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Oracle and Amazon team up for their own reasons

Oracle needs to prove it “gets” the cloud. Amazon needs to show that its Web services are ready for the enterprise.

Hence the deal under which Amazon will cordon off part of its vaunted cloud computing environment to sell  Oracle enterprise applications. That portion of Amazon’s EC2 cloud will run Oracle VM, a slight departure from the Xen that underlies the rest of its services (Oracle VM is based on Xen.)

Customers using Oracle E-Business Suite, PeopleSoft Enterprise, Siebel CRM, Fusion Middleware, database and/or Oracle Linux already can transfer those licenses to the Amazon cloud or buy new licenses. It is unclear if there is a partner play in that equation anywhere.

Oracle CEO Larry Ellison signaled this move Sunday night in his keynote by extolling the Amazon model as the true cloud compared to pretenders like At one point, he came precariously close to dissing his own database; runs on the Oracle database.

It will be interesting if CEO Marc Benioff will respond in kind tomorrow during his Oracle OpenWorld counter-keynote.

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