It is no small matter that the database appliance product line is being driven by former HP CEO and now Oracle Co-President Mark Hurd. Just how big a bite Oracle can take out of HP's server business rests with whether Hurd can take the channel centric culture he created at HP and drive it into every nook and cranny of the Oracle culture.
Hurd gets the channel and he knows how to close a sale. If partners know that Hurd is putting his sales stamp on the database appliance they will sit up and take notice. All signs are that is the case. Hurd, in fact, kicked off the big database appliance announcement calling out the product as "one of the most exciting announcements for channel partners and the SMB." Just getting Hurd talking channel helps the database appliance sales effort.
There is more than a little irony that the database appliance launch is coming on the heels of Oracle's first quarter results on Monday in which hardware sales dropped five percent, that has the Wall Street power players looking closely at the method behind the Sun madness.
At the same time hardware sales were declining hardware gross margins were on the rise from 48 percent to 54 percent. Oracle CEO Larry Ellison says he expects revenue growth in the hardware business in the next fiscal year.
If Oracle gets its channel locked, loaded and firing on all cyclinders that hardware revenue growth may come sooner.
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