Well, that was a wasted few minutes.
At the start of the article I was thinking "who are these Gabriel Consulting chaps, maybe I should check them out", but by halfway through it was "why bother!" A simple example is the contradictory statement "....customer desire to have integration done at the factory on the vendor’s dime rather than their own shop floor at professional services’ hourly rates. Of course, service and consulting is another lever that Oracle can now use to add more value and disrupt competitors...."
Integration done on the factory floor? Oh, you mean pre-delivery integration. Which can only go so far with complex enterprise systems, which require INTEGRATION with the environment they're going into to. Big hint - that's why it's called "integration" and not just "installation". Installation is what you do with appliances, which is what Oracle needs to be selling because they don't have any services capability to do real integration. And they can't look to Sun's former channel partners for the integration piece because those partners have just been told Oracle want to build a direct model, so the ex-partners are all going to be flogging IBM, hp, Dell, and just about anything BUT Oracle into those accounts Larry has targeted for his "factory-integrated" push. They'd be stupid not to, because services are what seperate those top-line resellers from tin-shifters and make them nice margins, and if Larry says he's going to take that away then they'll go play some other vendor's game.
But then we get the bizarre volte face of "....Of course, service and consulting is another lever that Oracle can now use to add more value and disrupt competitors...." So which is it? Larry's going to do factory integration of appliances and hope they can magically embed themselves into his customer's environments, or he's going to do complex and competitive services work (presumably on the "shop floor at professional services’ hourly rates", which Gabbers Consulting just said the customer's don't want) when he doesn't actually have a services arm to do the work! Oh, and I'm pretty sure that if the factory integration is anything more than physically bolting hardware together then it will mean hiring a large number of skilled "integrators", probably not far off the price of those professional services teams his competitors already have doing work inside those customer target accounts.
Were gabriel listening at all during the Larry & Phillips show? They said they wanted to be like IBM in the '60s, not try selling enterprise solutions in the way Dell sold PCs in the '90s. I'm guessing Gabriel's amazing analysis that led them to conclude that Larry wouldn't ditch the Sun hardware (oh, I assume that doesn't include Rock then?) was settled by the flipping of a coin going by the content of this "article". Are all the capable analysts off skiing?