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InformationWeek Writer Sees Little Reason for Anxiety in Oracle's Executive Suite
Optimized Solutions May Well Save the Day as Other Vendors Focus on Commoditized Lines
December 11, 2010,
Volume 154, Issue 2

But this is a good battle, at least from the perspective of people who are interested in a scenario where advancing technology lifts all boats
 

The slippage in Oracle's placings in the Gartner surveys of server sales volume is not necessarily cause for alarm, writes Alexander Wolfe in InformationWeek. His reasoning is that this slippage is merely the logical result of Oracle's corporate focus on optimized rather than commoditized solutions.

According to the Gartner Q3 server press release, "Oracle was the only vendor of the top five to show a decline year over year." In terms of revenue, Oracle was displaced by NEC in the top five.

Not to worry, writes Wolfe, asking rhetorically, "So why I am so blithely sloughing over the sagging Sun server numbers? It's because building mostly commodity servers doesn't provide a long-term strategic advantage. Integrated offerings like Exadata do. Integrated offerings are the future, particularly when you're talking about a vendor with an enterprise software portfolio, which is trying to make a case for the high value of its product. That's even more important in a world where a second wave of commodity pressure has emerged on the apps front, via cloud and SaaS."

Wolfe also anticipates that Mark Hurd will apply his server marketing expertise to Oracle's commoditized solutions, making for revenue gains in that sector of the company's product line.

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Other articles in the Servers section of Volume 154, Issue 2:
  • InformationWeek Writer Sees Little Reason for Anxiety in Oracle's Executive Suite (this article)

See all archived articles in the Servers section.

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