SAN FRANCISCO, California -- Oracle announced its entry into the storage and database hardware business with Hewlett Packard (HP) as partner, Oracle CEO Larry Ellison said here at Oracle Open World.

Oracle will enter the storage server and database server market in hopes of providing a technology solutions to the growing and complex database and storage demand from enterprises.

Working with computer company HP, Oracle expects to rival products of existing storage and database server players, Ellison said.

Mark Hurd, Chairman of the Board and CEO of HP, said the computer giant is excited to work with Oracle in delivering these two joint products.

"This is a great thing for Oracle and HP and for our customers," said Hurd who joined the announcement over a video feed beamed into Moscone Center.

Ellison said HP and Oracle have co-developed these new products for three years, adding that select customers are already running these systems for a year.

Ellison said Oracle's storage server, dubbed Exadata Storage Servers, aims to solve the growing database requirements of organizations.

Meanwhile, Ellison said that HP Oracle's Database machine will compete directly with existing rival products.

The HP Oracle Database Machine is made up of a grid of Oracle Database Servers and a grid of new Oracle Exadata Storage Servers packaged in a single rack ordered as a complete system from Oracle.

The latest offering is a result of Oracle's and HP's long-time engineering relationship, Ellison said.

Ellison explained that Oracle Exadata Storage Servers intend to solve the "database bandwidth problem" that occurs between database servers and conventional storage.

The Oracle CEO said the HP Oracle Database Machine is a powerful machine configured for data warehousing.

Hurd said the two new products run on HP Proliant technology combined with Oracle software and Intel's latest microprocessors.

HP Oracle Database machine includes a grid of eight database servers, 64 Intel processor cores and Oracle Enterprise Linux; and a grid of 14 Oracle Exadata Storage Servers that include up to 168 terabytes of raw storage and 14 Gigabits per second data bandwidth to the database servers.

"I know you have a burning question. How much music can this hold," Ellison quipped as he introduced the Oracle Database machine to attendees of Oracle Open World.