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Oracle strains HP ties by selling servers

ORACLE Corp CEO Larry Ellison steered clear of the brouhaha surrounding his most contentious new employee - Mark Hurd - but turned up the heat in his other latest trouble-making tactic: upsetting the long-standing order of the technology world with a plunge into selling computer servers.

Ellison didn't mention the controversy over his hiring of Hurd, the ousted CEO of Hewlett-Packard Co, in a two-hour long kickoff keynote speech on Sunday at the Oracle OpenWorld conference for developers and customers. HP, which forced Hurd out last month in the wake of a sexual harassment investigation, is suing to stop Hurd from working at Oracle.

Hurd was due to speak yesterday.

Instead of fueling the drama about Hurd, Ellison offered fresh evidence of why Oracle is angering longtime partners and deepening entrenched rivalries.

He showed off a new machine from Oracle called the Exalogic Elastic Cloud, which is a combination of 30 servers and other hardware and software that Ellison touted for its speed and ease of maintenance versus systems that are patched together from different vendors.

The machine is the result of Oracle's US$7.3 billion acquisition this year of fallen-idol server maker Sun Microsystems, which made Oracle a heavy player in selling computer hardware. Oracle was already the world's biggest database software maker and a heavyweight in computer applications.

Oracle now competes against HP and IBM Corp in servers.

Ellison's hiring of Hurd as an Oracle co-president landed the company a starring role in Silicon Valley's latest soap opera, further straining Oracle's ties with HP.

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