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Oracle Changes Its Tune Toward Microsoft, Salesforce

June 26, 2013 - News

Oracle, amid flailing earnings and stock prices, is embracing Microsoft Corp. and Inc. as partners, rather than as the long-time competitors they have been. 

With both deals, Oracle is boosting its cloud computing strategy. 

First, Oracle has joined forces with Microsoft. That arrangement calls for the Windows Azure cloud computing service to run Oracle's database software, Java programming tools and application-connecting middleware, the companies said.

Second, Salesforce has agreed to buy Oracle's hardware and software to run its CRM; that contract lasts for nine years.

The announcements are part of Oracle's shift from its legacy on-premise strategy to subscription-based, online software.

Oracle debuted the news this week at its PartnerNetwork event, days after its stock plunged on lower-than-expected earnings. The Larry Ellison-led company is hosting about 4,000 partners and introducing a variety of changes. For example, Oracle is offering new cloud specializations, a cloud resale program set to launch early next year and more rebate incentives.

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