Oracle and Netscape form allied NC forces

It's double-trouble for Microsoft as Oracle and Netscape join forcesin the Internet browser war

Oracle and Netscape have signed an exclusive agreement to distribute each others' Internet software products, joining forces against Microsoft.

The tie-up heightened recent Wall Street speculation that Oracle is interested in buying Netscape.

Oracle will adopt Netscape's browser, Navigator, as the standard software for its network computer (NC), expected in the first half of 1997.

Oracle subsidiary Network Computer Inc will bundle Navigator with its Intel-based NCs. Since the NCs are designed to use Web browsers to download applications from servers over the Net rather than store them locally, the deal gives Navigator a pivotal role in Oracle's attempt to promote an alternative to the PC computing model, where power is concentrated on the desktop.

Netscape will bundle Oracle's universal server database with its range of Web software for corporates, which is aimed at companies exchanging data over the intranet or building Web sites.

Oracle CEO Larry Ellison said: 'The popularity of Netscape speaks for itself. While we are huge proponents of supporting all client technologies, there are times when it's appropriate to select a closer alliance partner.

We have chosen Netscape.'

Netscape president and CEO James Barksdale said the commitment between the companies will 'benefit the exploding market for online applications'.

The tie-up with Netscape marks a change of heart from Oracle after weeks of discord between the companies. Ellison had declared that Netscape had 'no chance' of winning the browser war against Microsoft.

Oracle has developed a browser, an Internet server and email products, all of which compete with Netscape's range. But, the choice of Navigator rather than Oracle's own browser indicates that the database company sees Netscape as an ally.