Oracle CEO Ellison: Hardware And Software Are Equally Important

In recent times, some tech companies have been considering their position with regards to hardware and profitability, tempted to transfer emphasis to the world of software and services, and its healthier margins.

Not Larry Ellison, though. In a recent speech at a conference in Japan, he reaffirmed Oracle's commitment to producing custom hardware for its software products. That's despite the fact that Oracle's software and support revenues were up last quarter, in comparison to a 16 per cent fall in hardware.

At Oracle's OpenWorld conference, Ellison asserted: "You have to be in the hardware business and the software business, to get the best possible system. We believe it's the right idea, we believe it's the next generation of computing, we believe all the pieces have to fit together."

There is certainly a synergistic element to the two facets, which is probably why HP eventually thought better of flogging off its PC arm (eventually merging the group with its printer division instead).

Ellison pointed to Apple as a leading light in terms of tight software and hardware integration, and success therein. He also underlined the fact that Oracle's advanced servers were booming, raking in a billion dollars a year in revenue.

He emphasised the strength of these advanced servers, packed with huge gobbets of Ram and speedy flash-based storage, which he argued are cost competitive with large server farms (they don't need as much electricity, or physical space).

Oracle is certainly continuing down the hardware path, and with some conviction, it would seem.

Source: Computerworld