Oracle Corporation (ORCL) vs. IBM: Battle Of The Servers

Oracle Corporation (ORCL) vs. IBM: Battle Of The Servers
By Sanatan2014 (Own work) [<a href="">CC BY-SA 4.0</a>], <a href="">via Wikimedia Commons</a>

Oracle Corporation (NASDAQ:ORCL) and International Business Machines Corp. (NYSE:IBM) are still going at it. This time it’s Oracle on the offensive again, claiming that its new servers are faster and less expensive than those made by IBM.

Oracle Corporation (NASDAQ:ORCL) executive VP John Fowler sent an email statement to Business Insider today saying, among other things, “IBM Customers are being wildly over-charged for the performance they’re getting.”

Oracle Corporation (ORCL) vs. IBM: Battle Of The Servers

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The company announced earlier this week that it was releasing two new servers: the M5, which is the company’s largest and fastest computer, and the T5, which is a newly developed mid-range server. Oracle’s co-founder and CEO Larry Ellison compared the company’s new servers to those made by International Business Machines Corp. (NYSE:IBM) in his presentation.

He basically indicated that Oracle Corporation (NASDAQ:ORCL)’s new servers are 80 percent cheaper than IBM’s servers and go much faster than them.

After that presentation, International Business Machines Corp. (NYSE:IBM) reminded Oracle that it has been able to force the company to quit making claims like the ones Ellison made in his presentation earlier this week. IBM’s comment, made Wednesday, motivated Fowler to send his response to Business Insider.

Oracle’s hardware division was acquired in 2010 when the company purchased Sun Microsystems. Since then, Ellison has been focusing the division on offering high-end servers which compete directly with those sold by IBM. The revenue from Oracle’s hardware division has fallen every quarter since it acquired Sun, according to Mercury News.

Shares of Oracle Corporation (NASDAQ:ORCL) rose 1 percent in Thursday afternoon trades, while shares of IBM rose almost 1 percent.

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