Netezza teams up with NEC to battle Oracle

* NEC will build database machine using Netezza software

* Will compete with products from Oracle, Teradata

* Netezza CEO hopes for deals with other server makers

BOSTON, Feb 3 (BestGrowthStock) – Netezza Corp (NZ.N: ), a small
maker of database computers, is teaming up with Japan’s NEC
Corp (6701.T: ) to take on Oracle Corp (ORCL.O: ) in the market for
database computers.

The tie-up comes partly in response to Oracle’s purchase of
Sun Microsystems, which puts the world’s No. 3 software maker
in the hardware business for the first time.

NEC will build database computers that allow companies to
store and analyze data about their operations using NEC blade
servers and Netezza software, the two companies said on

Netezza currently only sells database computers that it
builds on its own. More than 3,000 NEC salespeople will sell
the new computer, compared with the 150 who sell Netezza’s
equipment at the moment.

Netezza Chief Executive Jim Baum said his company will earn
higher margins on the machines that NEC sells because licensing
its software is a more profitable business than building
computers. He declined to say how long it would take for the
deal to boost margins.

The Marlborough, Massachusetts, company builds its database
computers using hardware that it buys from International
Business Machines Corp (IBM.N: ). IBM does not help Netezza
market the computers.

Baum said that he hoped to establish similar partnerships
with other server makers as he looks to better compete with
Oracle, which last week closed its $7.5 billion purchase of No.
4 server maker Sun Microsystems.

Other server makers include Hewlett-Packard Co (HPQ.N: ),
Dell Inc (DELL.O: ), Fujitsu Ltd (6702.T: ) and Cisco Systems Inc
(CSCO.O: )

Oracle sells a database product that competes with
Netezza’s. It originally manufactured that device using servers
made by HP, but started using Sun hardware soon after it agreed
to acquire the company in April 2009.

Oracle has not disclosed how many of its 110,000 employees
will sell Sun hardware, but Chief Executive Larry Ellison last
week said he planned to hire another 2,000 salespeople to focus
on selling that division’s equipment.

“This will be an interesting story. How is the industry
going to organize to fight Oracle?” Baum said.

Teradata Corp (TDC.N: ) also sells database machines.

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(Reporting by Jim Finkle; Editing by Steve Orlofsky)

Netezza teams up with NEC to battle Oracle