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By Kate Hanaghan, 14 June 2001 16:45

NEWS The launch of Oracle's latest database has been overshadowed by arch-rival IBM claiming the software is too expensive and contains features already available to IBM customers. Thomas Gregers Honoré, manager of data management marketing for EMEA IBM, said: "There's nothing new in what they are announcing. It's easier to sell your new products if your old products aren't any good." Honoré specifically made reference to 9i's business intelligence services and clustering abilities. He added an IBM database would be 51 to 82 per cent cheaper. However, Oracle has hit back saying that most of the technologies IBM uses are not their own. Chris Ward, product marketing manager of business intelligence at Oracle, said: "Oracle 9i is an integrated solution. All the code is from Oracle, reducing the complexity." The view from analysts is that there are elements of the clustering feature that could save customers money. AMR researcher Peter Urban said that with the latest version, Oracle will give customers the ability to add additional servers to clusters with ease, a feature that could potentially cut costs. Analysts have also been wary of Oracle's estimates that 70 per cent of its user base will upgrade over the next six months. Urban said: "The figure is more like 50 per cent within a year". Urban also emphasised that pricing is a key issue. He argued that the fact that Oracle's database is estimated to be between three and five times more expensive needs to be addressed with the launch. Ward did not accept that the Oracle offering is always more expensive. He claimed that Oracle can undercut IBM and that studies have shown that Oracle databases have a 28 per cent lower total cost of ownership than IBM.