Michael Dell, eponymous founder of the computer company, has indicated that HP may have to raise the prices of its server hardware if it goes ahead with plans to scrap its PC division.
During his keynote at Oracle Open World, Dell said having a PC supply base provided economies of scale necessary to keep down costs across all business divisions.
Just 5% of the microprocessors and disc drivers go into servers and storage, with 95% going into PCs, he said. "Give up that scale and you need to raise your prices."
Dell provides end-to-end solutions
However, Dell is repositioning itself as more than just a PC maker. Dell described his company as a business systems integrator rather than a computer manufacturer. "We are not a PC company, but an end-to-end solutions provider," he said.
During the speech, Dell previewed the company's 12th-generation Dell PowerEdge server. The server will be able to consolidate a rack of servers into just one and process Oracle database queries 60 times faster, he claimed. It will have 1,024 cores and 40 terabytes of DRAM.
"This is game-changing," he said. "It will allow different types of workload. The lines between IT and business are vanishing."
Oracle reaffirms Sun commitment
Separately, Oracle's head of systems, John Fowler, affirmed the company's commitment to its Sun commodity hardware based on Intel's x86 chips, following recent remarks from CEO Larry Ellison that he didn't care if it went to zero in a recent quarterly earnings call. "We don't make any money selling those things," Ellison had said.
"Larry made some rather 'interesting' comments about Intel, that he doesn't care a lot about the Intel server business. That, of course, led to a lot of calls to my office," said Fowler.