Why are all the mega technology vendors suddenly so focused on next generation data warehousing and analytics?
Primarily, it's because Oracle wants to move down the information technology stack into what has traditionally been the realm of server and storage players. Today, more than a third of compute and storage demand is generated from traditional data warehousing and data mart implementations. HP, EMC, IBM and Sun/Oracle have been carving up this large and profitable market for the past 15 years, with each player generating billions in revenue.
In the last three months, however, Oracle has totally changed the game. Using IBM's age old bundling strategy, they have created a Data warehousing package (Exadata - dbase/Sun servers/Sun storage) that challenges the price and performance metrics that drive this market.
Despite outward appearances, this move is not offensive! It is, in fact, a defensive play against the success of Netezza Corporation, which has completely redefined the price/performance leadership benchmark for this space. The defensive strategy of bundling allows vendors to maximize performance on hardware blocks of compute and storage. This approach allows them to increase common parts and reduce bill of material (BOM) costs, thus producing less expensive offerings.