Friday, June 4, 2010

The Oracle effect on Sun Microsystem VARs

The new policies introduced by Oracle in terms of “Oracle hardware support” for Sun servers are creating tensions among Sun VARs. The new policies from Oracle are “sinking” the customers as told by some VARs.

One Sun Microsystems systems integrator commented that it was getting pretty bad. The maintenance renewals and services are 3 times what they had in terms of price. Oracle also revoked the prepaid discounts and other flexibilities. Now Oracle charges 12% of the Sun hardware cost per year but in the past it depended on the hardware type and the multiplier was roughly 5% 0r 6%.

"Before this year, a customer buying a Sun 5240 server got three years of support for $3,800, including a discount for paying for the three years at once," this partner said. "That same box will now cost $7,699 to support for three years, a customer told.
Under the Oracle hardware support policy, Sun's Solaris operating system will no longer be supported on non-Sun hardware. Even there are not much customers running Sun Solaris on HP or IBM hardware, those that do should now look for another alternatives.

Who is getting the benefit: HP and IBM

A Sun Microsystem integrator form southern state expressed his company’s desire to switch to Hewlett-Packard and IBM servers. He told, “"We'll probably move more customers to HP overall," he said. "It's an easier choice at the low end in the Linux world. For high-end Solaris accounts, [IBM's] AIX is an easier move."

More over both the HP and IBM are keenly recruiting the big Sun partners and also have got some toehold. Thus the Sun VARs can obtain better deals from HP and IBM to poach the SUN customers. Hope the Oracle will take some active moves on this and make their stands better in the market!!!

NOTE: This is my personal opinion and I do not intent to hurt anyone’s feelings!!!!!

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