Oracle's 'Exadata mini' would aim for midmarket

Summary:If Oracle follows through on its midmarket Exadata box, the company would garner an extra $1 billion to $2 billion in revenue.

Oracle is prepping an Exadata mini appliance geared toward mid-market customers, according to an analyst.

The company is expected to unveil this Exadata mini at its OpenWorld conference in October, said Piper Jaffray analyst Mark Murphy. It's unlikely that Oracle would call its latest Exadata a "mini," but Murphy said it's the best he could come up with to highlight that the company is launching a lower end version of its database appliance.

In a research note, Murphy wrote:

Our checks and analysis indicate Oracle will introduce an Exadata "mini" box at its OpenWorld user conference in October. The device is a mid-market database appliance designed to be extremely easy to manage and small enough to sit underneath a desk. We estimate a price point of $100K-$200K, well below Exadata prices of $500K-$2.5M. This is an important strategic move for Oracle because thus far, Exadata's price tag has created sticker shock for all but the very largest organizations.

If Oracle follows through on its midmarket Exadata box, Murphy estimated that the company would garner an extra $1 billion to $2 billion in revenue.

More importantly, Oracle would be able to make its Exadata machines more mainstream. Among some of the details via Murphy:

  • The Exadata could fit under a desk;
  • Customers wouldn't need a database admin to maintain the Exadata environment;
  • The focus of the Exadata mini would be ease of management over running complex enterprise applications.

Add it up and Oracle seems to be making a play for the SMB market, which has traditionally be Microsoft's turf. In addition, this new Exadata box could expand Oracle's server market share, which is just above 7 percent through the second quarter, according to IDC.

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Topics: Data Centers, Data Management, Enterprise Software, Hardware, Oracle, Software, Storage

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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