Despite years of competition, VMware and Oracle have confirmed they are partnering to allow users to operate VMware workloads on Oracle cloud infrastructures and applications. Historically, both businesses have had a rather hostile relationship but the two rival companies have sealed an agreement that both businesses believe will improve application management and allow for further cloud development. Oracle has shown its support towards VMware and its position in the data centre. On the other side, VMware has supported customers in transferring workloads to Oracle Generation 2 Cloud Infrastructure. Larger businesses that implement Oracle and VMware systems are likely to benefit from the confirmed relationship between the two rival businesses. 

A historical insight of Oracle and VMware For years, both businesses have had conflicting opinions. Oracle created virtualisation software to effectively compete with VMware, but this gained little support. Research analysts state that for years Oracle resisted cooperation with VMware, refusing to acknowledge VMware’s position and provide customers operating the software on VMware VMs. As a result, many companies experienced difficulties in managing Oracle or VMware errors. 

Fast forward to today, both businesses support their joint clients. Many companies are likely to benefit from this partnership, providing the necessary foundations for many company’s systems; including VMware’s virtualisation line and database management systems provided by Oracle. 

A transition from legacy systems 

Businesses are continuously transferring from conventional on-premise centres and towards the public cloud. IDC has suggested global investment in public cloud systems will increase from $210 billion in 2019 to $370 billion in 2022. Many companies now use a combination of private, hybrid and public cloud systems. These businesses commonly experience challenges in shifting and managing applications due to a contrasting mix of on-premise and cloud-based designs. Companies like these tend to manage a number of autonomous groups, covering legacy and cloud service systems individually. ANalysts believes that this process is becoming inefficient as cloud management consumes more workload. 

Instead of launching a number of management tools, all requiring separate support, many companies are now looking for one set of tools that meets all requirements. 

Impact of VMware-Oracle partnership 

The resulting partnership will provide VMware and Oracle customers with added flexibility, meaning businesses will no longer need to retest systems when moving to the cloud. Both vendors will equally benefit from the agreement where Oracle required more load for OCI and VMware is actively looking to get their software in the cloud. VMware has been attempting to position itself as a leader in the multi-cloud management industry. According to studies by IDC, over 90% of businesses operate at least one cloud application system. In order to provide multi-cloud management systems, VMware partnered with a number of public cloud organisations such as AWS, Microsoft and Google, and most recently Oracle. For now, the agreement will support larger companies, simplifying the challenges that develop when certain system errors occur. The long term implications are a little more uncertain regarding Oracle and its position in delivering public cloud services. Research by Gartner highlighted that Gen 1 of Oracle Cloud Solutions did not perform as expected. Oracle created a new architecture and is promoting it but industry members say it is too soon to say what impact it will have. Some industry members have said pricing might prove to be problematic. Legacy software tends to cost more than cloud systems and in the case of the recent agreement, Oracle and VMware both have high licensing fees, which could detract interest in their joint cloud services.