Oracle Changes IT Strategy…Good or Bad?

The acquisition is finally complete…On January 27th, Oracle purchased Sun Microsystems, costing over $7 billion! This deal goes down in history as being the world’s largest maker of database software turned  into a hardware company. Oracle will now be manufacturing servers, storage solutions, and other high-end hardware, as well as take over Sun’s Solaris operating system, Java, and the MySQL open source database.

I think this move has both positives and negatives involved. For people who own stock in Sun Microsystems, they enjoy a great deal of satisfaction as there is a 37% jump! Also, Oracle benefits from the deal since they will be acquiring a lot of services and hardware that they didn’t have before. On the negative side, many jobs are lost as well as tremendous cost cutting actions will be taken for Sun. In fact, 40-70% of Sun workers will lose their jobs to this acquisition.

See what Oracle’s CEO, Larry Ellison has to say…


2 thoughts on “Oracle Changes IT Strategy…Good or Bad?

  1. Obviously, this is not good news for Sun employees who are getting laid off. But it is terrific news for Oracle. Oracle gets about 50% of its revenues from services, and Oracle now has access to Sun’s large installed base. Oracle gets to “own” their own version of Java, which Oracle will use in its Fusion project to integrate all the products it has acquired in the past few years. “Owning” Java means Oracle can extend it’s drive to “own” the whole technology stack, i.e., it can provide the hardware, the server software, the middleware and applications. Oracle can certify all the hardware and software in the stack, make sure it all runs, and optimize performance. Oracle has been doing this for years, and this extends their reach into the technology stack. For anyone implementing Oracle technology, this is very good news.

  2. I’m also interested in what happens to MySQL. Sun bought MySQL, and Sun is usually the place where freeware goes to die. Of course now, Oracle owns Sun and therefore, MySQL. MySQL does not seem to be in the news as much as it used to be. That’s natural, as Sun did not promote it. It will be interesting to see what Oracle does with MySQL.

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