Oracle saw steep declines despite assuring customers that it will continue to invest in Sun's server business. Shipments dropped 29.5 percent year over year to 42,528 units, while revenue declined 38.7 percent to $598 million. Uncertainty continues to harm the business, but some buyers may also be waiting for new Ultrasparc processors, Hewitt said.

He's not writing off Oracle's hardware business yet, however; he noted that sales cycles on RISC servers are usually longer, and new chips are on the way.