How’s the hardware thing going Oracle?

Oracle announces its fourth quarter revenue on June 20. One thing I’ll be looking out for is the company’s performance in hardware sales.

Four years have passed since Oracle plonked down US$7.4 billion to buy Sun Microsystems. The goal was to become a leader in the high-end server business – Oracle calls them “Engineered Systems”. That’s code for an expensive box loaded with Oracle database and applications.

To date the strategy hasn’t worked. Sales have not been strong. The company’s hardware revenue dropped 18 percent in 2012. Market share fell from just over five percent to a whisker over four percent.

Perhaps the biggest admission of defeat – although no-one in the company would dare admit it – is the worldwide server alliance Oracle formed with Dell.

Oracle boss Larry Ellison continues to tell the world the Sun acquisition was strategic and profitable. Maybe there are people who believe that. The simple truth is the world is moving to new computing models built around the cloud and those clouds don’t run on Oracle kit.

One thought on “How’s the hardware thing going Oracle?

  1. It’s because of how bad a company Oracle is. From what I remember they did have some nice tech to work with, but being the assholes they have has left them with no goodwill and hardly anyone willing to deal with the guys who bought a company so they could sue the most important mobile OS right now for things that any one who has basic programming knowledge knows is BS.

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