OpenWorld: Oracle Expands x86 Infrastructure Reach With Dell Relationship

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Michael Dell




Dell on Wednesday expanded on its budding Oracle relationship with the integration of Oracle management software for Dell solutions, as well as other software and services offerings, in a move that could make it easier for Oracle to expand its presence in the cloud.

Dell CEO Michael Dell unveiled the new Dell-Oracle integration and expectations for further integration going forward during a Wednesday keynote at the Oracle OpenWorld conference.

Dell is finalizing a move to take the company private as a way to transform it into an enterprise solution-focused organization, and Michael Dell in his keynote said his company has invested $13 billion over the last five years as part of that goal.


[Related: New Dell-Oracle Alliance To Bring Engineered Systems To Dell Customers, Partners]

"We have to invest for the next five, 10, 20 years. ... Dell's a company 100 percent focused on the customer and investing in their success," he said.

Dell is pushing hard to get a bigger stake in the data center, said Rick Gouin, CTO of Winslow Technology Group, a Boston-based Dell partner.

"An enhanced relationship with Oracle adds legitimacy to Dell's goals," Gouin said.

An enhanced relationship between the two could also help Oracle be more relevant in the cloud, wrote Paul Teich, senior analyst at analyst firm Moor Insights & Strategy, in a Wednesday research note.

Oracle's 2009 acquisition of Sun Microsystems gave Oracle both SPARC-based and x86-based server lines, but Oracle has since focused its resources on developing the SPARC side of its hardware, Teich wrote.

However, he wrote, "Oracle has not yet managed to become a credible public cloud infrastructure supplier or even a credible multi-tenant hosting or private cloud infrastructure supplier. These server markets today demand x86 processors, and at a much lower pricing structure than Oracle's SPARC-based solutions."

Dell, in the meantime, is the world's second-largest server vendor, just behind Hewlett-Packard. However, Teich wrote, Dell's server shipment numbers may be undercounted by analysts because Dell Data Center Services (DCS) produces servers for hyperscale deployments, an area where server numbers are hard to count.

"Oracle is so far behind the learning curve for low-priced, high-volume hyperscale systems that a native development program would siphon away a significant amount of their SPARC R&D spend, and most likely would prevent Oracle from creating a competitive SPARC product offering. Dell has the enterprise-grade server technology and volume server business model to do credit to Oracle's volume software stack," he wrote.

NEXT: Understanding The Dell-Oracle Relationship

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