What does IBM think?
Except for flash, the integrated nature of this sounded very similar to what IBM announced in July with the Smart Analytics System -- highlighting high performance and low costs. And of course all Power servers now support flash as do many of our x86 servers and storage arrays, but that was of course not mentioned.
I also find it interesting, just like last year's Exadata announcement, there was a significant difference between the cost in the announcement versus the true costs; e.g., they left out the Oracle software costs which often are equal or greater than the severs itself. And the scale out of this make for more licenses - which is why oracle likes it ("spend less on hardware so you can spend more with us" I often hear them say). We do a good business with Oracle on scale-up and even RAC on Power Systems (it a huge revenue and profit generator for them) so surprised they trashed us so hard. As we take more HP/Sun UNIX share that growth continues with Oracle on Power so they do benefit from our gain.
It was interesting that this is an x86-based system after Sun just ran full-page ads in the last few weeks attempting to calm fears regarding commitment to Sun's SPARC ;-) (sly grin)
So its clear they are panicked, bumping up the Oct 14th announcement since the Sun business is imploding while Power takes very, very significant share - which I view as customers voting with their wallets. We took 7.4 pts UNIX share (that's a LOT in a $18B/year market - UNIX is still 30% of all customer spend on servers each year) per IDC just in 2Q!! (In past years I'd have been happy with that type of gain over a whole year. To get 7.4pts share grab in Sun's fiscal 4th quarter? Its called an implosion, and hence panic has ensued.
Longer term, IBM has logged 1,800 customer migrations to Power Systems from 2006 thru 2Q09, including 815 versus Sun (250 in 1H09 alone, 170 servers, the rest storage/tape) and 753 versus HP. That’s an average of one customer per day moving to IBM. And on top of that, IBM Software Group reported more than 100 SAP clients alone have switched from Oracle Database to DB2 in the last six months for higher performance and lower cost.
IBM has the technology lead across servers, storage and database software -- and customers see it and are switching -- this trend will continue.
Scott K. Handy, VP, Worldwide IBM Power Systems Strategy, Marketing and Sales Support.