Microsoft And Oracle Team Up To Take On Cloud Leader Amazon Services

Global Cloud Computing Industry
Attendees at Amazon.com Inc annual cloud computing conference walk past the Amazon Web Services logo in Las Vegas (Photo: Reuters / Salvador Rodriguez)

The US' cloud computing industry will likely never be the same again as industry rivals Microsoft and Oracle are now reportedly considering the idea of joining forces. The partnership between two of the largest cloud computing companies is likely a move to unseat Amazon Web Services from the top position, which it has been holding for the past few years.

Oracle and Microsoft announced last week that they are planning to link their respective cloud computing services to provide a much more comprehensive product to their existing clients. The services, called Microsoft Azure and Oracle Cloud, will reportedly be linked through a direct high-speed network that will essentially allow customers from both companies to utilize both companies' cloud databases and services.

Customers can run their software programs and store data on whichever cloud node is closest or best supports their intended use. Customers from both companies can also take advantage of the tools and services that were otherwise not available to them from being subscribed to just one provider. The linked services are scheduled to roll out in the United States very soon, with plans to expand to other countries in the future.  

According to both companies, the linking of their respective services should significantly improve user's experience for both their customers. The merger of their resources may also allow the companies to take on the current market leader, Amazon, in supplying key businesses such as government contracts and firms that use multiple cloud platforms.

Oracle will be getting the most benefit out of the deal, given that Microsoft is currently the second largest cloud provider in the world. Microsoft's Azure service currently holds around 15 percent of the market. Meanwhile, Amazon leads the pack by a large margin as the leader in the global cloud business with a 30 percent market share. Right behind Microsoft, is IBM cloud at third place and Google Cloud in fourth place.

The current rankings are however expected to change in the coming months given how much cloud companies are investing in innovation and expansion. Google just acquired data analytics firm Looker for $2.6 billion to enhance its data visualization capabilities. Meanwhile, Salesforce just acquired data visualization software company Tableau for pretty much the same reasons.

The recent acquisitions are a clear indication that global cloud computing companies are now realizing the importance of handling big data. The ability to handle and make sense of big data will become vital for companies given how it would allow them to take advantage of consumer behavior and trends, among other information. With the advent of faster internet networks and social media, data is now easily available.

The company that can understand these types of data will undoubtedly outperform competitors that don't use the same strategy.  

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