Oracle intends to integrate Sun hardware product lines

Larry Ellison says this explicitly as follows:

“We are definitely not going to exit the hardware business.  While most hardware businesses are low-margin, companies like Apple and Cisco enjoy very high-margins because they do a good  job of designing their hardware and software to work together. If a company designs both hardware and software, it can build much better systems than if they only design the software.”

Since one of Sun’s primary product lines is based on the chip multi-threading architecture they created which is targeted at webserver optimization, it makes sense that Oracle would be interested in this.  Integrating Oracle’s software(which is databases driving web-apps) with an architecture that is complementary could work well.

Ellison answers the logical next question as well:

“Oracle started designing hardware and software to work together a few years ago when we began our Exadata database machine development project. Some of our competitors, Teradata and Netezza for example, were delivering preconfigured hardware/software systems, while we were just delivering software. The combination of hardware and software has significant performance advantages for data warehousing applications. We had to respond with our own hardware/software combination, the Exadata database machine. Oracle’s Exadata database machine runs data warehousing applications much faster—at least ten-times faster than Oracle software running on conventional hardware. All the hardware and software pieces, database to disk, are included. You just plug it in and go—no systems integration required.”

No systems integration required…that’s what CIO’s want to hear.

Ellison then addresses the SPARC architecture:

“Once we own Sun we’re going to increase the investment in SPARC. We think designing our own chips is very, very important. Even Apple is designing its own chips these days.  Right now, SPARC chips do some things better than Intel chips and vice-versa..our primary reason for designing our own chips is to build computers with the very best performance, reliability and security available in the market. Some system features work much better if they are implemented in silicon rather than software. Once we own Sun, we’ll be able to plan and synchronize new features from silicon to software, just like IBM and the other big system suppliers.”

Oracle’s thinking in deciding to acquire Sun seems to make a lot of sense.


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