All the talk of layoffs at Sun Microsystems in the wake of the $7.4bn acquisition of the company by Oracle was apparently a bunch of hogwash. Prior to a five-hour extravaganza where Oracle and Sun executives will detail roadmaps and plans in the wake of the merger, Oracle chief executive officer, Larry Ellison, made the rounds …
Backtracking on x64?
Backtracking on the x64 range would not make sense if they are going to continue to push Exadata as hard as they have been.
They might rationalise it, but I can't see them dumping it.
re: Backtracking on x64
No worries. TPM has been wrong on most fronts in this Oracle/Sun deal. Of course he likes to say "often reported" and "as reported", etc... but it is a poor reporter that blames the real reporters that he quotes.
Bryant? Where are you, so we can all tell you to shut up?
Sorry, but looks like you didn't understand the plan on x64.
Oracle will continue to invest heavily on UltraSPARC, SPARC64 (at least until they can go solo with UltraSPARC) and x64 in a particular case. Clustered x64. Like Exadata and the other soon-to-come Oracle appliances.
Oracle won't target volume markets.
For more information, watch the webcast video and presentations.
"....Sparc iron back in the hunt against x64, Power, and Itanium alternatives...." Oh, so Larry wants to be the Canute of the computing world. And I would have thought Larry would be concentrating on his x64-based range (especially with AMD chips) to try and stop the advance of M$ SQL. If he backs off on x64 then that's Oracle Linux just about dead, and Slowaris soon to follow. No, he's much more likley to try thrashing out a longterm plan around Fujitsu's SPARC64 for those 4000 high-end accounts as they will want a platform that scales, and Niagara and x64 (at least in Sun kit) just don't. In short, I expect Larry to re-inforce the Sun x64 team and get all kissy-kissy with Fujitsu.
Then again, the fact that he is still mute when it comes to hp, whilst attacking IBM at every opportunity, probably indicates where he expects to sell more Oracle licences than on Soreacle kit.
Right on time Matt. I think that Oracle is targeting IBM because they
actually have a suite of software to attack, while HP has nothing. HP
is in no way a competitor to Oracle and IBM now. As Larry has stated
the low end will be left to HP and Dell, while Oracle and IBM will battle
it out at the high end where integrated stacks are preferred. Of course
Oracle could start selling Printers, then they would be competitors.
MS SQL? Really Matt? You really are showing that you are not really
in the enterprise market. There are two Enterprise Class DB's - Oracle
and DB2. MS SQL competes more with MySQL, which Larry has confirmed
is one of the reasons for wanting MySQL.
Kicking Schwartz & keeping McNealy
That's actually a rather sharp move. If anyone can light a fire under McNealy, it's Ellison. I see even he realizes Schwartz is useless, though.
"Why would Oracle do this and still be able to make its goal of pulling $1.5bn in profits out of Sun in the first twelve months it has control, and then another $2bn in the year after?"
There he is.
Oracle's strategy may well work . . .
Oracle have a chance and Sun a stay of execution with Oracle-Sun. At least provided its profitable and that is a very good test.
Oracle's strategy may well work a combination of competent management, (AC you're right), and sales execution we'll have to see if it works.
As anyone who has experienced will tell you its difficult to 'execute' if you're part of the acquired team and change transitions always somewhat problematic. Oracle and Sun people are fairly likeminded and should team reasonably well.
If they have enough combined skill and more importantly the will to succeed, time will tell.
Meanwhile the competitive juggernauts trundle on.
Oracle are the challenger and that should give them huge motivation to challenge and win.
Specialisation and focus teams and going direct on the top accounts may well work.
Shows Larry Ellison's business acumen in that he focuses on just the headline top competition.
IBM. HP also sure have lots of work to do : )
Oracle vs. HP in this market? Mmmm.
Would be good if Larry Ellison does persuade Scott McNealy to be involved in Oracle in some way. Was a pity that Scott McNealy relinquished control some four years ago perhaps battle tired after a long time as CEO? Say what you will about Scott McNealy he had charisma and courage, and though often wrong, is an honest and principled man.
Competed against him when working for Fujitsu in the very early PRIMEPOWER days on international accounts, he was a most worthy, tough but fair competitor who gained respect.
When moved to Sun through serendipity and not choice, benefitted from the employee stock plans and for that am most grateful, even if for me Sun was not a patch on the fun and success enjoyed, at least in the early days of Fujitsu.
How do you build an international account from scratch at Fujitsu with the then new PRIMEPOWER? Use an old FACOM strategy from the 1970's that had been used successfully in Australia. Worked like a dream! At least to begin with until incompetent mid and top level managers got in the way : )
PS: in my view the winning way forward for Oracle and Fujitsu (who are currently a bit troubled) is straightforward.
TPM: Backtracking on x64 is not a rational conclusion.
Timothy Prickett Morgan writes, "Oracle will also shut down businesses that Sun has been pursuing that do not make money, according to the reports. That could include backtracking on low-end x64-based servers..."
This conclusion regarding x64 does not jive with the implicit statements from Oracle.
* Oracle would not have just kicked out HP and release their new Data Warehouse machine under Sun x64 hardware, if Oracle would backtrack on low-end x64 based servers and shut down their business.
This conclusion regarding x64 does not jive with explicit statements from Oracle.
I follow Tim with great enthusiasm, but this comment is not well rationalized.
Oracle will exit the x86 market
The margins are not there to justify the R&D. Oracle will end up dumping V2 for Dell boxes in V3. Teradata uses Dell boxes for the last 5+ years.
Oracle is still on the front end of a huge learning curve about hardware.
They just fired all their partners. Will have a disastrous 1Q as they have to empty the channel which Sun stuffed last qtr.
Wait till they realize they are not legally allowed to recognize revenue until the customer takes delivery, installs it and turns on the box. You can count revenue immediately if you ship to a partner.
Make sure no box gets turned on until you get a few $100K of free Oracle software or a break on my Oracle maintenance fees.