Most of us are aware of the feud between software companies and Microsoft. Some of the most public about this are two companies which are in good financial shape that have been very successful. The companies are Sun Microsystems and Oracle. The CEO's for these companies are Scott McNeally and Larry Ellison. They both are buddies and love to talk about how much they hate Microsoft and Bill Gates.

For most of the time, these companies have just been whining because Microsoft continues to encroach upon their area which is higher end systems and software for large companies. Sun Microsystems develops high-end computer servers and proprietary Unix type operating systems for its computers, and Oracle develops high-end software databases.

Microsoft is threatening Sun Microsystems because it is making its server operating system easier to use which gives customers more of a reason to switch to a non-Sun system. Oracle's high end databases have sold for thousands of dollars and require thick books as well as training to master. Now, Microsoft is building easier to use high-end databases that sell for less money. So, it is easy to see why these companies are mad at Microsoft.

Now, however, Microsoft must be launching an all out war on Oracle because Oracle has recently been accused of having investigators dig up dirt on Microsoft. One thing Oracle did was investigate Microsoft's supposed, non-biased experts, which included universities, professors, and non-for profit organizations. The experts had written reports that breaking up Microsoft would be bad for the economy. Well, Oracle found that these, non-biased experts had been paid by Microsoft as well as some other anti-Microsoft stuff.

Now, if you go to Microsoft's website or Oracles site, you will see that they are giving free evaluation downloads for their competing software. This is a rarity for these companies which have traditionally sold their software only in a box. And, the only software that you can really download from Microsoft that is business oriented is Microsoft SQL server, Oracles big threat. Oracle is putting all of their software out as well.

The idea is to gain more customers. Microsoft is allowing a full functional 120 day evaluation while Oracle is offering downloads for development purposes only.

Who will win the war? Well, I believe that Microsoft has the advantage. It has more financial muscle than Oracle, a CEO that is dedicated to winning and doesn't goof off like Larry Ellison does with boating trips, etc. Microsoft has the operating system code to Windows 2000 and will most likely make MS SQL server integrate better with the Windows 2000 than Oracle can. Also Microsoft has shown that it can go into new areas and win. Look at the its success in word processing programs, spreadsheet programs, presentation programs, money programs, the Internet browser and its success in the streaming media player.

Oracle has the advantage of having a large market share in the database area as well as having a large support organization and the government on its side. Also, Oracle's software is platform independent, meaning that it works on various operating systems, whereas Microsoft's works mostly with its operating systems. There are essentially three operating systems now for webservers now, Windows 2000, Unix or Linux, and Sun Solaris. As meantioned earlier, Sun is getting hurt by Microsoft's ease of use in Windows 2000, so eventually, that may fall of the list. Unix has evolved into Linux and is very popular now. Microsoft is investing in Linux companies which makes it less of a threat to them as well. Linux still is hard to use and lacks software support, so Microsoft again gets points.

I believe that if the DOJ doesn't restrict Microsoft's behavior, I believe they will win and Oracle will loose its biggest piece of cake and may become another victim.

Update: June 21, 2001

Over the past year or so Oracle has lost market share for its database to IBM and Microsoft. Microsoft was the strongest percentage grower for its database followed by IBM and Oracle. This may have been because of the late release of Oracle 9i. Oracle is fighting back with its latest version stating that it is more open than Microsoft's and will support more operating systems and won't crash like Microsoft's does.

Who will win this war over the next few years? Well, this is much like the Linux vs Windows argument. If you say Microsoft, you are betting that a proprietary system will work and that Windows will win this market as well because Microsoft has been notorious for only building for the Windows platform. If IBM or Oracle wins, it could either be a win for Windows or Linux.

As Microsoft has shown in the past, problems can be fixed and their products can be improved. Microsoft has always been a low cost software producer as compared to its competitors. With the recent success of Windows 2000 and upcoming XP, Microsoft will have some advantage in integrating its database more tightly with its operating system. In addition to this, great marketing $$ will help to promote and sell these products.

Add this to the fact that Bill Gates goes to work everyday and has some stability in its management. Oracles Ellison has had long periods away from the company but is finally back now working, but for how long? These factors put the odds in favor of Microsoft winning this war.

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