Oracle Corporation (NASDAQ:ORCL) reversing sales debacle with Salesforce partnership
The technology giant, Oracle Corporation (NASDAQ:ORCL) has been losing chunks of market share to much younger firms that are selling their software through the Web. It has now sealed a deal with Salesforce.com Inc, the cloud computing and archival pioneer. On Tuesday, both the companies confirmed that Oracle will be integrating some of its cloud-based software programs with various Salesforce products. The deal will also see Salesforce expanding its use of Oracle products but not too many details were revealed. On Monday, Oracle also launched a separate cloud partnership with Microsoft Corp, its long-time rival.
All these efforts have been undertaken with one objective- sales expansion and growth acceleration of its cloud-computing products. This particular technology sector is one of the few fast-growing ones. Over the last five years, Oracle shares have grown 35% while Salesforce stock has skyrocketed over 100%.
Rivals to allies
This partnership is a significant shift from the rivalry that the two companies harboured against each other for over ten years now, which was when Oracle began selling competing software. Salesforce will be benefiting in its own way from this handshake. Amongst other products, the company plans on purchasing human capital management software from Oracle. This may be an indication that it has now scrapped the idea of developing similar competing software of its own.
What’s human capital management software?
A human capital management software ties together content, devices or processes to transform the manner in which people work. Information from any given system in an enterprise can flow into the cloud interface and help in better planing, selection, deployment, development, measuring and rewarding a company’s workforce.
It’s a cloudy world.
Both companies are now looking up at skies that are definitely cloudy with Google and Amazon establishing a place of prominence pretty early in the game. This alliance means that both companies now have the strength to fight the earlier entrants in the market. When customers opt for cloud applications the expectation is that of low-cost and rapid implementations. Even if the applications are from two different vendors, the expectation is that they should work seamlessly and that’s exactly why it makes so much business sense for Oracle and Salesforce to join their cloud forces.