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Oracle's storage revenue is also fading away. During the first quarter of 2012, Oracle's storage hardware revenue plummeted 17.5 percent to $70.4 million, according to analyst firm Gartner. However, Oracle's NAS business grew 42.9 percent over last year thanks to the strength of its ZFS file system-based appliance family, Gartner said.
NetApp, in that same report, retained its customary No. 2 position in the storage hardware market with first-quarter revenue of $691.5 million, up a solid 9.8 percent over last year. That gave NetApp a 12.7 percent share of the overall market, up from its 12.5 percent share last year.
Building or acquiring a significant storage business would help Oracle be more competitive in the burgeoning converged infrastructure business.
While Oracle competitors including IBM, Hewlett-Packard, Cisco, EMC and Dell have introduced converged infrastructure solutions that tie server, storage and IP networking into a single vendor, integrated solution for building data centers and moving customers towards cloud computing, Oracle's engineered solutions either lack a solid storage component or include its ZFS technology.