Larry Ellison has effectively merged his cloud services with that of Salesforce.
Oracle has brought Salesforce.com into the fold, with the two companies setting aside differences to enter a nine-year partnership and integrate their cloud offerings.
The deal comes one day after Oracle clinched a cooperation deal with Microsoft.
Salesforce chairman and chief executive Marc Benioff and Oracle chief executive Larry Ellison have previously disagreed over rival definitions and strategies for cloud computing.
Now the two companies are effectively merging their cloud offerings across all three tiers – software as a service, platform as a service and infrastructure as a service.
The company plans to standardise on the Oracle Linux operating system, Exadata engineered systems, the Oracle Database and Java Middleware platform. Salesforce software will be integrated into Oracle’s Fusion Human Capital Management and Financial Cloud.
“Larry and I both agree that Salesforce.com and Oracle need to integrate our clouds,” Benioff says.
“When customers choose cloud applications they expect rapid low-cost implementations; they also expect application integrations to work right out of the box – even when the applications are from different vendors,” Ellison adds.
The deal could help Oracle sell its Exadata mainframes as Salesforce.com had previously used Dell servers. The growth of cloud computing has disrupted the traditional server market and is likely to be one factor behind recent news that IBM would be slashing 1500 jobs in Australia.
Meanwhile, on Tuesday (Monday US time), Microsoft and Oracle announced a partnership that means Oracle will certify and support its software on Microsoft’s virtualisation platform Windows Server Hyper-V or in Microsoft’s cloud environment Windows Azure.
Microsoft announced in May that it would open two data centres in NSW and Victoria to make Australia a “major region” for Windows Azure cloud computing. Oracle has also expanded its local cloud offering, opening a second data centre in Sydney in January.