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
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
Sun = Poorly run company with great products
Oracle = Masterfully run company with shitty products
I wonder how that DNA is going to come together...
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.
Why? From what I've seen, the recent UltraSPARCs (T2, and possibly the Rock too) have the best performance-per-watt when running parallel workloads with few floating point ops and lots of I/O. Oracle workloads are parallel, with few floating point ops and lots of I/O. Shipping Oracle appliances on T2 chips means that they aren't having to pay another company a share of their profits for their CPU, and continuing to sell them to other people helps them offset more of the R&D costs.
Oh, and Sun aren't the only company making SPARC chips. Some of the ones Sun has been selling for the past few years have been rebranded Fujitsu SPARC64s and there are a few companies selling SPARC32 (v8) systems for the embedded market, although they are less common than ARM and PowerPC.
I am TheRaven on Soylent News
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
They've switch to Solaris already???
(ducks and runs for cover :)
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 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
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!
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
I'm hoping that's a joke and not serious...
Why would that be a joke? For years Oracle/Solaris/SPARC was one of the preferred stacks for deploying a mission critical OLTP system in the enterprise as well as many start-ups.
When Oracle embraced linux and created their linux distro, they called it "unbreakable linux", because they made enhancements to linux to make it more stable. Implying that it was breakable before.
You don't have "Unbreakable Solaris" because that would be like having a banana-flavored banana.
Dual Opteron < $600
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