Oracle To Phase Out x86-Based Servers
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When Oracle acquired Sun last year, it did so for things like the Java platform and the Solaris operating system, not servers running on Intel's x86 architecture. In fact, even though Sun thought it could become a major seller of x86 servers prior to the buyout, Oracle CEO Larry Ellison now says that the company makes next to no money on them and plans to start phasing x86-based servers out entirely in 2012 favor of more profitable Solaris/SPARC-based hardware.
"I do not care if our commodity x86 business goes to zero. We do not make any money selling those things,” Xbit Labs reports Ellision as saying in a conference call with several financial analysts. “We have no interest in selling other people's intellectual property; commodity x86 includes Intel (intellectual property) and Microsoft IP. We do not make money selling that stuff, and we are phasing out that business. We have interest in selling systems that include our IP.”
Ellison told analysts that not only does Oracle fail to make any money on x86-based servers, the company’s salespeople don’t make any money on them either. That’s because the salespeople earn commission based on profit margins and x86 servers frankly don’t have much of a profit margin for Oracle. Ellison says that sales of servers based on the company’s proprietary designs are expected to skyrocket and make Oracle’s margins much more palatable for investors, and hopefully eventually even return to the lofty margins the company was raking in prior to acquiring Sun.
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DJSPIN80
September 22, 2011 at 5:42am
Honestly, this is going to piss off a many CIO's. I expect Oracle to lose customers over this. Their licensing's already draconian (even more than Microsoft for SQL Server), now they're forcing people to purchase unneeded hardware? I wouldn't be surprised if PostgreSQL gains ground because of this.
aarcane
September 21, 2011 at 10:48pm
The market doesn't want more proprietary lockin, and that's exactly what SPARC is. The market wants portability, compatibility, and interoperable solutions. Solaris and SPARC will never provide that, which is why killing their x86 server market (some of the nicest server and storage hardware on the market, but at a premium) will ultimately be the end of Oracle hardware all together.
win7fanboi
September 21, 2011 at 1:42pm
Its a shitty company that makes shitty product. They must be good at giving bribes since lot of agencies in the govt use them and suing successful companies to survive is not beneath them.
win7fanboi
September 22, 2011 at 7:39am
Whereas yours reek of rationality?
Stupid questions like :
Coldrage :
Why has x86 stayed for so long?
doesn't earn you any credence.
win7fanboi
September 22, 2011 at 7:42am
In 3 year 37 weeks you have managed to comment 7 times... including this one. Do us a favor and keep those panties stuffed in your mouth we don't need your eloquent insights.
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