Despite the hype around its high-end engineered “Exa” systems, Oracle hardware revenue continued to swoon in the second quarter when it was off 23 percent year over year. But, CEO Larry Ellison said that the company has just about turned the corner.
Oracle is finally learning that the hardware business is not the software business. Revenue for the company’s Sun Microsystems-rooted servers fell 14 percent in the second quarter compared to the year-ago period. And gross margin on those hardware sales is returning to earth.