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Hurd's job: Sell Oracle's Exadata vision

Chris Kanaracus | Sept. 8, 2010
The former HP executive faces a 'huge, untapped' market to sell systems integrated with Oracle's software

As with any system, there is some labor involved in transferring workloads over to Exadata.

Therefore, Hurd's arrival also raises the question of whether Oracle will buy a systems integrator to help flesh out its strategy. Under Hurd's watch, HP made big investments in services through the purchases of EDS and Knightsbridge.

Meanwhile, Oracle already has close relationships with systems integrators such as Infosys, and could conceivably take such partnerships to the next level.

But Altimeter Group's Wang, for one, is unconvinced Oracle will make such a move. It would be less expensive to poach key talent from integrators than to buy an entire company, he said.

In addition, the industry's general move away from on-premises systems toward cloud computing will change services models over time, he added. "They won't need full-scale, Infosys-like staffing."

There will be a shift toward companies that specialize in areas such as SaaS (software as a service) integration or application development on top of vendors' cloud platforms, he said.

Scavo agreed that a services acquisition by Oracle is unlikely.

"Services are not as profitable as software," he said. "[And] whenever they look at cost cutting they look at people. I don't think they want to get into a people business."

 

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