Oracle: In The OS Biz

Linux software Oracle operating system

Reporters typically don't pay much mind to vendor endorsers of any particular press release, but in this case Oracle lined up some interesting signatories: Executives from IBM (Bill Zeitler), Dell (Michael himself), HP (Mark Hurd) and Ingram Micro and Tech Data all wrote nice ditties. Notably absent: Red Hat itself and (duh) Microsoft.

Should Oracle succeed in this venture, it will be one more step toward marginalizing the operating system. Eyes shifted immediately to Red Hat for reactionand its stock was socked 24 percent as of last Thursday. But the impact on Microsoft should also be scrutinized.

One former Red Hatter requesting anonymity summed it up, and I paraphrase here: Oracle is sticking to its "appliance" NC game plan where users don't give a hoot what the OS is. The only difference now is the OS they won't care about will be a cheapo Linux vs. a pricey Solaris or Windows.

Solution providers should pay attention. Oracle Chief Architect Ed Screven said the advent of a more complete Oracle stack will help the company better penetrate SMBs with low-cost solutions. That could be good news for Oracle VARs. On the other hand, Oracle Co-Prez and CFO Safra Catz said that with this program Oracle can make customers' problems its problems. "If [customers] want, we can take responsibility for the whole stack," she said.

Third-party trusted advisers need to watch that trend. Said one rival software company exec: "This is all about how to win contracts and alienate business partners."

Oracle CEO Larry Ellison clearly relished imparting this Red Hat news. He laughed throughout the presentation (one analyst characterized it as a "maniacal giggle"). Conspiracy theorists think this is payback to Red Hat for its JBoss acquisition.

Some did take note of the irony in Ellison's calling Red Hat support options "pricey."

"Given what Oracle charges for its support, he'd better watch his words," said one observer.

Is Oracle's Red Hat move a laughing matter? Get back to me at (781) 839-1223 or via e-mail at [email protected]