Ballmer, IBM Surprised By Oracle-Sun Deal
Geon Lasli writes "Reporters caught up with Microsoft CEO Steve Ballmer in Moscow to get his take on Oracle's deal to buy Sun Microsystems for US$7.4 billion. Ballmer was at a loss for words: 'I need to think about it. I am very surprised.'
According to a source, IBM hadn't given up on purchasing Sun and was blindsided by Oracle's move. I guess IBM must be regretting playing tough 2 weeks ago. Unknown to outsiders, Sun had probably found the Oracle lifeboat before they decided to pull the plug on the deal."
You see, Ballmer was supposed to get up at 3am and bid $7,400,000,001.00 for Sun on CorporateBay.com. Instead he just threw a chair at his alarm clock and went back to sleep.
Same thing happened to me with a $1.5 thousand Rickenbacker 4003 bass two weeks ago. And now I regret not having that sweet sweet axe in my hands right now just as much as Ballmer regrets not being able to fire whole divisions when their managers don't know the entire lyrics to American Pie by Don McLean. We're both only human, buddy.
My work here is dung.
Ballmer was at a loss for words: 'I need to think about it. I am very surprised.'
They should have called him first to let him know.
The nerve of those guys!
I can really decide if I like the fact that Oracle is going to be bullying Microsoft going forward or hate the fact that Oracle is probably more evil than Microsoft now.
...long live the Larry Borg.
I don't know the specifics, but can't IBM make a counter offer?
I'm as surprised as he. I still can't believe it. It won't be real for me until Taco posts the dupe here on /.
More music, fewer hits
Aww, poor IBM. This is why you don't withdraw bids, you ask for counter-offers. Otherwise, you get blindsided by someone willing to do some give and take. This is probably the best outcome though. Microsoft didn't need another addition to their roster of stuff they've co-opted, and IBM should be doing more development instead of acquisitions.
Canada: The US's more awesome sibling.
That Ballmer had no prepared spin is amazing.
...developers, developers, developers, developers.....ahhhhhhh!!!!!!!!!!!!!!!!!!
There was an article published online several months ago explaining why Oracle and Sun were a good fit. All of Oracle's application server architecture is built around Java. J2EE rules the Oracle roost. Oracle will pull the plug on selling servers, they wanted Java and Solaris. Solaris gives them SIGNIFICANT leverage over Redhat when working deals for large installs of Oracle. They can bundle a complete solution, even down to the hardware and lock EVERYONE else out of big deals.
Lots of analysts saw this as a possible deal, and McNealy was extremely arrogant in walking away from IBM so you had to figure something was up.
Sounds like the brass at Microsoft is suffering brain drain of its own. I bet Schmidt over at Google already knew exactly what was going to happen.
Old and slow Ballmer.... old and slow...
The Emperor: You have paid the price for your lack of vision.
http://www.imdb.com/title/tt0086190/quotes
how long until
It will probably be just like every other merger of companies that should fit well together... it won't.
I would not doubt that IBM left the table after realizing that it was either not worth the money because of culture differences or lack of something to go forward with. IBM didn't need Sun... and I really can't think of why Oracle really needs Sun except to keep IBM from buying it. Actually that is the only logic I can see, prevent someone else from buying it.
* Winners compare their achievements to their goals, losers compare theirs to that of others.
Will my understanding of OpenOffice Base become passe before I finish coding the perfect softball coaching database app?
Invenio via vel creo
by me jumping out and going 'boo.' I think most people were surprised by this. After looking back at the Slashdot article, I could safely say we were surprised as well. But, even though 'rich nerd surprised by something surprising,' isn't much of a story, 'Ballmer surprised and didn't make use of a chair to express his emotional state' is quite newsworthy.
We are the Borg...
Does this give Oracle the ability to offer total package "solutions" to their customers? Do they no longer need to go into a meeting with a potential or existing customer with a preferred hardware vendor at their side to make a co-deal? IMO this gives a lot of power to Oracle and sets up against each other two massive players in the development market.
I'm surprised that Microsoft didn't bid on Sun. I would speculate that they would want Sun for the MySql and Java markets. Had they bid and won they would control a vast proportion of the development market, from Database through to front-end, and over the next release or two of Visual Studio could unify Java and C#. As for the hardware, they could have spun it off to an interested party at an attractive price. IMO since Bill Gates left there's been a vision vacuum and the company is scrambling to find it's path through brute force instead of innovation and this is why they didn't entertain an offer.
I want my own Slashdot article. I was surprised too. Shall we start enumerating all the people who were surprised? This is a non-story. It's like interviewing the neighbors after there was a murder in the house down the street...it doesn't really matter if all the neighbors thought he was a quiet guy who kept to himself.
I know I'll get modded as a troll or offtopic, but seriously... let's just stick to reporting the story and not reporting what people thought of the story as another story.
anyone who doesn't know all the lyrics to American Pie deserves to be shot.
Shot...with a cannon...
...That fires chairs.
Boot Windows, Linux, and ESX over the network for free.
Yeah i understand Balmer and Big Blue concernes cause this could mean that Oracle will be definetly a big player now in someother areas that they don't a big role and could become bigger than them specially in the application servers area and enterprise solutions
I hope that the news about the losses of jobs in Sun will not be confirmed and that Oracle get the transition right.
On the other hand, big blue are knocking with their heads in the wall because if they didn't have given up on Sun's buyout they probably will have a great share in the server's market and the application servers, another thing is that they will have to review their strategy towards JAVA cause now it's like they are fuelling Oracle more and more.
Let's wait and see the next months will be interesting but as a JAVA developer i hope that Oracle get it right in the end.
...said that it was all about Oracle getting their hands on MySQL to keep IBM from doing so.
I wonder if they're going to turn around and start trying to unload the parts of Sun that they don't want. I look forward to seeing what Robert X. has to say about it.
I see even classic Slashdot is now pretty much unusable on dial up anymore.
They didn't bid because Microsoft and Sun would be in antitrust hell forever.
They're the "number 2 software company," but they didn't have anything like the JDK or a real OS to call their own. Now they have Java, Solaris and MySQL, plus they have access to all of Sun's customers.
Many of my customers would have loved to see this go through because then they could buy an entire package from a single company, and it'd probably be cheaper. Systems integration costs a lot of money, and if Oracle can streamline this down to the point where a lot less labor is needed to deliver and configure an enterprise setup, then they'll succeed handsomely.
I've also seen a lot of people bring up MySQL as an issue, but I bet Oracle actually wanted MySQL. Oracle's DB and MySQL don't compete in most areas, and MySQL can be an excellent rear guard product used to keep SQL Server and PostgreSQL at bay. Oracle has a huge services arm, so it's only natural that they will be able to find a way to fit MySQL into many configurations where Oracle DB would not be as good of a fit.
I guess IBM must be regretting
I don't think so, since they indicated that after deeper examination and further consideration, they weren't interested in Sun at any price.
Advice: on VPS providers
Microsoft managed to reach its position through bullying and using it's position in one market to force its way into others (eg Office and DOS). Now what we have here is another quite ruthless company which just put together a platform which can out-bully the bully, using it's strong position in one market to now force its way into others. I can easily imagine the conversation, "So, Mr mega-bank, I know you enjoy our database software, have you ever considered the benefit of our servers as well?"
Karma Whoring for Fun and Profit.
"They did what? ... Gosh, I don't know whether to throw a chair, or dance like a monkey!"
You see? You see? Your stupid minds! Stupid! Stupid!
IBM saved themselves another Rolm disaster. If they'd bought Sun, they'd have to write down 80% of it within five years.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
Okay, I'll make the argument to the contrary: that IBM currently has every reason to be giving their Evil Laugh a big workout right now.
The NY Times this morning has an article saying that basically this is all about Oracle wanting to get into the business of designing, selling, and maintaining integrated systems for businesses that don't want to have to deal with a zillion vendors and bake their own setups. This is essentially what IBM is already in the business of doing. IBM already has a thriving business model where they set up their customers with software and hardware, and a lot of the software they use is open-source.
By buying Sun, Oracle gets a bunch of software. But OpenSolaris, MySQL, Java, and OpenOffice were all already open-source. Well, nothing was stopping them from selling customers a setup that used MySQL, Java, and OpenOffice, even before they bought Sun. That's what IBM does already. You could argue that Oracle gets more control now over these things. Well, yeah, except that because they're open source, they can always be forked, and they'll always be in competition with other open-source projects. Suppose that Oracle, for example, lets MySQL languish for fear of making it compete too effectively with Oracle Database. Well, the OSS community could then fork MySQL, or simply switch to alternatives like Drizzle (low end) or Postgres (high end).
By buying Sun, Oracle also gets a hardware operation. But Oracle has no experience in the hardware business.
There's also the argument that buying your competitors is an easier way to grab market share than out-competing them or out-marketing them. That was a sane argument for buying PeopleSoft. But OpenSolaris, Java, and OpenOffice, and Sun's hardware weren't products that were competing with Oracle's products, and MySQL wasn't really competing in the same arena as Oracle Database either.
Find free books.
Sun was in serious danger of repeating a Microsoft-Yahoo dance, but the Oracle deal makes me think their board actually thinks about these deals unlike Yahoo...
IMHO Oracle's track record on incorporating businesses w/o mucking things up is lackluster at best.
JRockit, the old BEA product that was (is?) the best server-side JVM is difficult if not impossible to download individually now that Oracle owns BEA. Are we going to have the same issues trying to download the sun JVMs? Is the newly open-sourced JVM going to become closed source again?
How about the impact to the various Java committees, etc? Will hostility towards Oracle negatively impact them? Oracle obviously has it's own goals for Java and J2EE (to make things easier for them), but how will these goals conflict with the goals of the other community members?
I think that while it might have been a good purchase for Oracle that it will probably be a negative move as seen by the Java community...
"all reports I've read in the press indicate that Oracle has been handling the mergers very well."
*cough*peoplesoft fiasco*cough*
I assume the Sun shareholders still have to vote on the offer. IBM can go away,sharpen their pencils to see if they can make money with a $9.75/share hostile offer. I wouldn't call it over yet.
Months ago? Lots of analysts? Hmmm. I think maybe it's easier to "foresee" this type of stuff in hindsight.
Not to toot my own horn, but I predicted Oracle would buy Sun before the deal was announced -- but I didn't do it months ago. I didn't hear anyone else talking about it months ago, either. And when I made the prediction, the consensus here on Slashdot seemed to be that it was a terrible idea. So if you can point to some references from months ago I'd love to see them. I don't think anybody was really even thinking much about Oracle/Sun before the talks with IBM made the news -- I know I wasn't -- especially considering that Sun had consistently maintained that it was doing fine and didn't need any help from anybody.
So it doesn't completely surprise me that Ballmer didn't see this coming -- though maybe he's not as shocked as he's pretending to be. By acting surprised, he makes it sound like he wouldn't have made this deal himself, which makes it sound like he might not think the deal is a good idea, which is a totally self-serving position for Microsoft to take.
It does seem a little strange that IBM is acting surprised, though. By all accounts they had exclusive rights to negotiate with Sun for a set period of time, and they let that period elapse. What did they expect? Maybe they didn't believe Sun would be able to leave the table and arrive at a firm deal with a different suitor so quickly, but that seems a little foolish on their part, if it's true.
Breakfast served all day!
They control the Oracle experience from end to end and lock everybody else (read: Microsoft) out. Ballmer likely came to that conclusion and said "oh shit." That's why he's at a loss for words.
This is my opinion. To make sure you don't steal it, it's covered by the DMCA.
The reason Ballmer was speechless is he forgot Oracle was still around or was suprised Oracle had that kind of money. Take your pick...
-=[ Who Is John Galt? ]=-
But apparently Ballmer, who is rarely at a loss for words, didn't exactly have a sound byte at the ready.
This journalist is a true newbie in this field. Haven't he heard what happened when Ballmer loss for words last time? He expressed his gentle feeling with body language.
It's not a sound byte he was not ready, it's a chair.
And this would be a bad thing, how? Seems to me that hell would be a great place for Microsoft. Does anyone have any Elder Signs available? Preferably on a chair.
It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
This information for chronic trollers and all interested parties at Slashdot. So before you talk about what you do not know, here's a link:
This statement:
Perhaps you didn't mean to compare DB2 to MySQL, but saying MySQL would serve the same place in the product lineup is deeply silly, at best.
On a serious note, I hate last-minute eBay bidders. Since all auctions on eBay are proxy auctions, you're not really bidding when you enter a number, you're setting a maximum that your proxy can bid on your behalf. The people you're bidding against don't know what your maximum bid is, so it doesn't matter if you enter your maximum as soon as you decide on it or at the last minute.
Except in the rare case where somebody else enters the same maximum as you do. In which case the person who entered the maximum first wins! So why wait for the last minute? Unless you're more concerned about winning than about getting a good deal, which I guess describes a lot of eBay bidders.
Of course, this behavior is profitable for eBay, since overbidding inflates their commissions, so they make no attempt to educate folks, and even send you "Don't let it get away!" emails if you're outbid. But it gets really old. You seem to be winning, and then somebody willing to pay way too much jumps in at the last minute. Too frustrating and time consuming. I try to stick to Buy It Now purchases these days.
Oracle RDBMS and Sun has long been a solid platform combo. Typical of Microsoft's "Windows" on the world viewpoint. While they were building mice, gaming platforms and the paper clip dude, Oracle and Sun were working together to create a bullet proof enterprise Java enabled database platform. I was not surprised in the least at Oracle snapping up Sun.
640K is enough for anyone.
640K = 640*1024 = 655360.
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
Please tell me, that English is not your first language.
English is my first language (gee maybe second but it's very close I learned two at the same time). Slashdot isn't my first priority and I'm usually doing one or more other things while I'm typing. It's common for me to stop in the middle of a sentence then come back in mid thought which screws things up.
I type pretty fast but I still think faster than I type and that gets in the way too.
If I took the time to proofread, I'd spot the errors. But commenting on Slashdot, just isn't that important to me and I couldn't care less about the grammatical errors as long as the underlying message gets across.
Dual Opteron < $600
If I took the time to proofread, I'd spot the errors. But commenting on Slashdot, just isn't that important to me and I couldn't care less about the grammatical errors as long as the underlying message gets across.
Well said, sir. And it did.
Seems obvious that Sun was in talks with Oracle at least as early as February (when Monty Widenius left). I'm sure that Oracle and Widenius are mutually exclusive and may be the real reason that he left (or was asked to leave) Sun.
I think Oracle has a lot of things to gain from this deal.. Apart from widely spoken solaris/mySQL/glassfish portfolio, sun has a lot of exciting things which with appropriate marketing/management can blossom into excellent products..
Sun's foray into RIA with JavaFX,
web 2.0 space with products like zembly, glassfish support for rails...
Cloud computing infrastructure of network.com
besides now becoming a fore runner now in the JAVA space.
Sure there could be a few overlaps here and there.. which can be settled out in due course of time..
But overall.. Its a friggin' steal
If these leaders of the corporate world couldn't see this 3,000 miles and 6 years away, then that shows that you too can run a Fortune 500 company. What will surprise me is if Oracle kills MySQL. I suspect that MySQL would be the perfect way to attack SQL Server from the bottom and Use Oracle to attack from the top. Just squeeze MS from the top and bottom in the database space.
Think Deeply.
Everybody is discussing on MySQL, Solaris and Java. But are still some other opportunities for Oracle: JavaME and OpenOffice.
If Oracle have balls they could continue the push for JavaME (Java is used in almost all mobile phones and is the only solution for write once run everywhere). A kind of Java is used also by Google Android platform.
They can make also an alternative for exchange server and with a decent office suit Microsoft is history. This is a real stack offer: hardware for servers, soft for middleware and soft for frontend (PC's, notebooks and mobile phones) all "seamless" integrated.
To be honest I don't see Oracle coming so close to the user from their pedestal of "High level enterprise provider" but it can be an idea.
Well, why SHOULD have Microsoft placed a bid for Sun? Their software stack doesn't run on SPARC, they are surely not interested in maintaining open source Unix and selling big ass servers is not their specialty either. A buyout would also have consumed at least a third of their remaining warchest, not to speak of aftermath losses. And that in the middle of a recession and massive layoffs. Even Ballmer is not that stupid.
Want to hear the voice of GOD? cat
Why should have Ballmer and Microsoft seen this coming?
Even back in the day, when Bill was running Microsoft, they did not see the Internet coming.
I mean come one, Ballmer is not an Oracle!
I only look human.
My mother is a halfling and my dad is an ogre, so that makes me an Ogreling
This is interesting.
When it comes to Databases
MS: Software stack, .NET
IBM: Software Stack+Hardware (own system, linux, windows), lots of java
Oracle: Software Stack+Hardware (own system, linux, windows), lots of Java
Somehow when it comes to selling complete solutions MS is missing something..... Moreover, if IBM and Oracle agree on pushing Java, then .NET will be dead soon.
Oracle sure wanted the software, no doubt. But what about the hardware? Will they keep it, or sell it to someone like Fujitsu? That's bit of news is the next shoe to drop...
The writing is on the wall, with Intel's volume it is going to be (already is) very difficult to compete in the processor market. I would be very surprised if Sun cpu's lasted very long. Maybe Oracle will keep building systems, but as Intel continues to improve, I'm guessing it will be with Intel cpu's.
There is no way he didn't know and walk through the pro's and con's of this acquisition with his people well in advance. All of those guys know far more than anything reported in the media, and because they are sitting in the same position they can pretty quickly do the analysis to figure out who might or might not be in a position to acquire a company like Sun.
Totally agreed, it's my second language and I can't believe native English speakers (for whom it's usually the only one they know) can't even manage to avoid those simplistic errors ! Being English is a such a simple language that should tell a lot on the education on these people !
I think that it would be impossible to MS to buy Sun. do you really think that the market would tolerate .NET and Java under the umbrella of MS?
Allow me to explain.
The bulk of Sun's revenue comes from SPARC-based servers. Sun simply cannot afford to develop further SPARC processors -- including the so-called chip-multiprocessor ones like Niagara. Why? Sun lost the workstation market on the desktop to Intel. The last SPARC-based workstation used the UltraSPARC III, and sales of this workstation were discontinued after 2007. Look at Sun's web site. The sales of SPARC-based workstations are finished.
Without the economies of scale from selling hundreds of thousands of SPARC chips in hundreds of thousands of workstations, Sun cannot afford to develop the SPARC processor any more.
Without SPARC processors, most Sun's servers would disappear, and so would the bulk of its revenue. Sun could continue selling Fujitsu-designed SPARC systems, but Sun's profit margins on those are small.
Basically, Oracle will terminate the hardware business at Sun. In other words, Oracle paid $7.4 billion only for the software business of Sun. $7.4 billion is too much for such a miniscule part of Sun. Software brings little revenue (or profits) to Sun.
Great! So then you obviously have no qualms with us thinking you're a dumbass. I mean you said it right there - it's not important to you. Therefore it's clear you don't care enough what sort of impression you leave so we are free to make any impression we want. Therefore I declear you're a dumbass!
Talk about a CEO that is unplugged. You would think that Steve Ballmer had an army of minions at the ready to update the CEO at a moments notice when a GLOBAL market game change is made. I guess Microsoft is a bit slow on getting that information to the powers at be _or_ so obese that the buyout has no affect on them.
I think someone either 1) needs to wake up earlier in the day and get the market pulse before heading out the door to clients, 2) be introduced to modern day mobile gadgetry, or 3) BS his way through an answer as to not look behind the times.
You got the vocabulary, so I guess it could be first language. Which would really be a shame. :)
Not my native tongue either. He made interesting points, nothing to be ashamed.
You have shown your incapacity to focus on the essential: the content, rather than the spelling. I feel like it is more serious than few typos personally.
You do errors?
Hey, if you are going to criticize someone for their spelling at least make sure your post is perfect. It's not "simplistic" but "simple". There should be no space before an exclamation mark. Basic punctuation! And what's with the "Being English is such a simple language..."? In English you don't just stick words together in a random order. Do you know what grammar is? Seems like it's not as easy as you think.
Larry already tried to make database hardware:
http://en.wikipedia.org/wiki/NCUBE
It turns out that it's not as easy as declaring a project or buying a company. Most modern storage systems truly suck, at the drive firmware level, where there's nothing you can do about it without changing how disks are manufactured.
I don't see him being successful trying to turn Sun into "nCubed The Sequel", and I really doubt he'd try that.
-- Terry
I think it would be better to be a dumbass than to be a queef stain anal about grammar.
Oracle already has an OS, they have been using Redhat Linux.
Falcon
Should there be a Law?
Oracle will definately push Oracle DB, it's their main earner. They will support Linux but will likely push Solaris. If they were going to push Linux they would have bought RedHat, because Linux to Oracle means RedHat.
Why would Oracle buy, they already sell systems with Redhat. A few years ago there was speculation Oracle would buy Redhat because they started using it, or kill Redhat. Here's one such article, "Will Oracle Linux Kill Red Hat?"
Falcon
Should there be a Law?
In Soviet Russia, the chair gets you!
Have gnu, will travel.
The only way to get an instant DB monopoly by merger would be if Oracle, IBM, and Microsoft underwent a three-way merger. Which is somewhat unlikely.
Imagine this, Larry Ellison throwing Ballmer off his sailboat, during the Sailing World Cup.
Falcon
Should there be a Law?
When a customer says "we're going with IBM because they can deliver a whole solution" Oracle can now say "So can we!".
What would bother me if I were at Oracle would be those hardware businesses that I currently supply with a DB developing the attitude that Oracle was going to compeat with them. With the buyout Oracle would have a compleat system from hardware to OS to applications.
Falcon
Should there be a Law?
I don't understand: how is it possible to acquire a company with technologies that are this monetize-able: http://tinyurl.com/dh8mcr ?
More evil now? I don't think they have ever not been more evil. They were just lower on the radar for most people.
---- Booth was a patriot ----
True, but they still need to keep track of what is going on .
---- Booth was a patriot ----
Several of your listed "errors" are not actually errors, but stylistic differences used in different countries.
I'm assuming you learnt the American version of English?
I'll leave it to you to figure out just which are incorrect and which are not.
By the way, you've made a number of mistakes in your post as well ('you' instead of 'you have' for example), but I got the gist of your message and that's all that counts, right?
(English is my first language).
Ballmer was at a loss for words.
That's a surprise. No "I'm going to bleeping kill Oracle" or "Larry Ellison is a bleeping bleep"? He just quietly threw his chair and went back to work.
Funny may not give karma, but +5 Informative never made anyone snort coffee out their nose.
Why do you, and the gp, keep, putting in, so many unnecessary commas? Do you type a comma when you get back to /.?
Not a sentence!
That is an excellent point. In fact, rather than make large acquisitions of the type like Yahoo and Sun, Microsoft would be better served by consolidating their divisions to concentrate their research efforts and eliminate unprofitable also-rans like the Zune. Their continued investment in Windows 7 probably is a wise long term move, provided that they can price it competitively. The $300 price point is just too expensive for an non-server OS these days. Microsoft really needs to hit the $100 or less price point with Windows 7 if they want to remain competitive going forward. They should also do more to encourage open source efforts like nAnt, nUnit, nDoc, and nHibernate on their .NET platform and address the niggling issues with Visual Studio (it is already a good product, but it could really be great if they included the sort of features that one now has to buy ReSharper to get). This will be especially important if a combined Oracle + Sun step up the competition with the Java platform (personally I would like to see BOTH succeed going forward because competition has always delivered better platforms and products in computing).
Well, why SHOULD have Microsoft placed a bid for Sun?
To kill Java or turn it into a dotNET zombie. Would have been interesting.
Everyone here likes to pay out Ballmer, but in all seriousness, what competent executive doesn't anticipate his competitors?