Oracle Corp. has launched a Database Appliance, a Linux-based server that targets midmarket partners and Microsoft SQL Server customers. The Oracle Database Appliance runs on Intel x86 hardware, but partners should not confuse the appliance with commodity servers that Oracle CEO Larry Ellison loathes. Indeed, Oracle Channel Chief Judson Althoff says the appliance is a highly engineered system that will help to drive Oracle’s server hardware revenues higher.
Althoff and Lydia Smyers, VP of worldwide alliances and channels, position the appliance as a reliable, affordable, engineered system from Oracle’s enterprise family. Althoff said the appliance is ideal for partners serving customers outside of Oracle’s core 2,000 enterprise customer list. The appliance has four processors, each with six cores. The total horsepower is 24 cores of Intel processing power with 12 terabytes of raw storage, all triple mirrored, Althoff said.
The appliance runs the Oracle Database 11g R2, so it will support the entire Oracle 11g application portfolio. Oracle has not announced any plans to ship or offer applications on the appliance. But Althoff mentioned a hypothetical scenario where customers may have extra, unused cores available to run applications. At the same time, Oracle is working with ISVs (independent software vendors) and channel partners to build a partner ecosystem around the appliance. True believers include Avnet Technology Solutions, a major distributor that works closely with Oracle.
The Oracle Database Appliance leverages Oracle Real Application Clusters on a 2-node Sun Fire server cluster running Oracle Linux, according to Oracle. The Sun server is designed around x86 processors.
Ironically, the Oracle Database Appliance arrives the same week that Oracle CEO Larry Ellison said he doesn’t care if Oracle’s x86 server revenues drop to zero dollars. Instead of worrying about commodity server sales, Ellison said he wants Oracle to focus on high-value, high margin Exadata and Exalogic servers.
Beyond the Chip
Althoff is quick to draw a line between commodity x86 servers and the Oracle Database Appliance. “We’re not interested in low-margin commodity businesses,” said Althoff. “We’re not going to rebrand somebody else’s R&D and slap our label on it. The Database Appliance is a high value-add, engineered system.”
As Oracle’s commodity x86 server sales fade away, Oracle still expects its overall server revenues to grow. “We’ll see net new growth for our higher margin products, which will lead to net new growth for the total server business over time,” Althoff predicted. “There are 300,000 Oracle software customers who are not running Oracle hardware. This product is squarely targeted at that market.”
Oh, and just for good measure, Althoff ended the conversation by taking aim at Microsoft’s SQL Server database business. “We see an opportunity for our partners to go after Microsoft markets as well. You can consolidate eight or 10 SQL Servers onto Oracle and one Database Appliance box,” Althoff asserted. Symers said the Database Appliance is available immediately to the channel.
Meanwhile, Microsoft continues to march forward with its own database and platform efforts. The forthcoming Windows 8 Server release, for instance, will include at least seven enhancements that may interest database administrators and Microsoft partners, according to SQL Server Magazine.
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OK – I think this is my last comment on this topic for awhile. I like their use of the term “highly engineered systems” here to try and convince folks it is worth the extra $. I am just hopeful that all this confusion about SPARC, Solaris, x86 and Solaris, x86 and Oracle’s version of Linux, Oracle’s own virtualization offering, and Exa-mania, will help customers become wiser about figuring out how to avoid these type of heavy lock-in products, and they look at more modern alternatives.
Getting yourselves into all-Oracle “highly engineered” systems certainly feels like 10+ year lock-in with rising taxes over time.
Bill,
The VAR Guy can count on a few things to start each day: Plenty of vendor news, a good cup of latte… and a timely comment posted by you.
The VAR Guy promises to keep “vendor lock in” in mind as he continues to cover RISC and high-end systems that don’t adhere to the low price/high volume business model Intel pioneered.
-TVG
[...] Oracle Database Appliance: Linux System vs. SQL Server [...]
“We’re not going to rebrand somebody else’s R&D and slap our label on it”
That was funny!
While I thought I was done commenting, seeing this article today I thought made a very good point about the future relevance of Oracle. Nothing happens overnight, as it took 30+ years of General Motors making bad products to finally hit a bottom, but the writing is on the wall for the long haul with Oracle as they continue to try and “protect, protect” their old models.
http://www.businessinsider.com/boxnet-2011-9
Have you priced out the software on this appliance, supposedly targeted at the SMB space? It is absurd. Oracle forces SMB customers to use their Enterprise Edition version of 11g (at the every day low price of $48,000 per core factor license) and, for all intents and purposes, forces customers to use RAC for EE (at the every day low price of $23,000 per core factor license). The total cost for this appliance, after software is added to the cost, will be in the $250,000 range.
Joe E@4: Yes, indeed, that was funny.
Bill@5 and Sam@6:
The VAR Guy welcomes your healthy dose of skepticism and constructive criticism. A few follow-up thoughts.
1. Comparing GM to Oracle?: Yes, GM spent a decade or more building bad products before overhauling its business. But Oracle doesn’t build bad products. Oracle charges a premium for its products but The VAR Guy hasn’t heard customers complaining about quality. So comparing Oracle to GM doesn’t exactly work.
2. Oracle SMB Pricing: The VAR Guy would agree… This appliance isn’t built or priced for small businesses. It’s more for the mid-market and up, The VAR Guy believes. Though our resident blogger has not performed a price analysis.
Overall, The VAR Guy concedes: Oracle needs to make sure it’s innovating instead of simply coupling proprietary technologies (Sparc, Solaris, etc.) into high-end solutions. But if you notice, this appliance is built on x86 and Linux…
Thanks again Bill and Sam. The VAR Guy appreciates your constructive criticism. You engage in a great dialog without shouting. The VAR Guy appreciates it.
-TVG
I agree that the appliance is aimed at the upper mid-market from a software perspective. The difficult part about that proposition is that it does not scale beyond one server. If you are out of IO, memory, or internal disk, it is a rip and replace. The hardware is sized for the lower SMB space, but the software is all enterprise. It doesn’t suit anyone very well.
Sam,
The VAR Guy will keep your constructive criticism in mind. It sounds like Avnet ordered and sold about 100 of the servers. Our resident blogger will try to determine how Avnet’s VARs are positioning the appliances to customers, typical use scenarios, etc. And if the VARs didn’t manage to sell the servers, The VAR Guy will report that as well.
-TVG