Oracle meets hardware through Sun
Filed under: Miscellaneous
For $7.4 billion deal, Oracle has now a hardware business and competes with great names on the market like H.P., I.B.M., Cisco Systems or Dell. The trend these days is everybody to make alliances or acquisitions. The employees of the vendor suffer if its products are less interesting.
Customers need, after all, just an end-to-end service provider and cheaper products. Lawrence J. Ellison, Chief Executive of Oracle, referring to the costs, says the labor of assembling products and making them operational is really important for Oracle.
But it’s not that easy. This transaction seems to be the most important through the economic downturn and threatens about 2,000 people of losing jobs.
Oracle has now the opportunity to present large systems in one package, meaning hardware, main software and networking technology. This is what corporate clients ask for.
Even so, customers have to be careful not to create IT monopole and a lack of choices based on their needs. Competition is still a serious element and a good sign, but for how long?
Oracle says it plans to offer solutions like databases, business software, servers, storage systems, networking equipment and the technology to make all work together as all- in-one product. This company has already its clients where can land the hardware equipment from now on and gained Sun’s direct clients summing up about 70% of sales. H.P. and Dell have now serious troubles because none of them developed software products for hardware.
Before Oracle meets the Sun’s hardness, Cisco formed a partnership with EMC and VMware in order to sell computer servers. After that, H.P. and Microsoft get to know each other better in the beginning of this year. Big actors on the IT market get out and “old” beginners take their places. Products of different brands become compatible and form series of products for endless users.
Despite commercial competition, the executives of rival companies are friends and look to remain in same terms of relationships.




