Oracle and Microsoft Cut a Software Deal

"The move, analysts say, is another step by Microsoft to improve its relations with other companies in the industry, even fierce competitors like Oracle. It is a pragmatic one for Oracle because many of its customers, up to 40 percent, run its database software on Windows.

"This is a recognition that Windows is an important platform for many of our customers," said Andrew Mendelsohn, senior vice president for database technology at Oracle.

Under the agreement, Oracle will join Microsoft's Visual Studio partner program. Visual Studio is the technology that software developers use to write programs for Windows. They will now be able to use Microsoft programming tools to write programs for Oracle's databases.

The agreement, the first of its kind between Oracle and Microsoft, could lead to further cooperation, executives at both companies said yesterday. But Microsoft and Oracle, analysts said, continue to compete aggressively in the market for database software.

In addition, Oracle has pointed to Microsoft's presence in the business software market as evidence that its bid to acquire PeopleSoft will not hinder competition. The Justice Department has sued to stop the Oracle-PeopleSoft merger."

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