Integration the name of the game, says Oracle

- Wednesday, March 30, 2011

Integration the name of the game, says Oracle

When it comes to the total cost of ownership in technology, 70% is spent on integrating applications, something that Oracle (Nasdaq: ORCL) has focused on to help customers save time and money, Luiz Meisler, president of Oracle's Latin American division, told BNamericas.

"This is a big opportunity. If I'm able to provide integrated solutions per industry, from the business application to the storage, I can potentially reduce cost of ownership by 70%. We've been working on this for the last 5-10 years," he said. Oracle's answer lies in two products - the Exadata integrated data base machine and the Exalogic integrated server appliance.

All Oracle products are designed to work with the cloud, he noted, pointing to the company's having made "a large sale" to Salesforce.com as proof that the technology is cloud prepared. And within the concept of cloud, there are three levels, Meisler said: the presentation - the part that the user sees - which could be on a mobile phone, on an iPad, or even on a TV. Level two is application, where the program is, while level three is the database.

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The end user defines over which medium he wishes to see the first level, the presentation. But Oracle is responding to the next two levels - Exalogic for the application and integration hosting, while Exadata for the data level.

The result of the cost savings "is impressive," Meisler said, giving the example of banking firm BNP Paribas, which employed one Exadata machine to replace four servers and runs 17 times faster. "And if you take the total cost of those four machines [that were replaced], Exadata probably costs about a fifth."

And over the past years, Oracle has bought more than 60 companies, investing more than US$50bn, Meisler said. "Each company that we purchase is integrated to provide a more competitive business solution. Our products are becoming increasingly integrated."

Within Latin America, "the partner ecosystem for us is extremely strategic," he added, estimating that more than 45% of sales are through the channel in revenue terms, and "if you take it to the level of transactions, probably about 80% are through partners."

The executive believes that partners will continue to contribute about 45-50% to the overall level of sales in the region, even as they expand further into underserved areas, as the large businesses - which Oracle serves directly - will also continue to grow.

ITANIUM

There has been much hype over Oracle's announcement that it would discontinue all software development on the Intel Itanium microprocessor, but Meisler insisted that the decision would have little effect on clients and that it just boiled down to good business sense.

"No Oracle client that has bought support for Itanium will lose that support.... The support will continue. But the product wasn't successful and doesn't have much of a future, so there was no reason to continue developing products on it," he said.

During Oracle's fiscal 3Q11, ended February 28, its Americas revenues surged 37% year-on-year to US$4.51bn, representing 48.5% of global revenues. Meisler could not break down Latin America's contribution to the Americas region.

Global net profits for fiscal Q3 surged 78% year-on-year to US$2.12bn.