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Oracle, Microsoft add new services to Oracle Database@Azure

  • 20.03.2025 11:49
  • markets.businessinsider.com
  • Keywords: Exascale, Database Service

Oracle and Microsoft expand Oracle Database@Azure with new services, including Exascale support for cost savings and broader regional availability.

Microsoft ServicesORCLsentiment_dissatisfiedMSFTsentiment_satisfied

Estimated market influence

Oracle

Oracle

Negativesentiment_dissatisfied
Analyst rating: Buy

Stock price dropped by -1.30%

Microsoft

Microsoft

Positivesentiment_satisfied
Analyst rating: Strong buy

Stock price increased by +0.52%

Context

Analysis of Oracle and Microsoft's New Services on Oracle Database@Azure

Key Business Insights and Market Implications

New Services Launch

  • Oracle Exadata Database Service on Exascale Infrastructure:

    • Launched with up to 95% lower minimum infrastructure costs.
    • Eliminates the need for dedicated database and storage servers, offering a scalable and cost-effective solution.

  • Oracle Base Database Service on Oracle Database@Azure:

    • Coming soon, designed for running Oracle Database workloads on virtual machines.
    • Features easier administration and pay-as-you-go pricing.

Market Expansion

  • Geographical Reach:
    • Oracle Database@Azure is now available in the Microsoft Azure East U.S. 2 region.
    • Total regions: 14 (with 18 more planned over the next 12 months).

Competitive Landscape

  • Strategic Partnership with Microsoft:

    • Collaboration underscores Oracle's commitment to expanding its cloud services on Azure infrastructure.
    • Enhances accessibility and scalability for customers leveraging Azure's global reach.

  • Next-Generation Hardware Support:

    • Oracle Exadata Database Service on Dedicated Infrastructure now supports the Exadata X11M platform.
    • Indicates a focus on performance and efficiency improvements to stay competitive with other cloud providers like AWS and Azure.

Stock Performance

  • Oracle (ORCL):

    • Price: $232.77
    • Change: -3.07 (-1.30%)

  • Microsoft (MSFT):

    • Price: $216.39
    • Change: +1.11 (+0.52%)

  • Other Tech Stocks:

    • NVDA: +0.80 (+0.21%)
    • AMZN: +1.74 (+0.18%)
    • GOOGL: +11.83 (+2.02%)

Long-Term Effects and Industry Impact

  • Cost Leadership:

    • The 95% cost reduction highlights Oracle's focus on affordability, potentially attracting price-sensitive customers from competitors.

  • Scalability and Accessibility:

    • Expansion to 14 regions (with more planned) positions Oracle Database@Azure as a robust global cloud service.

  • Competitive Dynamics:

    • Oracle's partnership with Microsoft could intensify competition in the cloud market, particularly against AWS and Azure.
    • The introduction of next-generation hardware underscores Oracle's strategic focus on innovation to retain and gain market share.

Regulatory Considerations

  • No immediate regulatory impacts mentioned, but long-term implications may arise from increased market competition and data sovereignty concerns as Oracle expands its global footprint.

This analysis highlights the strategic moves by Oracle and Microsoft to enhance their cloud offerings, emphasizing cost efficiency, scalability, and global reach. These developments are expected to influence market dynamics and customer preferences in the competitive cloud services landscape.