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Microsoft, Oracle and Cloud Identity Interoperability

Microsoft and Oracle Link up their Clouds to take on AWS

Michael K. Spencer
Jun 6 · 3 min read

Microsoft is waging a war of many partnerships in a hope to take on AWS.

Oracle and Microsoft are courting large businesses and government customers considering moving computing tasks currently handled in their own data centers to cloud providers.

As TechCrunch points out, the new alliance announced in early June, 2019 will see the two companies connect their clouds over a direct network connection so that their users can then move workloads and data seamlessly between the two. This partnership goes bit beyond just basic direct connectivity and also includes identity interoperability.

They will also work together to let joint users log into to services from either company with a single user name and get tech support from either company. That’s truly fascinating.

Customers of the two will soon be able to migrate and run mission-critical enterprise workloads across Microsoft Azure and Oracle Cloud, thanks to a new cloud interoperability partnership between the two companies. As the cloud matures these sorts of partnerships will become more common.

For Oracle, it’s a question of survival. For Azure, it’s a question of enhancement. I also feel this kind of alliance is relatively unusual between what are essentially competing clouds, but while Oracle wants to be seen as a major player in this space, it also realizes that it isn’t likely to get to the size of an AWS, Azure or Google Cloud anytime soon.

Enterprises will be able to seamlessly connect Azure services such as analytics and AI to Oracle Cloud services like Autonomous Database. I mean, that’s pretty cool, right?

The Cloud Space is Competitive but AWS is King

AWS, the largest cloud computing provider, is encroaching on many of those customers, including in Oracle’s historical stronghold in the database market. Companies like Oracle and IBM are no longer really in the mix as much as they would like to be.

Meanwhile Google, Azure and Salesforce are really growing well.

Together, Azure and Oracle Cloud now provide customers with a one-stop shop for all of the cloud services and applications they need to run their entire business. Microsoft is running a battle of many B2B partnerships, though it’s still not likely to catch AWS any time soon.

Microsoft claims that 95% of the Fortune 500 are using Azure. The hybrid Cloud is becoming significantly more important. I’ll spare you the various PR quotes from the executives. Still, interoperability is exciting. For example, you could run Oracle E-Business Suite or Oracle JD Edwards on Azure against an Oracle Autonomous Database running on Exadata infrastructure in the Oracle Cloud.

Unified identity is rather important. In practice this means the two will also offer unified identity and access management through a single sign-on experience and automated user provisioning.

AWS vs. Azure

  • AWS saw $25.7 billion in revenue in 2018, the highest among all cloud providers. It also boasted a 47% annual growth.
  • AWS had a seven-year head start before Microsoft and Google entered the public cloud space. As a result, AWS services are by far the most evolved. Seven years isn’t just first-mover advantage, it’s a lifetime of expertise and deep features.
  • In their 2018 annual report, Microsoft reported $23.2 billion in commercial cloud revenue, a value that pools together the revenue of several cloud properties — Azure being one of them. Azure’s finances are therefore not as transparent. Azure’s revenue is bundled with Office 365 on its 10-K financial report, which is frankly very deceptive.
  • Analysts estimate actual Azure revenue at around $13.5 billion in 2018, which represents an incredible 82% annual growth. Azure is realistically around half as big as AWS.
  • Azure is still significantly behind AWS in market share at 13.7%. This isn’t even a real duopoly yet in Cloud Computing.
  • Google’s cloud revenue is estimated to be around $6.8 billion, representing annual growth of 94%. So Azure must compete harder to keep its steady gains up. Hence all of these somewhat wild partnership announcements.

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Michael K. Spencer

Written by

Blockchain Mark Consultant, tech Futurist, prolific writer. LinkedIn: michaelkspencer

UtopiaPress

Discovering the optimal lifestyle of the future.