Oracle

(ORCL:)

has no plans to sell

Sun Microsystems'

(JAVA)

hardware business, a published report says.

"We are definitely not going to exit the hardware business," Ellison said in an email interview with

Reuters

. "If a company designs both hardware and software, it can build much better systems than if they only design the software. That's why

Apple's

(AAPL) - Get Report

iPhone is so much better than

Microsoft

(MSFT) - Get Report

phones."

Ellison's statements dispel speculation that he only wanted Sun for its software units after Oracle reached a deal last month to buy Sun for $7.4 billion,

Reuters

notes. Sun also was a target of

IBM

(IBM) - Get Report

.

His statements are contrary to the belief of some analysts that Oracle, the world's largest database software maker, may divest Sun's server business and retain just its software assets, such as Java and Solaris,

Reuters

reports.

Ellison said he plans to boost investment in Sun's SPARC microprocessors, which are the brains in the company's line of high-end Unix computers, according to the news agency.