SUN Purchase Analysis

Oracle owns Sun. It moved to acquire the failing giant ahead of IBM and now it has access to a great amount of installed base of Sun servers. But what will Oracle do with a hardware company, and what will remain of it after Larry Ellison is done with Sun?

  • Hardware - Oracle has it's R&D focused on databases, and to some extent on underlying operating systems. But Oracle does not want to meddle with expensive chip research just to maintain the SPARC platform. So servers division will go on sale to HP, IBM, EMC, Dell or some venture capital firm - lock, stock and barrel.
  • Solaris - A wonderful OS, leader in many platforms. Oracle will want to make it's DBMS one-click installable on an empty machine, so Solaris for Intel will probably be the weapon of choice for this move. But in the process, Solaris will become an embedded
  • MySQL - a possible casualty of the RDBMS war - Oracle will need to position this product carefully, to be less competitive with Oracle RDBMS and more competitive to embedded databases and free competition. If Oracle cannot do this, they'll most probably let MySQL die of age by simply not developing it any further.
  • Consulting division - Some will be cut-off, some will become Oracle consulting and integration, to take even more off the high-margin integration consulting business
  • Open source initiatives - THE BEST PLACE for developer breeding. If Oracle retained any smarts, it will maintain the strong support to open source, but steer it towards Oracle as development platform.
  • JAVA - The weapon of mass destruction for Oracle - Just like open source initiatives, excpect that Java will continue to flourish - simply because Oracle wants more and more software that will use their databases.

In any case, things won't be the same. It is sad to see another one of the high quality system giants go.

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Stephen said...

Very specific and nice sharing my dear friend. But I dunno much about database things.

Gliese581c said...

Oracle can still keep the SUN hardware business to deliver a complete package to their customers. The customers do not need to think of the hardware (including storage) anymore.


sarahofalk said...

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