Ellison alters Oracle’s strategy to increase competition against Cisco and EMC joint venture

Oracle co-founder Larry Ellison announced that he company’s new hardware is the cheapest among the products of the three competitors- Cisco Systems, EMC and Oracle itself. The company had launched the new hardware on Wednesday. Ellison’s claims hint that the company has adopted new strategy to cope with the competition in the market. Effectively, Oracle acknowledges that it was beat by Cisco and EMc in understanding the market.

Until now, Oracle had always been seen to set performance on a higher priority than price. This is for the first time that the company is announcing a launch emphasizing the price of the hardware, rather than its quality. During the announcement, Ellison admitted that the company’s prices were indeed a concern for customers.

Oracle’s new offering is a strategy to compete with EMC and Cisco’s combined offering of the two-socket servers. Ellison accepted that the joint venture, VCE, offering from its competitors has gained huge success in the market. However, he went on to say that although the companies did not match Oracle in performance, they offered the product at a much rate, which ensured an upper-hand for the duo.

Ellison now plans to offer VCE a competition for the core business of the two-socket information center. He proposes to do so with the aid of price range that the company would offer its customers. Ellison said that he has been studying the market and has found out that this is the only way for Oracle to dive in into the competitive market.

Although Ellison had resigned from the position as the company’s CEO last year, he continues to offer it the duties nevertheless. He acts in the capacity of Oracle’s Chairman and CTO presently. As far as his current endeavor is concerned, Ellison has already updated the company’s fifth generation of hardware. The systems will be launched by the end of next year, the company’s spokeswoman said.