Oracle faces hardware challenge

The database giant Oracle is struggling to ship servers manufactured by subsidiary Sun Microsystems, according to Gartner. The number of servers shipped by Oracle in Europe fell by more than a third (35.3%) in the last quarter. Gartner’s latest figures show that the company’s Sun Microsystems hardware division shifted just over 10,000 units in the third quarter of 2010, compared with more than 15,600 in the year- ago quarter.

Oracle, better known for its business applications and relational database technology, only entered the hardware business when it acquired Sun at the start of 2010. Its server market share stands at 1.7%, says Gartner. Oracle was the only major vendor to lose market share in the quarter. Hewlett Packard grew its share by 9%, Dell by 23%, IBM 10% and Fujitsu 6%.

Negotiation tip: if you want to buy Sun servers, then now is a good time to pressure Oracle into giving great discounts!

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