Insights

These 2 Cloud Players Are Teaming Up Against AWS

Microsoft (NASDAQ: MSFT) and Oracle (NYSE: ORCL) have created a cloud infrastructure offering that allows for a seamless multi-cloud platform, eliminating previous inefficiencies and providing tools from both companies. Here’s how the tie-up could help the pair catch up to Amazon‘s (NASDAQ: AMZN) Amazon Web Services (AWS).

Match made in heaven

About two-thirds of enterprise-level cloud customers use a multi-cloud approach to running their businesses. That may be because they see value in using the tools provided by different cloud providers. Companies may also be forced into a multi-cloud system due to mergers or acquisitions. Either way, using more than one cloud provider can cause inefficiencies when moving data from one provider’s platform to another.

Image source: Getty Images.

Microsoft and Oracle have been working to make life easier for overlapping customers of the two cloud providers. It turns out the pair have been working together since 2019 on a project that linked Oracle’s cloud infrastructure to Microsoft’s Azure cloud infrastructure. Customers liked having the ability to use Azure’s data analytics tools in combination with their ERP software from Oracle, but moving data between the two platforms was time-consuming.

Microsoft and Oracle have since ironed out the data flow issues. Now they’re rolling out the combination in a fully integrated format. There are no fees associated with quickly and easily transferring data, but customers are charged for using additional new features available through the partnership.

That means there is likely a significant cross-selling opportunity for both companies. For instance, healthcare customers that Oracle acquired from its recently completed acquisition of Cerner can transition health data over to Azure to use Azure Synapse, its data analytics tool. Likewise, Azure customers can now access tools from Oracle.

In addition to adding interoperability to their new multi-cloud offering, the companies also took user experience into account. Existing Oracle customers will continue to use their familiar interface while using Microsoft tools and vice versa. That way, customers will not need to learn an entirely new system to use the new service.

Taking on the champ

Amazon’s AWS cloud service is far and away the industry leader in cloud infrastructure. The company holds a commanding 33% share. Azure is the runner-up with 21%. Oracle is further down on the list with a 2% share. Each cloud provider hosts data for customers and offers its own set of analytical tools. The combined offering from Microsoft and Oracle could be one of the more robust.

The cloud computing market is expected to grow by over 17% annually through 2030. As new cloud customers join the party, Microsoft and Oracle could capture a larger portion of the growing market in an attempt to overthrow AWS. Valuation could be another bonus for prospective investors.

MSFT PE Ratio (Forward) data by YCharts

Based on their forward price-to-earnings (P/E) ratios, both stocks are cheaper than they have been over the last year. Forward P/E looks at expected earnings. Opportunistic investors combing the downtrodden stock market for bargains should have these two stocks on their radars.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. BJ Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info