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The always heated ongoing rivalry between Oracle and IBM, just got more contentious, with the recent news that the National Advertising Division (NAD) has called out Oracle for publishing misleading ads in The Wall Street Journal and The Economist claiming Oracle’s T4-4 server is 2x faster and 66% cheaper than IBM’s comparable P795 server.

NAD, a division of the Council of Better Business Bureaus, based in New York City recommended that Oracle discontinue “certain comparative performance and pricing claims” in the national newspaper ads and on the www.Oracle.com website. Specifically, the NAD took exception to Oracle advertisements claim that “Oracle’s SPARC SuperCluster T4-4 system retails for $1.2 million whereas IBM’s P795 high end server costs $4.5 million – an improbable $3.3 million price discrepancy.

The NAD functions as an objective and impartial self-regulatory forum for the advertising industry. In its official determination, the NAD took pains to remain objective. It noted that both the advertiser (Oracle) and the challenger (IBM) produce high quality computer systems.

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