Undoing a Disaster, Oracle Plans To Take Sun Sales Direct -- Redmondmag.com

The Schwartz Report

Undoing a 'Disaster,' Oracle Plans To Take Sun Sales Direct

Today could be a big day for those who implement data center technology, databases, applications and software based on Java.

As reported, Oracle today will outline its plans for integrating Sun Microsystems. Part of that plan includes hiring 2,000 engineers and sales people to sell integrated appliances that include provide integrated databases, app software, servers, storage and network gear, according to published reports. The integrated appliance model could be a multi-billion dollar business, Oracle CEO Larry Ellison tells The Wall Street Journal.

However Oracle will sell its products direct to Sun's top 4,000 customers, Ellison tells The New York Times. Those 4,000 customers account for 70 percent of Oracle's revenues. Ellison indicated Oracle will move away from relying on Sun's partners to serve those customers.

"The partner model was disastrous, and we are immediately changing that," Ellison tells the Times. Such a move could leave a lot of partners out in the cold. Will those displaced partners move to pushing gear from Hewlett Packard, which earlier this month inked a $250 million agreement with Microsoft to jointly develop their own next-generation data center technology?

Or will Dell, which is looking to build its own partner ecosystem, become an attractive haven? How will Oracle's move affect the way all those players treat partners in the future?

Drop me a line at [email protected].

Posted by Jeffrey Schwartz on 01/27/2010 at 1:14 PM

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