azure / oracle azure

Why Oracle Chose Azure Over AWS: An Analysis

Why Oracle chose Azure over AWS.

The cloud computing landscape has witnessed numerous collaborations, but one that stands out is the partnership between Oracle and Microsoft’s Azure. Interestingly, Oracle collaborated with Azure over Amazon Web Services (AWS).

This decision has sparked curiosity in the tech community. In this article, we analyze five potential reasons behind Oracle’s choice.

1. Direct Competition with AWS

Oracle and AWS: Rivals in the Cloud Market

Oracle and AWS offer cloud infrastructure services, making them direct competitors in the cloud market. As a dominant player, AWS might represent a more significant competitive threat to Oracle than Azure.

Collaborating with a direct competitor can be challenging, and Oracle might have seen a partnership with Azure as a strategic move to counter AWS’s dominance.

2. Complementary Strengths with Azure

Oracle and Azure: A Synergistic Partnership

While Oracle excels in database solutions, Azure brings its vast array of services, including AI and security. This complementary nature of their services might have made collaboration more appealing, allowing both to effectively leverage each other’s strengths.

3. Business Dynamics and Past Relations

Historical Business Interactions Matter

Past business interactions, collaborations, and even conflicts play a role in shaping future partnerships. Oracle and Microsoft might have found common ground based on their historical business dynamics, making collaboration more feasible. On the other hand, any past friction with AWS could have influenced Oracle’s decision.

4. Broader Market Reach with Azure

Tapping into Diverse Markets

With its deep integration into various industries due to Microsoft’s extensive product range, Azure offers Oracle a chance to tap into a broader market. This diverse market reach might have been more appealing to Oracle than AWS could offer.

5. Strategic Positioning Against AWS

A Unified Front

By partnering with Azure, Oracle leverages Azure’s capabilities and positions itself strategically against AWS. This partnership can be seen as a unified front, where two tech giants come together, potentially challenging AWS’s market position.

Conclusion

Oracle’s decision to collaborate with Azure over AWS is multifaceted, influenced by competitive dynamics, complementary strengths, historical relations, market reach, and strategic positioning.

While it’s challenging to pinpoint a single reason, combining these factors provides a comprehensive understanding of Oracle’s strategic move in the cloud computing landscape.

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Author

  • Fredrik Filipsson

    Fredrik Filipsson possesses 20 years of experience in Oracle license management. Having worked at Oracle for 9 years, he gained an additional 11 years of expertise in Oracle license consulting projects. Fredrik has provided assistance to over 150 organizations worldwide, ranging in size and tackling various Oracle licensing challenges, including Licensing Assessments, Oracle audits, Oracle ULAs, and more.