A leading Oracle executive stated Monday that the tech giant’s brand-new alliance with Microsoft, revealed in June, will turn the one-time bitter competitors into more powerful rivals versus Amazon Web Provider, their typical cloud enemy.

Clay Magouyrk, an Oracle senior vice president, states the tech leviathans stay rivals, however the alliance merely makes a lot company sense.

“Do they enjoy us? Do we enjoy them? We’re still rivals,” he informed Company Expert at Oracle OpenWorld which opened in San Francisco on Monday. “So why would we get together? Due to the fact that we believe the worth to us and our consumers is simply substantial.”

The alliance permits companies to seamlessly established and run their networks on both Microsoft Azure or Oracle’s cloud facilities. This makes it much easier for customers to choose various offerings from both business.

Magouyrk states the collaboration indicate a future where cloud computing is headed– a so-called multicloud world, where companies will have the ability to move quickly from one cloud platform to another. It’s a world that’s totally various from the one now controlled and being pressed by Amazon Web Provider, Magouyrk stated, where consumers are basically locked-in after making extreme modifications to their software application to maximize the platform.

“AWS still has this concept that everybody is going to adjust to them,” he stated. It’s a design, he stated, where Amazon is basically stating, “‘ Hey, we understand how to do cloud and if you will simply reword all of your things to do it our method, then you will be cloudy and life will be excellent.'”

From Amazon Web Provider to Oracle Cloud

Magouyrk recognizes with the Amazon method, and the business’s unanticipated and outstanding increase as the dominant gamer in the cloud. He was among the engineers who assisted develop Amazon Web Provider, which outmaneuvered the standard business tech giants, consisting of Oracle, IBM and Hewlett-Packard, to control the brand-new pattern in business tech.

Today, Amazon has about 33% of the almost $100 billion cloud facilities market, followed by Microsoft with 16% and Google with 8%. Oracle stays an extremely small gamer because market. However it the third-place gamer in the cloud software application market, likewise called software-as-a-service, behind Microsoft and Salesforce, according to Gartner.

Magouyrk left Amazon to sign up with Oracle in2014 He has actually grown vital of Amazon’s technique, and he believes Oracle, which stays a significant supplier of business software application and database systems, has a substantial benefit in what he views as a long video game in the cloud: its substantial consumer base.

Established in 1977, Oracle now has more than 400,00 business consumers in 175 nations. A number of them still run personal information centers, while checking out moving all or part of their networks to the cloud. Oracle’s making a bet that their own consumers will relocate to the Oracle cloud.

“I believe it’s extremely simple to undervalue the worth and the stickiness of the Oracle consumer base,” Magouyrk stated. “Oracle has an extremely devoted and important and devoted consumer base. That’s the factor Oracle has this possibility in cloud facilities.”

‘ The concept that whatever can run in one cloud is not real’

However the future he visualizes is one where various cloud platforms complete and interoperate. Magouyrk was hired to Oracle by Don Johnson, who leads Oracle cloud facilities advancement, and who was likewise a veteran of Amazon Web Provider.

Magouyrk states that he and Johnson didn’t pertain to Oracle with the objective of copying their previous company’s company design, however rather, to check out a more modern-day method of considering cloud computing.

“We didn’t come here to develop an AWS,” Magouyrk stated.

Amazon’s quick increase to success in the cloud has actually mostly been credited to its capability, beginning with its earliest days, to draw in start-ups and little and medium sized companies who did not have existing servers or information centers to fret about. While AWS has definitely had its share of success with bigger consumers, Oracle has a long history with the majority of the extremely most significant business worldwide.

Magouyrk indicate a larger chance in the business world, consisting of Oracle consumers who have yet to make the migration to the cloud.

“The reality is the pie keeps growing,” he stated. “For me to prosper, I do not need to take consumers from AWS. We’re all taking consumers from this on-premise world into the cloud. That’s where I focus my energy.”

That’s likewise where the Microsoft collaboration can be found in, he states. In Oracle’s view, he states, it’s an action towards a more enthusiastic future where it’s simply that simple to shunt software application in between clouds.

“The concept that whatever can run in one cloud is simply not real,” he stated. “Cloud facilities business are going to need to make it possible for interoperability in between them. Clearly, they will still be rivals, in the exact same method energy business and telecoms business are rivals. However consumers require interoperability.”

Got an idea about Oracle or another tech business? Contact this press reporter through e-mail at bpimentel@businessinsider.com, message him on Twitter @benpimentel You can likewise contact Company Expert firmly through SecureDrop