Eye on Oracle

Jul 7 2010   2:35PM GMT

Oracle to face challenges in pushing customers to its complete stack

Mark Fontecchio Mark Fontecchio Profile: Mark Fontecchio

According to a recent Gartner report on Oracle modernization (subscription needed), Oracle will continue to push end users to its entire IT stack in an effort to continue to drive revenues, especially on the software side. But it won’t be easy.

The report states that Oracle will be aggressively targeting customers on other vendors’ legacy systems — in particular, IBM’s mainframe and System i (previously called the AS/400) servers. Dale Vecchio, the Gartner analyst, said Oracle will do this through Tuxedo, its mainframe rehosting application, as well as its other Application Grid products. Vecchio claims that Oracle’s acquisition of Sun gives it a stronger migration argument to those running legacy systems.

Not everything is hunky dory, though, in Vecchio’s view. Oracle faces a bunch of challenges in this quest to move customers to its full stack, which now includes databases, middleware, applications and hardware. First, Vecchio said Oracle must quickly direct its salespeople to focus their message around the integration of hardware and software.

Second, the addition of Sun hardware “does have the potential to disrupt relationships that Oracle has had with companies such as HP or Fujitsu, as they are likely to be seen as competitors, not just partners.” We have already seen this to some extent, as with Oracle yanking HP’s Solaris support agreement.

Finally, Vecchio said that Tuxedo isn’t appealing as a modernization platform to some customers because “it’s an old, established transaction platform.”

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