Satya,
Did you check your properties for trailing spaces?
If there are any trailing spaces in only one of the properties, the DataSource is unable to build the connect-string correctly.
Please doublecheck your oracle version against the driver-jars version.
Can you please provide Connection Settings?
Have you tried setting watt.server.jdbc.driverList=com.microsoft.jdbcx.sqlserver.SQLServerDataSource on your IS.
HTH,
-L
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