Monday, April 20, 2009

Oracle buys Sun

That Sun was putting itself out in the market and someone would step up to pay a decent price was written in stone. And finally it has happened with Oracle buying Sun.

Personally I think this is a good deal for Sun. Before the talks with IBM, Sun stock was trading around $3-4 and now they are being sold at $9.50 per share. That is a very good deal for the investors and Sun employees. IBM and Sun had many similar products and would certainly have resulted in job losses. Oracle is flush with money and will surely continue to invest in Sun products since there is little overlap.

Some of my interesting thoughts about this deal:
  • Oracle must be loving the thought of owning Java since its the crucial glue in their software offerings.
  • Contrary to popular perception, Oracle won't kill MySQL - instead they will continue investing in it so that they get an entry in the low-end database market. Customers can then be upgraded to Oracle as they grow - a win-win situation for Oracle. Note that since MySQL is open-source if Oracle won't develop it, someone else surely will.
  • Oracle now has access to the entire storage stack - Oracle database running on Java, ZFS, Sun hardware, Oracle backed Linux. That is a pretty strong offering.
  • Every M&A deal brings with it some amount of layoffs, resignations, cultural changes but its this very churn that Sun has needed since a long time. Majority of the people will come of smiling eventually.

2 comments:

Mr.MS. said...

Little Overlap?

1) Btrfs v/s ZFS
2) Weblogic v/s GlassFish
3) Oracle Backed Linux v/s Solaris
4) Oracle VM v/s Sun xVM
5) Oracle v/s MySQL!
6) (They some IDE too) v/s Netbeans!

Kalpak Shah said...

Oracle got a very cheap deal - they did buy out their competition for all the overlapping products. Not to forget the IP, the good engineering teams of Sun and a lot of Sun customer accounts. They got their hands on hardware which is very lucrative in terms of margins.

The new Exadata product from Oracle which uses Sun hardware below is a master-stroke and this is just the beginning.