Oracle is collaborating with Microsoft to bring a portion of its infrastructure to Microsoft Azure shortly after Oracle missed its Q1 2023 revenue expectations. This move follows a downbeat outlook that caused a significant drop in Oracle’s share price, marking its worst one-day performance in 21 years.
The unique offering, named Oracle Database@Azure (highlighted by the use of an “@” symbol), allows customers to access Oracle database services running on Oracle hardware within Azure data centers.
Oracle’s aim with Oracle Database@Azure is to combine its database product with the security, flexibility, and top-tier services offered by Azure, including services developed in collaboration with Microsoft’s AI partner, OpenAI.
During a joint press briefing with Microsoft CEO Satya Nadella, Oracle CEO Larry Ellison expressed excitement about physically relocating Oracle hardware and software into Azure data centers, effectively co-locating them.
While specific details about the offering are still limited, Oracle has stated that Oracle Database@Azure will offer “more options” for Oracle customers to transition their databases to the cloud, providing a “fully integrated” experience for deploying, managing, and using Oracle database instances within Azure.
At launch, Oracle Database@Azure will support various existing Oracle database services, such as Oracle Exadata Database services, Oracle Autonomous Database services, and Oracle Real Application Clusters. It will also come with a “joint support” guarantee from both Oracle and Microsoft to resolve issues related to mission-critical workloads.
Customers can acquire Oracle Database@Azure through the Azure Marketplace and leverage their existing Oracle Database licenses. Oracle will directly operate and manage its services within Microsoft’s global data centers, starting with regions in North America and Europe.
Microsoft’s Satya Nadella noted that many enterprise applications with Oracle Databases may have front-end middleware hosted elsewhere, and this collaboration aims to provide customers with additional options for their cloud migration efforts.
Despite Oracle’s declining market share in the database industry and increased competition from open-source alternatives like PostgreSQL, MongoDB, and MySQL, Oracle hopes that Oracle Database@Azure will help retain its customer base and potentially attract new ones.
Oracle’s recent strategic shifts, such as offering free database software for developers, reflect its efforts to adapt to changing market dynamics and retain its position in the industry. However, it remains to be seen whether this partnership with Azure will significantly impact its fortunes, especially considering the loss of significant customers like AWS and Salesforce in recent years.
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