More Oracle/Sun details – again suggesting Oracle wants to become the Apple of enterprise infrastructure
CEO Larry Ellison spent his time on the conference call talking about Sun. He added that he expects Sun to improve market share and margins when the deal closes. That would be a good move considering Sun is being targeted by IBM and HP and losing share.
Ellison also gave some insight to his Sun strategy. In a nutshell, he’s staying out of the high-volume, low margin game that IBM and HP play. Simply put, Ellison is taking Sun upmarket with hardware-software devices like the Exadata database machine. Exadata has been a hit, said Oracle executives, who noted that orders have tripled sequentially and the biggest problem right now is manufacturing enough systems.
The future of Sun will rest with high-value systems, said Ellison, who added the computer industry is focused on selling components instead of complete packages. Ellison, who is modeling Oracle-Sun after T.J. Watson’s IBM, added that Exadata can be a multi-billion-dollar business “not including maintenance.”