Oracle Corporation has a new strategy, laid out in a keynote address by chairman Larry Ellison at last week’s Oracle Next Generation Launch Event. In a recap segment on theCUBE, Dave Vellante and John Furrier reviewed the highlights of Ellison’s new vision. Because Oracle has integrated network, storage, and compute technologies, it enables the tech company to “make massive margins.” said Vellante. It’s why Oracle “has 5 times revenue multiples on their valuation,” he explained.

This strategy, which Vellante said is essentially the same as their old strategy, except with a focus on driving down cost, is made possible by Oracle’s investment in engineering and their acquisition of information technologies provider Sun Microsystems in 2010. Vellante commented that “Oracle is doings way more with Solaris, storage, and ZFS, than Sun was ever able to do.” He believes that Oracle’s acquisition of Sun is coming into “clear focus.”

The advantage of having the full stack means that Oracle can, as Furrier pointed out, “price-subsidize the low-end server market.” With this ability, Oracle offers “lowest cost, highest performance, and better value,” Furrier said. Despite online buzz, Vellante expressed his view that “Oracle isn’t in a race to the bottom because Oracle can commoditize the hardware and sell software, database, middleware, and applications on top of it and make tons of money.”

It also helps, Vellante said, that “Ellison is a celebrity.” Ellison isn’t afraid to call other companies out on stage. Furthermore, Vellante commented that “systems expertise is moving to the west coast.” In fact, he said that he thinks Oracle is going directly after IBM and EMC with their new engineered system. It helps, he noted, that Oracle is a third lower than EMC in price.

Watch the full segment below, and be sure to check out more of SiliconANGLE and theCUBE’s coverage of Oracle’s Next Generation Engineered Systems Launch Event.