Fans of the old Sun Microsystems may be wondering how the server business is doing at Oracle some three years after the acquisition. Over at GigaOm, Barb Darrow writes that Oracle’s gamble on hardware just isn’t paying off.

Here’s the problem, since it entered the hardware business, Oracle hasn’t sold enough engineered systems to make up for lost sales of lower-end machines, according to third-party researchers. Its hardware revenue and unit share is headed south. For the fourth calendar quarter of 2012, Oracle server revenue was down 18 percent year over year according to both Gartner and IDC. Meanwhile, as GigaOM’s Jordan Novet reported last week, the “other” server vendors — companies like Quanta and Wistron – saw their aggregate revenue rise nearly 22 percent in the fourth quarter compared to the year-ago period.

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