California-based Oracle Corp. is betting on its high-end servers, and the results are beginning to reveal themselves. A 12 percent upsurge in earnings of $8.4 billion was recorded in the opening quarter, with gains of $1.8 billion.
Solid results in fresh software programs purchases and a rise in license updates and support services revenue are chiefly credited with the increase, but double-digit revenue gains for its higher-end servers also played a part. The numbers was just higher than experts' predictions of $8.35 billion.
The company has been shifting specialization away from lower-end server hardware to higher-end equipment along the lines of the Sun Sparc M4000 servers after a decrease in server numbers after the purchase of Sun Microsystems in last year.
The Battle Of Tumbling Revenue
The Sun purchase had caused hardware sales to decrease. Hardware numbers in the 1st quarter were $1.03 billion, a drop of 5 % from the exact quarter last year. There was, nevertheless, increase in the core Sparc servers line.
Oracle executives observed that premium hardware systems, such as the Sun Sparc M5000, grew in the double digits for the primary quarter, even as x86 server sales continued to drop, evidence that validates a shift in specialization to high-end systems. Senior leadership said they were not worried concerning the decrease in lower end hardware sales and that the specialization will carry on on high end systems.
Reasoning For Shifting Sun Servers Main focus
Upon acquiring Sun Microsystems, Oracle clarified it had no objectives to compete in the area of low end servers but rather focus on higher-end systems, such as the Sun Sparc M4000 and Sun Sparc M5000 servers.
Apart from decreasing purchases for those systems, a top cause for Oracle to stop aspiring to compete for low-end hardware business is that to have a payoff a large sales volume is needed. With other hardware leaders like Dell and Hewlett-Packard currently contending in the lower end system market, the likelihood of growing sales volume to significant sufficient sales to make a profit is really diminished.
Focus On Higher End Sun Servers
Among the high end Sun servers Oracle is moving to are the M-series Sparc servers, including the M3000, M4000, M5000, M8000 and M9000. This series of adaptable Sun servers is crafted for demanding commercial systems. Oracle's other high end servers include Exadata and Exalogic.
New Sparc servers are in the pipeline, too, as part of the shift away from lower-end servers, like x86 servers, to premium solutions. When reporting profits for the initial quarter, Oracle furthermore revealed further revamping of its higher-end line, including a new Sparc microprocessor and Sparc Supercluster server.
Oracle leadership have said they expect hardware numbers to continue to climb as the focal point on top-notch systems is boosted, eventually letting the company get back to the numbers it enjoyed ahead of acquiring Sun.
Whether you happen to be in the market for a lower end or higher-end server, SourceTech has a wide selection of reasonably priced servers, such as new, refurbished and used Sun Sparc M4000 and Sun Sparc M5000 servers.
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