Oracle’s (ORCL) major database deal with Microsoft (MSFT) could be a “material positive” for both companies, UBS said in an emailed note to clients Friday.
The tech companies late Thursday introduced a new database service for customers to access other Oracle services in Microsoft Azure datacenters.
The deal creates an Oracle Cloud Infrastructure tailwind through faster cloud migrations and is a material win for Microsoft given how resource-heavy typical Exadatabased workloads are but the tech giant may “modestly lose” some Azure database upside, UBS said.
The transaction is also likely a “modest negative” for Amazon.com’s (AMZN) Amazon Web Services and could cut some Oracle “displacement upside” for MongoDB (MDB), UBS said.
Revenue from the new database service, Database@Azure, will be reported as OCI revenue, according to the note.