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Dave Donatelli Will Spearhead Oracle’s Converged Infrastructure

Oracle's Growth Continues: Key Updates in Fiscal 3Q15

(Continued from Prior Part)

Dave Donatelli joins Oracle

On June 16, 2015, Oracle (ORCL) announced that Dave Donatelli, who was previously heading HP’s (HPQ) enterprise hardware operations, is the executive vice president of Converged Infrastructure. Now, he will be overseeing engineered systems, server, storage, and networking hardware. In March 2015, he left his position as the executive vice president and general manager of the Enterprise Group at HP and joined Oracle.

In the past, Donatelli has been associated with EMC (EMC). Read Why EMC is targeting converged infrastructure to learn more.

As the above chart shows, Oracle leads the Integrated Infrastructure and Platform space. IBM and HP are other leading players in this space.

Oracle launched the 5th generation engineered system in 2015

On January 22, 2015, Oracle launched its fifth generation engineered system called “Oracle Exadata Database Machine X5.” These new generation engineered systems are the product lines led by Exadata and other “Exa” products.

Oracle’s engineered systems or “converged” systems are a kind of server. Data storage and networking systems have been integrated into a single product. This converged system can be offered through the cloud or on-premise as a bundled solution. Due to the improved features over standalone servers, these engineered systems carry higher prices and margins than standalone servers.

Oracle claims that its Exadata Database Machine X5 new system is about 40% cheaper than the existing products offered by VCE. VCE was formed as a joint collaboration of VMware (VMW), Cisco (CSCO), and EMC.

If you’re bullish about Oracle, you can invest in the Technology Select Sector SPDR Fund (XLK). XLK invest about 3.41% of its holdings in Oracle.

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