A week ago, Salesforce and Oracle were two of the warringest IT companies in the world, and now they have officially announced a nine year deal to pair each other's cloud offerings.
Poor Economy Hammering IT Giants
Oracle had said it would be rolling out partnerships with Microsoft, Netsuite and Salesforce in June when it released its Q4 financial earnings, and now all that is left is an official Netsuite unveiling. This week, Oracle and Microsoft announced the details of their perhaps even more surprising partnership, and now we have the official word on the Salesforce deal.
Salesforce already relies on Oracle databases, and Larry Ellison, Oracle CEO was an early investor in Salesforce, but the two companies had been in an ongoing sparring match that may now be a thing of the past. It's not really that unusual for tech companies to partner on some projects, but the weight of these Oracle deals is quite eye opening.
There were no financial numbers announced in this latest deal, but the nine year plan is for Salesforce to continue relying on Oracle databases while Oracle will integrate Salesforce software with its Fusion HCM and Financial Clouds. Also, Salesforce.com will standardize on the Oracle Linux operating system, Exadata systems, Oracle Database, and Java Middleware platform.
The deal assures businesses will simply be able to do more with both systems, a situation that is obviously hoped will bolster the bottom line of the two. Oracle's Q4 financials were flat, and while its cloud operations performed fairly well, it is but a tiny portion of the company's overall stack.
"Salesforce.com's CRM integrated with Oracle’s Fusion HCM and Financial Cloud is the best of both worlds: the simplicity of Salesforce.com combined with the power of Oracle," Marc Benioff, Salesforce CEO said in a statement.
Take it to the Cloud
Despite the soap opera act between Ellison, and former Oracle executive Benioff, the two companies seemingly do need each other, at least strategically, during the transition to the cloud. At the end of the nine year deal, who knows where the two companies will stand, but in the interim, it's the customer who will see the benefits.
As with most enterprise companies, a constant challenge is to move quickly, something cloud enabled software most certainly needs to do. Together, Oracle and Salesforce can allow customers added flexibility when they need it most, so there seems to be little downside to the deal.
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