Linked by Thom Holwerda on Fri 7th Oct 2011 15:36 UTC, submitted by twitterfire
Oracle and SUN "Oracle has pulled the rug out from under Intel's Itanium processor by yanking support of its database, middleware, and application software on future Poulson and Kittson Itaniums. It looks as though Larry Ellison wants to take on IBM in microprocessors for data center systems, man to man, head to head. 'I remember when we first bought Sun, a lot of people said we were going to get out of the hardware business," Oracle's co-founder and CEO said opening up his keynote at the OpenWorld customer and partner and conference on Sunday night, when he also announced the new Exalytics in-memory BI appliance. 'I guess we didn't get that memo,' Ellison quipped, pointing out that Apple is doing a 'pretty good job' designing its own hardware and software and making it work well with its own services. And that Oracle is not only committed to making its server, storage, and networking business work, but having taken Sun's hardware as a means of getting its hands on Solaris and Java, Oracle is actually enthusiastic about creating its own stack."
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Oracle: Strong. IBM: Weak.
by Kebabbert on Tue 11th Oct 2011 11:07 UTC in reply to "A World of difference"
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If [Larry Ellison] really wants to take on IBM then may I humbly suggest that he looks at the prices for the items in his pricebook.
Why is DB2 a lot cheaper than Oracle on a Solaris platform?
Why have they increased the annuial costs for Weblogic beyond all recognition. In this case, I know of one company who has ditched Weblogic and moved everything to WAS. Now they are looking at buying some Power 7 kit to replace their 4yr old Oracle (neew Sun Sparc kit) which has seen its maintennance costs rocket in the past year.
It is IBM's 4th Quarter so the sales teams are doing some very tasty deals. Deals which if my boss is anything to go by, Oracle are a million miles away from matching.
So Mr Ellison, are you really putting your company on the line and betting it all when you go up against IBM? I would like to think that your stockholders might have something to say about that eh?

Personally, I think this is a load of hot air.

There are lot of people not agreeing with this.

A company's value is proven, by showing that it can charge a premium for its products.

Likewise, if a company need to lower the price, it proves that the company is not confident in its products.

Oracle is increasing prices - that is a sign of strength. And Oracle also shows vastly increased revenues.

IBM is lowering their prices - that is a sign of weakness. IBM is even doing some things for free, which smells desperation.

IBM POWER6 servers were several times faster than x86 servers, and they costed 5-10x more.

IBM POWER7 is ~10% faster than x86 in some benchmarks, and costs only 3x more:

IBM POWER8 will maybe be slower than x86? Then IBM needs to cut prices even further. Cutting prices is a sign of weaknesses, it signals that no one wants the product.

There will come a time when x86 will catch up on POWER cpus, and x86 will be faster, and cheaper. IBM does only high margin business, and IBM kills off low margin business. There will be no money to make if IBM sells more expensive and slower POWER servers. Will IBM kill off POWER servers then? POWER servers is the main platform which AIX runs on. If POWER is killed, what shall AIX run on, then?

Coincidentally, IBM is planning to kill off AIX, sometime in the future. IBM have confirmed this officially:

Maybe AIX will be killed, when POWER servers are low margin business?

Thus, IBM is showing sign of weakness, and Oracle is showing sign of strength. The new Oracle T4 servers holds several world records. For instance, the TPC-H database benchmarks shows that four T4 SPARC cpus are as fast as eight POWER7 cpus. But there are benchmarks where POWER7 is stronger. The trick is that Oracle can optimize the whole system, from software to hardware and make it run faster than another vendor who puts together different components without optimization. Oracle gives the best database performance today. And this is important to companies, which is why Oracle can increase the prices and still get new customers.

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