Oracle will be slashing the prices of its data centre equipment, producing lower-performance servers to snap up customers who just don’t want to pay out big unnecessarily.
Oracle founder and CTO Larry Ellison announced a fresh family of the firm’s Engineered Systems servers yesterday, collectively called the X5. Highlights include the Virtual Compute Appliance X5, Oracle FS1 Series Flash Storage System, and sixth-generation Oracle Exadata Database Machine X5.
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With Cisco and EMC’s joint venture VCE, the smaller, cheaper, two-socket x86 servers have been very successful in the data centre world.
“We have a new strategy,” Ellison said. “We’re going to compete for that two-socket data center core business. And from what I can tell, the way to compete is to have the lowest price.
“Our appliances and engineered systems deliver the highest performance by a large margin at the lowest purchase price for the data center core. They get the job done faster, more securely and more reliably than any competitive offering available today,” said Ellison.
Ellison, the fifth richest person in the world with a net worth of $54bn, said that Oracle’s customers “want their data centers to be as simple and as automated as possible”, and with the X5 range, they will be paying ‘50 percent less’ but willing to handle “TWICE the performance”.
To demonstrate Oracle’s X5 server pricing, Ellison flashed this slide comparing the new pricing structure to Cisco’s:
Oracle calls this plan the ‘Datacenter of the Future’, but it certainly isn’t new to the idea as it has been defined by its competitors such as VCE and Cisco. Thus, the main thrust of the strategy is a boots on the ground price war.
During the announcement, Ellison reportedly took the opportunity to take a swing at EMC too, the parent company of VMware.
Ellison said: “Our list price is less than half of their discount prices,” adding that Oracle will negotiate even lower prices if the customer wishes.
Here are some of the freshly announced X5 boxes:
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I would need to seriously look at the Oracle licencing model for such technology. It has to be flexible to meet customer sector needs and not the whole worlds. Very importand when we are using OpenStack technology.