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Oracle, Microsoft Agree to First Technology Partnership

Posted on: Thursday, 20 May 2004, 06:00 CDT

May 21--Pragmatism won out over acrimony Thursday when software giants and longtime rivals Microsoft and Oracle announced a new partnership for technology development, the first formal agreement between the two companies.

Oracle, based in Redwood Shores, agreed to integrate its development tools into Microsoft's Visual Studio software development products. The link will make it easier to create Oracle database applications that run on Microsoft's Windows platform.

Such integration is important for business services running over the Web, such as financial or customer service applications that rely on a large database.

Many customers have complained that disparate software systems cause constant headaches for their IT departments.

"Oracle and Microsoft have a lot of customers in common," said Marie Huwe, general manager in Microsoft's developer division. "We are demonstrating that we want to provide customers with a more productive development experience."

Indeed, practical concerns from customers are helping drive Microsoft's thaw in relations with former foes such as Sun Microsystems, which agreed to settle its antitrust case against Microsoft in April and work together.

Microsoft, based in Redmond, Wash., has reached similar technology partnerships with SAP and IBM.

The partnership announced Thursday represents something of a departure for Oracle Chief Executive Larry Ellison, one of Microsoft's sharpest critics. Ellison has recently touted the Linux platform as a more secure alternative to Windows and predicted last year that the open source operating system would trounce Microsoft in the data center market.

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To see more of the San Jose Mercury News, or to subscribe to the newspaper, go to http://www.mercurynews.com.

(c) 2004, San Jose Mercury News, Calif. Distributed by Knight Ridder/Tribune Business News.

MSFT, ORCL, SAP, IBM, 6680,

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