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The chief executive of Oracle has played down speculation that the technology company is poised to move into the low-margin server racks market.
Following on from the firm's recent acquisition of Sun Microsystems, speculation has been mounting that the company could soon expand its operations so as to directly compete against high-volume, low-margin server rack manufacturers such as Dell.
However, Larry Ellison, who now heads the fourth-biggest player in the global computer server market, has expressly stated that Oracle will continue to focus its efforts on the other end of the market, namely by making "high value, high performance" servers.
"We think that high volume, low margin business is a good business as long as you have high volume," he was quoted by the Australian as saying.
"And that's something that Dell and Hewlett-Packard are very good at, and we're going to avoid that business."
The California-based technology firm currently boasts the third-largest share in the global software market, behind only Microsoft and IBM.
Last Updated: 22/12/2009 23:00
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