Global CIO: Oracle Dumps HP After Co-Creating 'Most Successful Introduction Ever' - InformationWeek

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9/16/2009
04:07 AM
Bob Evans
Bob Evans
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Global CIO: Oracle Dumps HP After Co-Creating 'Most Successful Introduction Ever'

Oracle president Charles Phillips said a new product co-created with HP had generated the biggest new-product pipeline he had ever seen. Despite that, HP is out and Sun in on Exadata 2.

Just how hacked off at Hewlett-Packard is Oracle CEO Larry Ellison? He's so furious that he's dumping HP as the hardware partner for what he's called Oracle's "most successful introduction ever" that's triggered the biggest new-product sales pipeline the company's ever seen.

Ellison, after getting hammered relentlessly for months by HP and IBM as they ravaged Sun's customer base and cost Oracle many tens of millions of dollars, has begun swinging back in the past week against both companies but has aimed his most-aggressive punch at HP by dropping it as the hardware supplier for the sophisticated Exadata database machine.

During two separate conference calls with financial analysts in the past 10 months, Ellison raved about Exadata as the ultimate expression of hardware-optimized software and said its dazzling performance was far superior to that of Teradata and would establish new standards for performance and capability.

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And in the second of those two calls in mid-March, Oracle president Charles Phillips said that the speed and power of the jointly developed Oracle/HP Exadata product had been a huge attraction for many CIOs who'd seen it in action: "The [Exadata] pipeline is the largest build I've ever seen in terms of a new product," Phillips told the analysts.

But oh what a difference 6 months can make. Just one month after Ellison and Phillips made those comments at the that mid-March conference call with financial analysts, Oracle announced its intentions to acquire Sun and put itself into very direct competition with Hewlett-Packard for servers and storage, and to a lesser extent with IBM since IBM has scaled back dramatically its hardware offerings in the past few years as it's transformed itself into a company powered not so much by hardware as by its software, services, and financing product lines.

Since then, however, that acquisition has been delayed by regulators first in the U.S. and shameless foot-dragging now in Europe, as we've covered in detail here at Global CIO, and into the breach have rushed IBM and Sun and to a lesser extent Dell, picking off hundreds of Sun customers with marketing programs focusing on Sun's status as a lame-duck IT partner.

And in swinging back, Ellison and Oracle have announced Exadata 2, which he says is "twice as fast as Exadata V1 for data warehousing, and it's the only database machine that runs OLTP applications. Exadata V2 runs virtually all database applications much faster and less expensively than any other computer in the world," Ellison said in a statement.

Elsewhere in the statement, Oracle was quite explicit in emphasizing the many and essential contributions Sun products and technology are making to Exabyte 2—here's a sample:

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