larry Ellison or vice versa. The companies have been direct competitors in several areas of tech, and they have competing languages – Microsoft is known for its .NET code, while Oracle made its name with Java. The are both in the server space, the on-site software market and the profitable SaaS (software-as-a-service) markets. They have each found their sweet spots in those markets, however, so they don’t necessarily compete directly.

Microsoft Corporation (MSFT)But it has been clear that these two companies have not liked each other over the years. So it seems quite odd that Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NASDAQ:ORCL) will actually be sharing the same teleconference Monday to announce something perhaps a little more odd – a partnership. Yes, between Microsoft and Oracle, not the two of them with another company. Just these two. A Kumbaya moment?

Well, maybe we won’t go that far – after all, Microsoft Corporation (NASDAQ:MSFT) head Ballmer is expected to be on the call, but Oracle Corporation (NASDAQ:ORCL) chief Ellison is not –  but certainly seems like technology like the cloud can serve to bring together mortal enemies for a common good. In this case, reports are that Microsoft and Oracle will be announcing a partnership that surrounds Oracle’s new cloud-based database knows as 12c. It seems pretty certain based on the executives on the call that this particular partnership will include the announcement of 12c supporting Windows Azure and/or its Cloud OS.

On the Oracle Corporation (NASDAQ:ORCL) conference call Thursday – following the release of the earnings report, which again missed estimates, the revenue missing by $250 million – Ellison alluded to the partnership when he said, “Next week we will be announcing technology partnerships with the most important, the largest and most important … companies in the cloud. They will be … committing to our technology for years to come. These partnerships I think will reshape the cloud and reshape the perception of Oracle technology in the cloud.”

Reportedly, Microsoft Corporation (NASDAQ:MSFT) is just one of the partnerships being announced in the next few days. Oracle Corporation (NASDAQ:ORCL) is also expected to announce similar agreements with Salesforce.com and NetSuite, among others. Give us your feedback on this alliance and how you think Oracle and Microsoft will fare  with this partnership in the comments section below.

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