HP vulnerable in 2011, says Oracle CEO

Oracle CEO Larry Ellison has fired shots across the bows of bitter rival HP, attacking the performance of its infrastructure kit and warning it will be "vulnerable" to market share losses next year.

Oracle CEO Larry Ellison has fired shots across the bows of bitter rival HP, attacking the performance of its infrastructure kit and warning it will be "vulnerable" to market share losses next year.

Speaking on a conference call to mark Oracle's second quarter financial results, Ellison said HP's servers were "slow, expensive" and had "little or no software value add" as he set his sights on the number two position in the global server market, behind IBM.

"We expect overall that our new generation of Sun machines, Exadata, Exalogic and SPARC Superclusters will enable us to win significant share in the high end server market. And put us into the number two position behind IBM, very, very soon," he said.

Added new hire Mark Hurd: "Since joining Oracle I've met with and visited many customers that have expressed enthusiasm around our strategy of engineering hardware and software that works together.

"That enthusiasm translates into an Exadata pipeline that has now grown to nearly $2bn," he added.

Net income at the enterprise software vendor jumped 28% year-on-year for the second quarter of its fiscal 2011, as global spending in the enterprise environment showed signs of improvement.

Oracle banked $1.87bn (£1.2bn) on total sales of $8.6bn, up 47%. New software license sales did better than expected, up 21% to $2bn, while license updates and product support sales rose 12% to $3.6bn.

Hardware systems product revenues were $1.1bn, with gross margins on the Sun business up to 53%.

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