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Oracle acquire Sun Microsystems?

is this a horizontal, vertical, or diversifying acquistion for Oracle?

what are Oracle reasons for the acquistion?

what are Sun Microsystem's reasons to agree to the acquistion?

explain your reasons.thanks

3 Answers

  • 1 decade ago
    Favorite Answer

    First off, Oracle is a software company. And though Sun tends to be viewed as a hardware company, it is not!! It is a systems company. And, in fact, Sun has steadily ramped up its software business in recent years. Sun Solaris and Java were instrumental in Oracle's decision to acquire Sun. So this isn't really a software company buying a hardware one.

    To get the bigger picture here you have to view it in the context of what's going on within the system vendor landscape more broadly. At the risk of overstating things, the system vendor landscape is being reconstituted into big, highly integrated companies that can do it all.

    This is how essentially all computer companies used to be, but that way of business gave way to the horizontal industry structure epitomized by the likes of Microsoft and Intel.

    Oracle has poked at this sort of thing before. Unbreakable Linux and in-house virtualization work were early efforts. But the purchase of Sun lets Oracle take this to the next level. Consider these sound bites from the press conference: "Tightly integrate the Oracle database to some of the unique high-end features of Solaris," Sun's operating system; "for the first time deliver complete integrated computer systems, applications to disk;" and deliver "complete industry-in-a-box."

    This is not to say that Oracle may not divest or shutter segments of Sun's portfolio that don't post the right kind of financial return. But this looks to me like a very serious play to vertically integrate. With their applications portfolio, it's actually a more vertical integration than even IBM offers directly, for the most part. (IBM does have some industry-specific solutions but not at the same scale as Oracle Financials and Manufacturing.)

  • petrin
    Lv 4
    5 years ago

    investors have been looking forward to that Oracle could pay a great top type for solar inventory. a lot of people nevertheless Oracle could purchase solar for $9 per proportion, which replaced right into a lot extra effective than the proportion value while the deal replaced into introduced. on the turn side, Oracle's stockholders could have considered solar as no longer too reliable of a employer that could desire to placed a rigidity on Oracle if offered.

  • 1 decade ago

    Sun just wasn't getting the return on investment. The corporation was in slow decline. A few years back I gagged over Oracle CEO Larry Ellison's interview when he declared the computer industry would eventually boil down to two, maybe three players. The big fish would swallow up the little fish. Ellison is the richest of any active CEO at the moment.

    Oracle wants the high-end servers that Sun offered. Much discussion what happens to a few of the Sun software projects. Thank goodness that Java is OpenSource and should continue. Unknown is whether JavaFX and NetBeans will live or die. JavaFX offered the possibility to integrate home appliances with micro computers... something Oracle never was involved with and I can't see them getting involved with.

    Already, I see some portions of the Sun website shutting down. It looks like a done deal after federal regulators authorize the sale.

    At this junction, it pretty much looks like Google is the only framework for independents to make a viable product, but then again, we will be required to obtain license.

    And, I really don't care. All of my efforts to make a living with code got outsourced. I would argue making 3 software giants will make them an attractive target for foreign takeovers.

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