Editorials

Microsoft and Oracle Coopetate

From Wikipedia, http://en.wikipedia.org/wiki/Coopetition

Coopetition occurs when companies interact with partial congruence of interests. They cooperate with each other to reach a higher value creation if compared to the value created without interaction, and struggle to achieve competitive advantage.


Often coopetition takes place when companies that are in the same market work together in the exploration of knowledge and research of new products, at the same time that they compete for market-share of their products and in the exploitation of the knowledge created. In this case, the interactions occur simultaneously and in different levels in the value chain.

Microsoft and Oracle have partnered in an agreement that clearly demonstrates the principles of coopetition. Oracle software is running not only in Windows, but is now available in the Azure platform. That’s not really new when you are talking about the Oracle database. However, you can bring up an Oracle Linux machine in a Windows Hyper-V session in Azure, or IaaS implementations.

Oracle WebLogic along with the Oracle engine will run natively on Windows Hyper-V or Azure allowing you to easily deploy an environment in the Cloud, at home, or use a combined implementation.

Both companies have complementary competing products on just able every level. They both have database engines, data mining solutions, big data research solutions, enterprices web server solutions, CRM, Analytics, financial and other pre-packaged solutions, Each company has some advantages in their stack the other would like to have, or address separate markets.

So, the question is, with so much competition going on, what is the value in cooperation? Hosting in Microsoft reduces Oracle server sales. Hosting Linux in Hyper-V reduces Windows sales. On the other hand, Hosting in Microsoft can increase Oracle software sales, and increase Windows OS or Azure revenue.

In the end, we the customers benefit from the cooperation of these companies by allowing us options that may better fit our needs. Additionally, their competition encourages useful enhancements and features, and helps keep the costs in check.

Are you using Oracle tools in the Microsoft stack already? Get into the discussion and share your thought online about the value of the Oracle/Microsoft joint venture. You can always leave comments in my email at btaylor@sswug.org.

Cheers,

Ben