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Oracle, Sun team up
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December 14, 1998: 3:27 p.m. ET
Companies' technology-sharing deal heats up war with Microsoft
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NEW YORK (CNNfn) - Oracle Corp. and Sun Microsystems Inc. Monday announced a technology-sharing alliance that steps up the companies' attack against Microsoft Corp.
Under terms of the deal, Sun (SUNW) will combine components of the Oracle 8i Internet database with Sun's Solaris operating system to allow its customers to build e-commerce applications. Conversely, Oracle (ORCL) will use Solaris' core technology to develop specialized computers for running databases, code-named Raw Iron.
Oracle Chairman Lawrence Ellison has declared that such devices will obviate the need for computers dependent on Microsoft 's (MSFT) Windows NT operating system.
Oracle 8i includes what's called an Internet file system, which allows users to store any file in any format in the database. Authorized users can then search and view files from any computer with any Web browser. Oracle calls this approach "store once, use anywhere," invoking Sun's "write once, run anywhere" slogan for its Java programming language.
It's this capability that the companies hope will threaten Microsoft's Windows monopoly, since Oracle 8i is designed to eliminate dependence on a particular operating system.
"Databases are the engines of Internet commerce," Ellison said in a statement.
"The combination of Oracle8i database and Solaris… will provide buyers with the benefits of technology integration while preserving the customers' choice to use either of these products separately. Both Sun and Oracle believe that technology innovation must not limit choice."
Sun and Oracle are two of Microsoft's more outspoken critics, claiming the company's anti-competitive practices restricts competition in the computer industry.
Microsoft officials said the Sun-Oracle deal offers further proof that the government's antitrust suit against the company is unnecessary because competition is thriving in the high-tech industry.
Microsoft argues that the company is not a monopoly because it continually faces stiff competitive pressures from such deals.
Oracle shares were up 11/16 at 37-15/16 in late-afternoon trading, while Sun shares slipped 1-1/4 to 76-1/8. Microsoft shares fell 4-9/16 to 129-7/16. 
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Oracle
Sun Microsystems
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