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Oracle Buys Sun

Wow – it might be one of those times when Twitter could have been my friend. While I was writing about Sun, and what might happen, or should happen, Larry Dignan has taken a shot over my bow with the news above.

This must have been one of those hush-hush things, where the principals meet in an undisclosed location, over the weekend, to be able to spring it on Wall Street early Monday morning.

Just a small bit -

Oracle said Monday that it will buy Sun Microsystems for $9.50 a share in cash, or about $5.6 billion excluding debt, in a deal that plunges Larry Ellison & Co. into the hardware market. The company added that the acquisition of Java “is the most important software Oracle has ever acquired.”

Sun Chairman Scott McNealy (left) with Oracle chief Larry Ellison.

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With the move—valued at $7.4 billion including Sun’s debt— Oracle also becomes a full-fledged hardware player. Oracle has been dabbling with the storage appliance with HP, but the acquisition of Sun puts the company in an entirely different realm. Oracle and Sun have been long-time partners.

and

Ellison said in a statement:

“The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems. Oracle will be the only company that can engineer an integrated system – applications to disk – where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up.”

That pitch sort of sounds like Apple’s approach on the consumer side. Apple’s strategy is to integrate hardware and software to make things easy. Oracle with Sun appears to be the Apple of the enterprise.

The rest of the story can be found by following the link of the author’s name.

This really makes sense, and I wonder why no one was writing about it before the announcement – the standing joke is that Larry Ellison has more money than any deity you can name.

Dignan says its all about Java, as Oracle apps are very dependant upon it, but if Java was that important, you might think IBM would not have been so quick to walk away.

I wonder what will happen to the ’smaller projects’ like Sun Office. ???

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3 Comments

I have worked in the SI business for 30 years and once for Oracle Complex Systems in the mid 80’s. I am a very happy Oracle shareholder because had IBM purchased Sun, there would be a great risk that java would have been made proprietary! Oracle will likely maintain java as open source and given Oracle’s great track record of R&D investment, java will flourish!

I can’t wait to see what Oracle does to tune their product to take advantage of Solaris and the Sun architecture! Way to go Oracle!

Michael Mauro, thanks for the comment.

Sun had no hope of survival by the late 1990s when McNeely Locked-in on selling “boxes” and stopped listening to the marketplace. Sun created huge value with Solaris and Java, but had no idea how to capture that value so it just kept doing what it always did. Eventually, the market didn’t see the value in the boxes any more, and the value of Solaris and Java had been frittered away. A lesson for any company that it must adapt to market needs or it will be squashed. Read more at http://WWW.ThePhoenixPrinciple.com

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