Feeds

Oracle uses Sun as springboard in Q4

More hardware appliances on way

The essential guide to IT transformation

Looking ahead to more systems sales

Oracle gave itself some pretty wide error bars when it dished out guidance for the first quarter of fiscal 2011 ended in August, but was pretty precise, if conservative, about what it expected from its hardware systems business.

Catz said on the call that new software license sales would grow by between 4 and 14 per cent at constant currency and given prevailing exchange rates, that would work out to growth of between 2 and 12 per cent as reported. Non-GAAP revenue growth would be between 41 and 45 per cent as reported, including Sun obviously, and earnings per share would be 17 to 18 cents. Not much in the way of a hard number.

But Catz said that the Sun business would generate $1bn in revenues worldwide at constant currency, putting a stake in the ground, and one that she said was conservative. She reiterated the long-held target from Oracle that it can extract $1.5bn in operating profit from Sun in its first year of possession in fiscal 2011 and another $2bn in fiscal 2012.

Ellison agreed that the $1bn hardware number for the first quarter was conservative. "We are focused on growing the Sun business and growing that business very rapidly," Ellison said. "We are adding a lot of sales people, but it takes a lot of time to get them up to speed." He said that Oracle would more than double the Sun sales force to help it peddle its more streamlined and profitable server, storage, and switching products.

One of the products that Ellison has been hot to trot on since last September is the Exadata V2 database appliance cluster, which is based on Sun hardware and Oracle software. Ellison said that in the fourth quarter, Oracle's Exadata V2 beat out IBM in thirty deals, Teradata in nine deals, and Netezza in seven deals. He added that the Exadata V2 revenue pipeline for fiscal 2011 is approaching $1bn.

Charles Phillips, the other co-president at Oracle, said that the company added 400 customers to its Red Hat Enterprise Linux knockoff, Oracle Enterprise Linux, during the quarter and that the customer base for this product now numbers 5,000 companies.

Phillips said that Oracle was working on what he called an "Oracle VM Machine," which would be a bundle of Sun server and storage hardware and presumably Oracle VM Xen-style virtualization. "We can package these technologies together in a way our competitors can't."

Well, at least in the x64 server racket. Makers of mainframes, proprietary midrange boxes, and RISC/Unix platforms have had such control for a decade or two, depending on the system. Which Phillips knows full well, or should. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?