How will the opposition between HP and Oracle affect Open Source?

    Last week, some electronic media reported on the success of Hewlett-Packard in Russia ( one , two ). But it seems that these successes will be short-lived. An interesting document came into my hands. It was compiled by the IT department of one of the largest companies, most likely after the recent two-fold (!!!) price increase for Oracle software for HP servers.

    It can be used to judge the attitude of customers to current events. (It’s no secret that HP servers are often supplied to work specifically with Oracle software.) In short: Oracle has ceased to be neutral with respect to hardware, so now you need to look towards other software vendors and Open Source. A tackle of excerpts from the above document.

    A brief analysis of the feasibility of using Oracle DBMS on HP hardware.

    “... During 2010, the relationship between Hewlett Packard and Oracle deteriorated sharply, which led to a doubling in the price of Oracle DBMS licenses for new HP servers [1]. And judging by the events described below, this is only the first link in the chain of increasing the cost of Oracle products for HP and not only. Below are some suggestions for this and some recommendations.

    HP and Oracle Management.

    Since October 2010, Leo Apotheker, the former head of SAP AG, has been appointed HP CEO. This appointment caused the expected negative response from Oracle, since SAP is its main competitor in the market of ERP-systems. According to Larry Ellison, Apotheker "was fired from SAP for not managing the company." [2]

    It is clear that when the former head of a competing company becomes the head of a close partner, this does not help to strengthen mutual understanding. In addition, many analysts associate Leo Apotheker’s appointment with HP with the desire of HP management to strengthen its software business. Oracle understands that in the future, a potential competitor can "grow" from this area of ​​HP.

    The situation is complicated by the fact that the current president of Oracle is Mark Hurd, who recently had to leave HP with a scandal. Founder and CEO of Oracle, Larry Ellison criticized the decision of the HP Board of Directors, calling it "cowardly," and proposed the presidency to the former head of Hewlett Packard, which led to a lawsuit between the companies. Obviously, the best way for Heard to wipe his nose on HP’s board of directors is to get around Hewlett Packard in the server market.

    The Russian market of servers and DBMS.

    According to IDC Russia Quarterly Server Tracker, in the third quarter on the Russian server market continued to grow sales of servers of standard architecture, which amounted to more than 55% in annual terms. Significant growth was also noted in the segment of more powerful servers - more than 80% year on year. More than half of the total server market in terms of money is HP.

    The DBMS market is growing rapidly and, according to Forrester analysts, by 2013 its total volume will reach $ 32 billion. Oracle's share in the Russian DBMS market is almost 70%. and, in fact, provides a monopoly position. Obviously, Oracle will strive to create the most favorable conditions for its own equipment (Sun), because at the same time as the licensing coefficient for Itanium's processors is increased, Oracle lowered prices for SPARС. Such an approach could negatively affect the sales of HP (and Intel) servers, because Microsoft also announced the cessation of development of Windows Server and SQL Server products for Itanium. [3]


    After the purchase of Sun Microsystems, Oracle products were no longer hardware-neutral, and their use may lead to the inability to change the supplier due to the high cost of the transition ("vendor lock-in"). Oracle’s skyrocketing pricing could not only be the Itanium’s “last nail in the coffin,” but could also jeopardize the entire market for heavy HP / Intel servers. Ultimately, all this will affect HP customers.

    In light of the above facts, it is recommended to consider the possibility of using third-party software products and software of the OpenSource category on HP equipment, in particular Linux and PostgreSQL. This will not only reduce "dependence" on a particular supplier, but also significantly reduce the cost of royalties. [4] Since in some cases, when purchasing an Oracle DBMS, the proportion of software reaches 80% of the cost of the entire system, taking into account the hardware platform.

    [3] / chips / microsoft-kills-off-itanium-server-support
    [4] "

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