Microsoft (MSFT) and Oracle (ORCL) announced on Monday that the two tech companies are forming an enterprise partnership. According to press releases from both companies, the deal will allow Oracle software services such as Java, Oracle Database, and Oracle WebLogic Server to run on Microsoft’s Windows Server Hyper-V and Windows Azure.
Oracle stated in its press release as a result of the deal, “Java developers, IT professionals, and businesses, will benefit from the flexibility to deploy fully supported Oracle software.”
However, perhaps the greatest beneficiaries of the deal are Oracle shareholders. After reporting disappointing sales numbers last week, Oracle stock is down 12 percent since June 18 and is a severe market underperformer over the last year. Although the deal is a very minor catalyst for the company, it proves that Oracle’s software is still highly relevant in the IT world and hints that Oracle may not be losing market share to younger companies as quickly as some investors suspect.
Meanwhile, Microsoft said in a press release, “Now our customers will be able to take full advantage of the flexibility of our unique hybrid cloud solutions offer for their Oracle applications, middleware and databases.”
Shares of both companies remained unchanged in after-hours trading. However, both stocks outperformed the broader market during normal trading hours on Monday, closing up for the day while the Nasdaq closed down over one percent.
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