The world's largest software maker
) entered into a strategic partnership enabling customers to run
Oracle software on Windows Server Hyper-V and Windows Azure.
Financial aspects of the deal were not disclosed by either
Through this partnership, Oracle will support its software
which includes Java, Oracle Database and Oracle WebLogic Server
on Microsoft's Windows Server Hyper-V and Windows Azure. On the
other hand, Microsoft will offer Oracle's software to its Windows
Azure customers. Further, Oracle will make its Linux software
available to Microsoft's cloud computing customers.
The hybrid cloud offering will provide more choice and
flexibility to customers. Now both the tech giants will be able
to provide solutions for Oracle applications, middleware and
databases. The partnership will allow both the tech giants to
compete effectively with local cloud-based software
Windows Azure is Microsoft's cloud computing platform for
building, deploying and managing applications and services
through a global network of managed datacenters. Windows Azure
core offerings include Media Services, Mobile Services, Cloud
Services, Virtual Machines, Websites and Big Data. It competes
) cloud computing platform Amazon Web Services (AWS) and OpSource
Cloud Computing Services.
According to Gartner, the public cloud market may jump 18.5%
to $131.0 billion in 2017 from $111 billion in 2012. Microsoft,
with its solid portfolio and this partnership with Oracle should
be able to tap this opportunity.
The company is expanding Windows Azure internationally, which
represents a significant investment in the company's cloud
strategy. The cloud market looks attractive and given the slump
in the PC market and its struggle on the desktop and mobile
fronts, it is important for the company to increase focus on
emerging segments such as mobile hardware and the cloud.
Microsoft remains one of the best positioned software vendors,
given its wide range of products, emerging markets strength,
continued technology deployment at data centers and growth in
cloud computing. We believe that Microsoft's current investments
are supported by its strong balance sheet and expect these to
drive the next growth phase, improving prospects of market share
Microsoft reported revenues, excluding deferrals, of $21.46
billion in the second quarter of fiscal 2013, up 34.0%
sequentially and 2.7% from last year, in line with our estimates.
All except the Entertainment & Devices segment grew both
sequentially and from the year-ago quarter.
Currently, Microsoft has a Zacks Rank #3 (Hold). Another
technology stock that has been performing well is
) carrying a Zacks Rank #2 (Buy).
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