) -- Software giants


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both finished higher in Monday trading, after the long-time rivals announced that they're joining forces to strengthen their cloud offerings and defend against being overtaken by faster, nimbler best in class software as a service companies.

Microsoft settled up 1.34% to $33.71, and Oracle tacked on 0.22% to close at $30.20.

Microsoft and Oracle unveiled a partnership Monday that will allow customers to run Oracle software on Windows Server Hyper-V and in Windows Azure. Customers will be able to deploy Oracle software, including Java, Oracle Database and Oracle WebLogic Server on Windows Server Hyper-V or in Windows Azure. Terms of the deal were not disclosed.

As part of this partnership, Oracle will certify and support Oracle software including Java, Oracle Database and Oracle WebLogic Server on Windows Server Hyper-V and in Windows Azure. Microsoft will also offer Java, Oracle Database and Oracle WebLogic Server to Windows Azure customers and Oracle will make Oracle Linux available to Windows Azure customers.

The companies expect this improved flexibility in their cloud services to be a big draw for Java developers, IT professionals and businesses.

"At Oracle, we are committed to providing greater choice and flexibility to customers by providing multiple deployment options for our software, including on-premises, as well as public, private, and hybrid clouds," Oracle president Mark Hurd said in statement. "This collaboration with Microsoft extends our partnership and is important for the benefit of our customers."

Oracle and Microsoft's joint-statement comes after Oracle CEO Larry Ellison said during the company's earnings call last Thursday that the company will make a "startling series" of cloud partnership announcements with companies such as,



and Microsoft this week that will "reshape the cloud and reshape the perception of Oracle Technology in the cloud."


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shares tanked last Friday after a disappointing fiscal fourth-quarter earnings report Thursday. But Wall Street equity analysts were publishing reports indicating that a downbeat aftermath for Oracle shares may be a good time for investors to snap up

a great deal

for themselves as they on average maintain an "overweight" rating on the stock.

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Written by Andrea Tse in New York

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Andrea Tse