Oracle and Microsoft will expand their multicloud cooperation by 24 locations

Since 2023, nine Oracle Database@Azure locations have been opened by the two providers.

Oracle's larger cloud expansion plan is linked to multicloud agreements. With a commitment to invest $10 billion to expand the capacity and reach of 162 data centers it had operational and under construction as of September, the business started a large cloud buildout at the beginning of the year. In February, cloud overtook software as Oracle's most important business sector, marking another significant business milestone.

In terms of revenue and market share, the IT provider is still well behind the three biggest hyperscalers. According to Synergy Research Group, AWS, Microsoft, and Google Cloud command shares of 31%, 20%, and 13% of the worldwide cloud spend, respectively, much above Oracle's 3% stake.

Cross-platform partnerships make sense as businesses embrace hybrid multicloud architectures and demand for hyperscaler services fuels unchecked expansion in a worldwide sector predicted to reach $700 billion next year. One of the biggest problems facing IT executives is the absence of connectors with and between various cloud providers.

According to Lueng, managing distinct cloud environments might need different teams, security regulations, and operational processes. This can be extremely complex and result in significant overhead.

As authorities examine possible multicloud hurdles more closely, vendor support for interoperability solutions has gradually increased.

Leung stated that he believes the industry has matured to the point where consumers want it.

Oracle is still in competition with Microsoft and the other hyperscaler partners for business cloud workloads. However, Leung asserts that there is plenty of that industry to go around.

He went on to say that about 70% of workloads are still done on-premises. To move such workloads to the cloud, competition is not necessary. So far, collaboration appears to be effective.