As everybody already knows, Oracle is buying Sun for about $7.4 billion, including Sun’s debt ($9.50 a share in cash). Some interesting thoughts from Larry Dignan, Editor in Chief of ZDNet.
- [Oracle] added that the acquisition of Java “is the most important software Oracle has ever acquired.”
- Oracle also becomes a full-fledged hardware player.
- Oracle and Sun have been long-time partners. […] “More Oracle databases run on the Solaris Sparc than any other system,” said Ellison, noting Linux was second. “We’ll engineer the Oracle database and Solaris operating system together. With Sun we can make all components of the IT stack integrated and work well.”
- Oracle with Sun appears to be the Apple of the enterprise. Indeed, Oracle President Charles Phillips noted that the company is looking to offer everything from apps to the disk.
- Oracle’s stack of IT stuff now includes:
- Java;
- Solaris;
- Enterprise applications ranging from CRM to ERP to business intelligence;
- The database (Oracle and MySQL);
- The middleware;
- The storage hardware;
- Cloud computing services;
- And servers.
- Art of War approach:
- Oracle gets to annoy IBM—and own Java—over a few pennies a share more than Big Blue was willing to pay.
- Oracle gets to kill MySQL. There’s no way Ellison will let that open source database mess with the margins of his database. MySQL at best will wither from neglect. In any case, MySQL is MyToast.
- Sun has a big installed base. All the better to upsell applications into.
- Sun was relatively cheap compared to Oracle’s other acquisitions. The price was above the Hyperion buyout but below PeopleSoft and Siebel.
- Oracle saves Sun management from what could have been a complete debacle following the IBM takeover talks. The Sun board had been split on the IBM deal. Today, it’s all roses.
The official Oracle press release can be found here.
It is clear that this deal will change the IT landscape quite massively. And the consolidation is definitely not finished…
Cross-posted on the Innoveo Blog.