Reuters has an interview with Larry Ellison regarding plan’s for Sun.
Q. Why does Oracle, a company that prides itself on high margins, want to get into the low-margin hardware business? Are you going to exit the hardware business?
A. No, we are definitely not going to exit the hardware
business. While most hardware businesses are low-margin,
companies like Apple and Cisco enjoy very high-margins because
they do a good job of designing their hardware and software to
work together. If a company designs both hardware and software,
it can build much better systems than if they only design the
software. That's why Apple's iPhone is so much better than
Here are the two questions that mention energy efficiency.
Q. Oracle's done integrated hardware and software design with the Exadata database machine. But Exadata uses standard Intel chips. Are you going to discontinue Sun's SPARC chip?
A. No. Once we own Sun we're going to increase the
investment in SPARC. We think designing our own chips is very,
very important. Even Apple is designing its own chips these
days. Right now, SPARC chips do some things better than Intel
chips and vice-versa. For example, SPARC is much more energy
efficient than Intel while delivering the same performance on a
per socket basis. This is not just a green issue, it's an
economic issue. Today, database centers are paying as much for
electricity to run their computers as they pay to buy their
computers. SPARC machines are much less expensive to run than
Q. Is your plan to use SPARC to compete by lowering a data
center's electricity bills?
A. No. Our primary reason for designing our own chips is to
build computers with the very best performance, reliability and
security available in the market. Some system features work
much better if they are implemented in silicon rather than
software. Once we own Sun, we'll be able to plan and synchronize
new features from silicon to software, just like IBM and the
other big system suppliers. We want to work with Fujitsu to
design advanced features into the SPARC microprocessor aimed at
improving Oracle database performance. In my opinion, this will
enable SPARC Solaris open-system mainframes and servers to
challenge IBM's dominance in the data center. Sun was very
successful for a very long time selling computer systems based
on the SPARC chip and the Solaris operating system. Now, with
the added power of integrated Oracle software, we think they can