Oracle parts ways with HP, post Sun deal

Oracle has ended a computer-building partnership with Hewlett-Packard (HP) as Oracle prepares to acquire Sun Microsystems. HP and Sun are fierce rivals in the markets for server computers and storage equipments and this move was expected as Oracle had agreed in April to buy Sun for more than $7 billion.

Oracle and Sun have jointly developed a second-generation version of a specialized database computer, called Exadata Version 2. Exadata Version 2 is world's first OLTP (Online Transaction Processing) Database Machine and was unveiled today by Oracle Chief Executive Officer, Larry Ellison and Sun Executive Vice President John Fowler. This launch comes almost a year after Ellison announced his company's entry into the hardware business with help from HP. At that time, he had said that HP would be a key ally in future effort. Oracle and HP had launched the first version of this specialized computer a year ago.

"Exadata Version 1 was the world's fastest machine for data warehousing applications," said Ellison. "Exadata Version 2 is twice as fast as Exadata V1 for data warehousing, and it's the only database machine that runs OLTP applications. Exadata V2 runs virtually all database applications much faster and less expensively than any other computer in the world."

Exadata Version 2 is the first product to come out with Sun's hardware and Oracle's software. An Oracle spokeswoman said Oracle would continue to sell the Exadata V1 computers which were built in partnership with HP until existing inventory is sold out.

Oracle has not revealed information about the sales of the Exadata machine. But during the company's most recent earnings call, Ellison said that it was one of the most successful products he had launched since he founded the company more than 30 years ago.