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To: Barry Grossman who wrote (72535)	1/30/1999 5:05:00 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 186894

dailynews.yahoo.com Yahoo! News Business Headlines Saturday January 30 9:08 AM ET H-P To Sell Oracle Database With Its Computers By Duncan Martell PALO ALTO, Calif. (Reuters) - Hewlett-Packard Co. (NYSE:HWP - news) Friday said that it will be the first computer maker to sell Oracle Corp. (Nasdaq:ORCL - news)'s 8i database software program preloaded with some of the computers it sells to large businesses. The two companies will also collaborate on Oracle's plan to produce a server computer, a powerful machine that runs networks but doesn't require a full-blown operating system, like the Microsoft Corp. (Nasdaq:MSFT - news) Windows NT. Oracle has its sights set on Microsoft and Windows NT, a product targeted at the business market that has been gaining ground in the low end of the computer market against various forms of the Unix, an operating system used to help run powerful computer networks. The announcement comes on the heels of a recent pact between Oracle and Sun Microsystems Inc. (Nasdaq:SUNW - news), one of the largest makers of server computers that power the World Wide Web, in which the two companies would work together on pairing a stripped-down operating system with Oracle database software. If Oracle's deals with Sun and H-P bear fruit, they could obviate the need for NT, which competes principally with Sun's own brand of the Unix operating system called Solaris and with Hewlett-Packard's, called HP-UX. The Oracle-equipped computers H-P is selling is designed to be pulled out of the box and attached to a network. Products will be available in the first half of this year and prices will start at $7,500 for a low-end system, Hewlett-Packard executives said on a teleconference call. Although the systems will have a pared-down operating system, they would still need a piece of software called a microkernel, which would help Oracle's database software ''talk to'' the hardware. H-P executives said Oracle went with H-P over rival Sun because Sun does not make servers that run on Intel Corp. (Nasdaq:INTC - news) microprocessors, while H-P does. Analysts reckon technological link-ups like Oracle's and H-P's are part of a trend that provides a way to simplify what can today be the onerous task of running networks with complicated operating systems. ''The less you mess around with an operating system, the better,'' said Kimball Brown, an analyst with market research firm Dataquest. ''The more people who muck around with it, the worse it works.'' Brown added that it is still too soon to tell if the partnerships Oracle has with Sun and Hewlett-Packard would gain momentum in the business market, but noted: ''It's the direction where a lot of things are going.'' Redwood Shores, Calif.-based Oracle is the largest maker of database software and the second-largest independent software maker while Hewlett-Packard is the No. 3 computer maker. --------------------------------------------------------------------------------