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On June 4th, Dell and Oracle made an announcement that caused quite a stir in the IT community. At Dell’s enterprise forum in San Jose, the President of Enterprise Solutions for Dell, Marius Haas, revealed a new alliance between Dell and Oracle. Dell named Oracle as its preferred enterprise infrastructure partner and Oracle named Dell as its preferred x86 server partner. The strategic alliance will help both companies advance in the direction toward becoming all-purpose IT providers. The overall goal will be to provide better solutions at a higher value and lower cost, while also providing one contact for data center services and monitoring.
The partnership has many implications. It greatly expands the customer base for both companies. Dell wants to tap into the larger enterprise business, in which Oracle has a presence, and Oracle wants to move toward bigger markets, such as small businesses, in which Dell has a presence. Because both companies are trying to expand, each company has what the other wants. This alliance also creates more competition for HP. Oracle used to partner with HP, but their partnership has deteriorated due to ongoing lawsuits. With HP being Dell’s longtime competitor, no one is positive that the alliance wasn’t made as somewhat of a slap in the face for HP.
How will the Dell-Oracle partnership affect the solution-providers side of the IT business? The answer was left open-ended at Dell’s forum on June 4th. However, some IT solution providers seem excited about the partnership. According to an article from www.crn.com, the owner of a California-based IT solution provider said, “For us, customers hesitate to buy a solution that Oracle does not support and Oracle in the past did not support Dell. So there was no way for us to crack that egg before this.” With Oracle and Dell supporting one another, solution-providers should expect more business with companies who tend to purchase Dell and Oracle products.
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