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Larry Ellison on the Acquisition of Sun Microsystems After the Acquisition, Oracle will not exit the hardware business May 9, 2009, Volume 135, Issue 1
Oracle has posted the transcription of an interview of Larry Ellison to their web site. In that interview, Larry makes a number of important statements for existing Sun customers, partners, and employees. He stately clearly that, "we are definitely not going to exit the hardware business. While most hardware businesses are low-margin, companies like Apple and Cisco enjoy very high-margins because they do a good job of designing their hardware and software to work together." When asked if Oracle has the experience of designing software and hardware together, Larry said, "Oracle started designing hardware and software to work together a few years ago when we began our Exadata database machine development project." When pressed if he would discontinue the SPARC chip, he stated, "No, our primary reason for designing our own chips is to build computers with the very best performance, reliability and security available in the market. Some system features work much better if they are implemented in silicon rather than software. Once we own Sun, we'll be able to plan and synchronize new features from silicon to software." The unambiguous reply to the question, "Are you keeping the disk storage and tape backup businesses?" was, "Yes, definitely. We believe the best user experience is when all the pieces in the system are engineered to work together. Disk storage and tape backup are critical components in high-performance, high-reliability, high-security database systems."
Larry commented that Oracle wants to hold on to Sun’s "experienced team of first-rate hardware engineers", that, "Oracle has a good track record of retaining the engineering talent from acquired companies." He added, "We have lots of hardware experience inside of Oracle. Hundreds of Oracle’s engineers came from systems companies like IBM and HP"
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