Oracle Buys Sun
bruunb writes "Oracle Corporation (NASDAQ: ORCL) and Sun Microsystems (NASDAQ: JAVA) announced today they have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun's cash and debt. 'We expect this acquisition to be accretive to Oracle's earnings by at least 15 cents on a non-GAAP basis in the first full year after closing. We estimate that the acquired business will contribute over $1.5 billion to Oracle's non-GAAP operating profit in the first year, increasing to over $2 billion in the second year. This would make the Sun acquisition more profitable in per share contribution in the first year than we had planned for the acquisitions of BEA, PeopleSoft and Siebel combined,' said Oracle President Safra Catz."
Well well well. I can see this working well for Oracle - they use Java a great deal... and it should be good news for Sun's open source projects like Netbeans - which would, I think, be maintained under Oracle.
I guess it's a little sad to see Sun unable to continue by themselves, but the writing was on the wall and I think Oracle will keep all the Sun products working, but of course the big question is what does this mean for MySQL?
1s - free
0s - $10 per 0, minimum 100,000 0s
I use Macs for work, Linux for education, and Windows for cardplaying.
This is a big surprise.
Wonder if Solaris will become their main development platform again.
Dual Opteron < $600
Seems oracle.com is down :(
Somehow i did hoped IBM would go and buy SUN, if this is really definitive .. how do IBM and Oracle play together ?
Is this the end of MySQL?
This doesn't bode well for some good hitherto lesser known products from Sun. Personally I'm a bit worried about Lustre.
Maybe this isn't out the of realm of conceivability to others, but it was to me...Oracle is a software company (one that runs a lot on Sun hardware), and suddenly becoming a hardware company has got to be a daunting challenge, regardless of who you are or how smart you are.
The implications are staggering across the board. Maybe Oracle decides they don't want to the hardware, just Java and MySQL (...they got it, finally), but then all that Sun hardware and Solaris...? Or maybe they want to make Solaris/Sun hardware the best platform for Oracle products (already the case as far as I know), then what of support for all their other platforms.
Oracle likes to buy a lot of companies, but they've all been, more or less, niche players in specific markets to fill in the gaps of their own offerings. I can't imagine what "gap" buying Sun will fill, other than something will be certainly be filled.
Is 8am too early to start drinking?
I am deeply disappointed by this turn of events.
IBM would have been a much better buyer, if the deal had to be done.
Oracle? Bleah!
Well, I'll bet the suits at IBM are kicking themselves hard, now that Oracle has control of Java.
A host is a host from coast to coast...
Unless it's down, or slow, or fails to POST!
Oracle+Sun has the power to seriously harm IBM. IBMs big plus was the combination of good hardware + OS + DB + consultants.
Oracle + Sun can now deliver exactly the same.
bye egghat
-- "As a human being I claim the right to be widely inconsistent", John Peel
But SPARC is fucked. Not that it's any great loss, but anyone somehow still heavily invested in SPARC (not too good at reading the writing on the wall, huh?) should be making their transition yesterday. Probably a transition to IBM, which also has a competing database product which is quite credible.
On the flip side, perhaps Oracle will start leasing database-as-a-service boxes based around SPARC, which is about the only thing that could conceivably keep it alive. Why would you buy Sun if you didn't want their hardware? It would be a questionable move at best.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
more likely: will fork furiously and retain aggregate popularity while neither being quite compatible nor actually, ah, storing data reliably.
So, business as usual, then?
Sun = Poorly run company with great products
Oracle = Masterfully run company with shitty products
I wonder how that DNA is going to come together...
I wonder what will be the next big buyout? Novell seems the next likeliest candidate that would be up for grabs (By Microsoft?).
wake up in the morning... mount coffee/
Oracle was wanting its own OS. Not the worst way to get one and not the worst OS to have.
For anyone with morbid curiosity:
From: Jonathan I. Schwartz
To: allsun@sun.com
Subject: Today's Sun/Oracle Announcement
Date: Mon, 20 Apr 2009 04:34:16 -0700 (07:34 EDT)
Today's Sun/Oracle Announcement
This is one of the toughest emails I've ever had to write.
It's also one of the most hopeful about Sun's future in the industry.
For 27 years, Sun has stood for courage, innovation, a willingness to blaze trails, to envision and engineer the future. No matter our ups and downs, we've remained committed to those ideals, and to the R&D that's allowed us to differentiate. We've committed to decade long pursuits, from the evolution of one of the world's most powerful datacenter operating systems, to one of the world's most advanced multi-core microelectronics. We've never walked away from the wholesale reinvention of business models, the redefinition of technology boundaries or the pursuit of new routes to market.
Because of the unparalleled talent at Sun, we've also fueled entire industries with our people and technologies, and fostered extraordinary companies and market successes. Our products and services have driven the discovery of new drugs, transformed social media, and created a better understanding of the world and marketplace around us. All, while we've undergone a near constant transformation in the face of a rapidly changing marketplace and global economy. We've never walked away from a challenge - or an opportunity.
So today we take another step forward in our journey, but along a different path - by announcing that this weekend, our board of directors and I approved the acquisition of Sun Microsystems by the Oracle Corporation for $9.50/share in cash. All members of the board present at the meeting to review the transaction voted for it with enthusiasm, and the transaction stands to utterly transform the marketplace - bringing together two companies with a long history of working together to create a newly unified vision of the future.
Oracle's interest in Sun is very clear - they aspire to help customers simplify the development, deployment and operation of high value business systems, from applications all the way to datacenters. By acquiring Sun, Oracle will be well positioned to help customers solve the most complex technology problems related to running a business.
To me, this proposed acquisition totally redefines the industry, resetting the competitive landscape by creating a company with great reach, expertise and innovation. A combined Oracle/Sun will be capable of cultivating one of the world's most vibrant and far reaching developer communities, accelerating the convergence of storage, networking and computing, and delivering one of the world's most powerful and complete portfolios of business and technical software.
I do not consider the announcement to be the end of the road, not by any stretch of the imagination. I believe this is the first step down a different path, one that takes us and our innovations to an even broader market, one that ensures the ubiquitous role we play in the world around us. The deal was announced today, and, after regulatory review and shareholder approval, will take some months to close - until that close occurs, however, we are a separate company, operating independently. No matter how long it takes, the world changed starting today.
But it's important to note it's not the acquisition that's changing the world - it's the people that fuel both companies. Having spent a considerable amount of time talking to Oracle, let me assure you they are single minded in their focus on the one asset that doesn't appear in our financial statements: our people. That's their highest priority - creating an inviting and compelling environment in which our brightest minds can continue to invent and deliver the future.
Thank you for everything you've done over the years, and for everything you will do in the future to carry the business forward. I'm incredibly proud of this company and what we've accomplished together.
Details will be forthcoming as we work together on the integration planning process.
Jonathan
A host is a host from coast to coast...
Unless it's down, or slow, or fails to POST!
What we have here on one hand is Oracle, a company that is incredibly well run, but with products that don't cover a complete spectrum, and Sun, a so-so run company with a wide range of product lines. This can go two ways, Suns platform quality goes down while Oracles management goes down with it, *or*, and this is the scenario I hope for, Oracle cleans out the dead wood in Sun management, and adopts the Sun technology in force. I've worked on Oracle machines, and Sun machines. I've also delt with both companies sales forces. If the synergy can be hammered out, this can really shake up the business world.
One suggestion tho, keep both names. Use Sun for the hardware, Oracle for the software.
Karma Whoring for Fun and Profit.
It remains a functional relational database. It has a BSD-style license with a very stable, nearly bug-free (see Coverity) core. It has modular design (you can write procedures in Java, C, C++, T/SQL, R, Python and others. You can get commercial support from a company (EnterpriseDB) that doesn't have a vested interest in moving you to a very expensive alternative.
Think global, act loco
I wonder how long it will take Oracle to pretty much give the middle finger to HP and Dell hardware partnerships in favor of the soon-to-be-released OracleFire "product-in-the-box" line...
Java 8 will replace String with String2, which will treat empty string and null the same.
Go green: turn off your refrigerator.
MySQL is in a very different niche than Oracle. When is the last time you saw Oracle used as the back end for a Wiki or a large company use MySQL for an enterprise ERP system? It may happen that somebody uses a product outside of its niche, but like a lungfish on land, it just isn't as effective as something that has evolved to better fill that role.
Think global, act loco
Thankfully, I have recently switched myself (and my clients) over to Postgresql.
It was a sad day when Oracle got the rights to the InnoDB engine, but at least MySQL itself was in the hands of Sun.
With Oracle now owning all the rights to what is probably the biggest free competitor, I think the open source world shouldn't put much stock or investment into MySQL.
I've been quite impressed with the performance and straight-forwardness of PostGres, and will continue to happily use it. I was alawys keeping MySQL in the back of my mind, to try out now and then, but with this announcement, I doubt it'll be worthwhile.
Is there any anti-trust factors to this? Oracle, being a dominant database player, and buying up the biggest open source database?
Aside from that, I find this all very sad. Sun was one of the Unix innvators from the earliest days. Even when they grow large, they still seemed like a "cool company." Healey used to personally answer emails I would send him. Oracle seems to be the antithesis of this; major, corporate, gouging, monster... One can only hope that some of Sun's culture and products will survive.
Love many, trust a few, do harm to none.
MySQL is worth far more to Oracle than to any other company. To anyone else, MySQL is simply worth the present value of its future revenue stream but, to Oracle, it's also worth the impact that it has on its own database revenue streams.
The anti-MySQL ranters who keep posting on /. miss the point that for many, if not most, commercial projects, MySQL is good enough and has a very low total ownership cost. Oracle knows that too, and the mere existence of MySQL puts an effective price cap on Oracle for low-end projects. It's not the number of users who actually switch to MySQL that bothers Oracle; it's the number who threaten to and get a discount as a result.
Look out for some significant changes to MySQL licensing and pricing. It's my guess that databases just got a whole load more expensive.
We are entering an era where energy conservation is going to be critical. Niagara2 can provide 32 threads for 72 Watts. This is a great CPU for a hypothetical Oracle on-site enterprise database appliance. Add a hot-failover-to-cloud, and you can have a database that doesn't even stop for upgrades or floods.
Think global, act loco
Per-bit, with the 1's stored being stored free, and the 0's being stored at $10.00 each, payable in bunches of 100,000.
At last, InnoDB and MySQL owned by the same company. I guess that's a good thing.
Didn't get that impression last time I attended one of their seminars a few weeks ago.
The multicore stuff Sun is doing is miles ahead og anything anybody else is doing,. I hope Oracle do not axe that.
IANAL but write like a drunk one.
On paper, Rock
Why won't anyone play with scissors? :(
I think the interesting question is, does Oracle care about SPARC?
The majority of Sun's $13billion in revenues comes from hardware.
The majority of their hardware comes from Sparc.
Why would you buy a company for billions of dollars and ditch it's most popular product?
Dual Opteron < $600
Hey! Did that guy just use "synergies" in a non-ironic fashion? Get him!
were you expecting to see a sig here? perhaps you'd rather see the inside of an ambulance!
Source IDC 2008:
market share:
"Unix, mid-to-high-end servers ($17.2 billion in 2008)
IBM 37.2 pct
Sun 28.1 pct
HP 26.5 pct
"
Don't give a flying fig about Suns servers?
IIRC Solaris still has the highest market share among proprietary Unixes. And AIX ist only third after HP-UX.
And if you think about Oracle as a database company you've kind of missed the last 8 years or so. They've bought a lot of stuff and are number two behind SAP.
"IBM provides Java and Java products. "
Well I guess Sun does that too.
Regarding virtualization: XVM Server
Should be enough to keep the troll busy ;-)
Bye egghat
-- "As a human being I claim the right to be widely inconsistent", John Peel
Oracle President Safra Catz was also heard to remark...
"all your database are belong to us"
Oracle suddenly has a great operating system, great server hardware, a popular database, and the de facto language of server-side business logic (other than COBOL.)
And IBM has built so much of its business on Java.
IBM should have just opened the piggy bank and it would have saved itself the world of hurt it now has in store.
PostgreSQL has seen major improvements. Look at the Coverity open source scans. Coverity identified 90 (potential) coding errors. Each was investigated. There were 57 code fixes, on for every code error that was confirmed by a coder. Not exactly a rotting community. Look at the previously reported scaling on FreeBSD 7.0. This is nearly perfect scaling. That doesn't happen by itself.
Think global, act loco
http://www.oracle.com/technologies/linux/linux-tech-leadership-contributions.html
"You can catch flies till the cows come home, but wasps are a totally different kettle of fish."
Why would you buy a company for billions of dollars and ditch it's most popular product?
Simple. You bought it for the profitable parts and/or the parts you think you can make profitable. Hardware margins are so low that even giants like IBM have been transitioning away from them, leaving it all to Intel, AMD, and others who are completely focused on that market. Oracle may abandon it, may try spinning it off and selling that unit, or may try making a go of it. Given Sun's decreased attention on SPARC prior to this, I'd have to guess that Oracle will continue the trend and try to get rid of it. Meanwhile, Oracle will have to concentrate on the real value adds for them, which is probably a) customer lists and b) software, probably in that order.
I love BDB. Oracle bought them and now they've hampered open source involvement. You can't see their source repositories. All you can do is get a zip of their latest release. I don't think any non-Oracle employee contributes to BDB. Read-only open source is barely open-source. I don't want the same to happen to Java, Glassfish, and Netbeans.
I remember seeing Oracle rebranding high-end server hardware recently, and tweaking Oracle to run ultra-fast on that particular configuration. Now they have a hardware platform (Sun's x86 and Sparc lines), a software infrastructure (Java) and a marketing lock (Sun hardware and Oracle database purchases seem to go hand in hand, even now.)
So it's a good move for them. We'll see how well it works out for everyone else. Oracle hasn't been known for developing products that don't require an army of Oracle consultants to get working. If they use the Sun acquisition to build their "database in a box" product, then customers face lock-in on the hardware and software fronts, just like back in the mainframe/midrange days.
It might be the cynic in me talking, but Oracle has been one of the major causes of large-scale IT failures you read about in the industry press. It's helped along by bad requirements and idiotic lowest-bidder consulting firms, but Oracle is sometimes forced to pay large settlements for running a project over budget. That's just a natural side effect of designing products that are so complex that you have no choice but to buy support. Also, you have to wonder what Oracle's going to do with MySQL now...
Oracle consumed J.D. Edwards, PeopleSoft and BEA. Let's see how well they digest this one!
hmmm...the "cultures" are so different at Oracle and Sun...will Oracle let stand Sun's culture that is quite unique, I would say...I doubt it...
A long, long time ago...
I can still remember
How queries could run for a while.
Adding more memory would help
But performance would still make us yelp,
Still the price was cheap and always made us smile.
But April's news made us shiver
Oracle would our DB deliver
DBAs on the doorstep;
Large checks we'll have to schlep.
I know that our CEO cried,
When the new price he spied.
Our low cost hope now are fried.
The day MySQL died.
(continue on your own)
Comment forecast: Bits of genius surrounded by a sea of mediocrity.
This was an intellectual property firesale. IBM = idiots. Congratulations to anyone who realized Sun stock was ridiculously undervalued; you deserve the profit you made by buying low.
I think Oracle's underestimated the cost of integration between companies with such dissimilar cultures. Not to mention, by jumping into the hardware business, they've given all of the other hardware makers a very strong reason to steer their customers away from Oracle.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
Nonesense.
Their SPARC servers are their highest margin servers and account for most of their revenue. UltraSPARC server sales declined but the CoolThreads servers and x86 servers increased, but nowhere near the level of their traditional SPARC based revenues.
Buying Sun, and killing SPARC would be a stupid idea. They could have bought other companies cheaper.
Dual Opteron < $600
I think this is exactly right. Now every time IT installs a MySQL database, the CEO will see 'Oracle'. They will have warm fuzzy feelings because they know Oracle is serious software(TM). They will also see that Oracle doesn't have to be expensive. They will then have the same sort of up sell opportunity that Microsoft had with Access to SQL Server, except of course that MySQL is not as f***ed up as Access. For MS, the upsell occurred as soon as you moved from personal to departmental. With Oracle, the line of division will be (roughly) division and enterprise.
Think global, act loco
Oracle already has Linux (a re-branded RHEL) for it's *NIX platform.
But perhaps they'd prefer something unbreakable. Like Solaris.
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
Because IBM kept low-balling the buyout price. Its was under $9.50 before IBM bailed out.
There is no America. There is no democracy. There is only IBM and AT&T and DuPont, Dow, General Electric, and Exxon
I'm sorry ( rant mode )
IBM is possibly one of the most over blown Enterprise companies on the planet. IBM buying SUN would have been a huge dis-service to IT and the evolution of the industry.
Note that IBM has become the new CA. Buy and pillage the corp resources. If it looks shiny and possibly something that will gen new money then brand it Tivoli. If we can milk the old name till it dies a death of agony brought on by starvation and dehydration we will. The best known near dead corpse we know as Rational.
I'm sorry but IBM is possibly a worse choice for buying SUN than Microsoft.
Don't get me wrong Oracle is no poster child of virtue out there. Oracle is definitely going to milk this all ribs and bones cow that is SUN microsystems. But at least the landscape at the end of the pillage will most likely still have a free Java and a free RDBMS. There is zero chance IBM would have left a potential cash flow alone like those two.
OK Here's one to put in the Calender. Google buys Microsoft. Feb 2012. I put one Aussie penny on it. :) :)
But thank the corp gods that IBM did not buy Microsoft, Err I mean Sun. If you have dealt with IBM GSA you are then invited to tell me I'm wrong on this :)
What I'm surprised about is that no one (especially the Slashdot editor) has yet linked the story from a few days ago predicting this.
I have two questions for you:
1) What happens to ZFS now? Is it more or less likely now to see it come to Linux (the kernel) one day?
2) In general, is this a better outcome than IBM buying Sun?
This has been almost 10 years overdue, when Scott McNealy started behaving like Ken Olsen, c. 1978-80, SUN was doomed, and makes the "No Computer Company makes two full generations" law up there with Moore's and Bell's laws.
... as SUN.
The get to have a death wish, and wont adapt to market conditions:
Use VMS/Bliss not Unix and C, Unix is Snake Oil
s/VMS/Solaris/g
It is soo sad, and in some ways the better the product they the worse the delusional thinking is. If HP/Intel had got the Itanium right this would have been over 10 years ago.
The other sad thing is how the aging Solaris sysadmins still insist that Lintel is less reliable than SPARC+Solaris. As one who worked extensively with the Solaris core kernel let me tell you the Linux code is far better than its Solaris counterpart. As some Intel hardware vendors, HP, Dell & IBM were forced to 86_64 when the Itanic sunk, one got similar high quality engineering for servers that SUN did, hot-swap, ECC ram carefully designed boards with diagnostic capability, good ground plane, equalised clock distribution, quality thermal design
It is so easy to get blind sided by prejudice, I remember the first DEC ethernet controller, for the Unibus, with AMD2900 bit-slice and loadable u-code, wonderfull engineering, but it drew 7A of 5V, and you often needed to install an additional backplane and PSU to cope with the heat and +5V drain. Madness!
Since the back office is not mobile and caters to groupware, the cloud service could be called ImmobileUs, but I think marketing may object.
Think global, act loco
Education has been switching to Linux/Windows/Macs away from Solaris and SPARC for about a decade now, at least definitely on the desktops, both research and instructional. Many IT servers and most high performance computing servers had been switching to x86 based solutions (usually Linux) too. When Sun introduced the dreadful Ultra 5/Ultra 10 family it was a clear writing on the wall, that the party is over, that the SPARC workstations won't last for long in the places they they to be common place in the 90s. There are still a few system administrators in the academia who insist on inflicting the Sun Rays upon their users but they are the minority. Yes Sun flip-flopped on Solaris x86 and waited too long with the introduction of x86 hardware. At the same time all the academic software vendors (Matlab, Mathematica, etc), dropped the support of Solaris on x86 because even before Sun's flip-flop this platform saw pretty weak sales of their products. When Sun changed course, it was too late. Most academic/research/technical users started the process of switching to Linux or other non-sun solutions.
Likewise, defense contractors, such as the aerospace companies, had been moving their engineering desktops from Sun and other proprietary workstation vendors to Linux for a long time now. I suspect the situation is similar in the oil industry.
If you run with this one, somebody is going to loose an eye.
Think global, act loco
I'm listening to the conference call now.
One of the first thing Larry Ellison said was two of the main reasons they were buying sun were for Solaris and Java.
Solaris/Sparc is the largest base where Oracle is deployed. Linux is number 2. He also said "Solaris is the best unix techonology available in the market."
Solaris isn't going anywhere.
Dual Opteron < $600
Sun's multicore sparc work is basically custom designed to run giant database servers, and giant web servers with giant database back ends. Doing so at lower power draw than the competition has the potential to be a market winner. That alone will not be sufficient, however.
If you mod me down, I shall become more powerful than you could possibly imagine.
Mostly I agree with you. However...
Workstations are necessary as a platform for developers/admins. Even as a loss-leader, they support the health of server sales. Be that as it may, Sun workstations are all PCs now anyways. No more SPARC on the desktop.
The super high-end servers are a big profit area, even at a low volume. The same computer power sells for a MUCH higher margin, even after the higher costs are factored in. Also, they (again!) support the low-mid range sales. If you have a monster Sun system in your data centre, the most obvious gear to support it is more Sun gear.
Solaris is open. If you don't like the CDDL license, too bad for you. The fact that it doesn't meet the requirements of an aging anti-commerce hippie doesn't make it less open. Hearing "change the license" is automatically a flag that some Linux fanboy is determined to paint the world in HIS colour, and EVERYONE ELSE must comply.
"People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
While this is obviously a problem for FOSS, as somebody who works for startup companies, I am also very concerned about potential changes to the pricing structure. Startup companies and SMB's use MySQL instead of Oracle because they can't afford to pay for a database on top of all of their other costs. Cheap/free database software is part of what makes entrepreneurship possible for so many people.
If Oracle slowly kills MySQL through neglect, it could have ramifications for the broader economy, unless another database software (e.g. PostgreSQL) can fill the void.
Fortunately, it's all based on the SQL standard, but there are still differences between RDBMS's that developers will need to learn to switch.
And yes, why is there no antitrust attention when Oracle tries to buy the owner of MySQL?
He also said "Solaris is the best unix techonology available in the market."
Solaris isn't going anywhere.
So why is there still no Oracle 11g for Solaris/x86, when its already been released for most of the other major platforms, including Windows, Linux, AIX, HP-UX. It has been released for Solaris/Sparc, but as of yet, no 11g for Solaris/x86.
If I can be modded down for being a troll, can I be modded up for being an orc, or a balrog?
IBM would have killed all of Sun's hardware (including their backup and storage gear, which is often forgotten and yet it's very large and important). No more SPARC and their cool-running, many-core (and open-source) Niagara platform.
IBM would have killed Solaris (they have their own Unix, AIX). Luckily, Solaris is open-source, so perhaps someone would have picked up the torch.
IBM would have killed Star/OpenOffice (they have their own office suite, no matter how crappy). Again, OpenOffice is opensource, so...
Oracle likes all of the above, to a varying but still high, degree.
Oracle is also a ruthless, almost barbaric company when considering their sales practices, but I prefer them to IBM any day. Oracle is like Attila's Huns - they pillaged for the money and the women, but they never tried to bullshit you with "we come in the name of the Lord" - that is IBM's style, with their fake and cynical pretense of contributing to open source and standards.
"The agriculture ministry is not in charge of Gundam" - Japanese ministry official.
"Occultation" in the dictionary. It's an astronomical term and refers to what happens when one heavenly body is concealed because another heavenly body passes in front of it.....
LedgerSMB: Open source Accounting/ERP