Larry Ellisons recent statements about the Sun business
Larry Ellison said some interesting stuff about the Sun/Oracle merger in the last earnings call. I want put a full quote of his statement in my blog as i consider this statement as an important one:
Thank you Charles. Since we are getting closer to closing the Sun deal I want to talk a little bit about our strategy with Sun going forward. What we are not going to do and what we are going to do. One thing we recognized that Sun just really does not now and is never likely to have the volume to compete in the high volume, low margin business of just selling an Intel server with Windows on it or Linux on it one at a time. We think that high volume, low margin business is a good business as long as you have high volumes. That is something that Dell and HP are very good at and we are going to avoid that business. Instead, we are pursuing the high value, high performance market. Very large SMP machines like the SPARC Solaris M9000 which we will continue to enhance. We are putting the Solaris as new /cache feature that allows the M9000 to run the Oracle database very, very fast. We will not only be focused on SMP machines which have been around for a long time, though we think those SMP machines are best in class. We are also going to be building clusters of industry standard machines and SPARC machines. Those clusters are now called private clouds. That is the more fashionable term for clusters. We are using our software, our operating systems, both Solaris and Oracle Enterprise Linux, our virtualization, the ability to dynamically allocate and de-allocate resources which is essential for cloud computing as well as the integrated networking and integrated storage to deliberately complete private cloud to our customers. Our customers will be able to buy high end SMP machines, high performance and high value for high-end private clouds with all of the pieces including processing, storage and networking integrated together with Oracle/Sun software. We think that will heavily differentiate our offering with the offerings of IBM, HP and Dell. We think we can compete very effectively there and that will deliver high margins and allow us to deliver that $1.5 billion of additional profit in our first full year of having Sun.