Welcome!

Recurring Revenue Authors: Zakia Bouachraoui, Elizabeth White, Pat Romanski, Carmen Gonzalez, Yeshim Deniz

Blog Feed Post

Oracle-Sun Combo!


I looked at the news in disbelief this morning - Oracle buying Sun for $7.4 Billion. The actual deal would cost Oracle only $5.6B after taking into account Sun’s cash and debts. In some sense, it’s a “steal”  for Oracle, cheaper than what it paid  for BEA and  PeopleSoft. Remember, Sun was valued at $200B at its peak during the dot-com hay days.

The immediate questions are: Oracle is getting into hardware business? What value does Oracle get from proprietary OS like Solaris? What would Oracle do with MySQL? What about Open Office? How many people will be laid off from the 34000 Sun population?

During my ten years at Oracle, Larry kept repeating “We are not a hardware company and wll never be.” Well, if that conviction persists, then Oracle will dispose off the server and storage business, which are low margin entities anyway and are being commoditized every day. Also, it will pose conflicts with Oracle’s other hardware partners like HP and Dell.

It is true that there are thousands of customers running Oracle on Solaris for years.  Having one vendor supplying both pieces can be appealing to customers for better support and enhancements. IBM is a good example of doing that, so also Microsoft. It seems we are back to “vertical stack from one vendor” days. Oracle has never done any storage hardware business, although database software folks like me feel intimate to the disk hardware, as the software has to work very close. The dividing lines can be interesting (how much the DBMS does vs the Storage manager). Some people call this “bullet-proof vertical” approach - having storage, OS, and DBMS from one vendor.

The gain of the Java business is significant and Oracle mentioned that that will add to the middleware revenue. Time will tell, as development platforms are not usually good revenue generators. MySQL open-source database will be interesting, as it will be additional to Oracle’s own closed-source database business. But Oracle also has an open source database product.

I think the deal is mostly financial. Oracle’s EPS will gain 15 cents. profits will grow by over $1B during the first year. From an ROI standpoint, this deal makes a lot of sense for Oracle and a saviour for Sun which had no bidder after IBM dropped the offer.

It’s a bold bet for Oracle.

0

Read the original blog entry...

More Stories By Jnan Dash

Jnan Dash is Senior Advisor at EZShield Inc., Advisor at ScaleDB and Board Member at Compassites Software Solutions. He has lived in Silicon Valley since 1979. Formerly he was the Chief Strategy Officer (Consulting) at Curl Inc., before which he spent ten years at Oracle Corporation and was the Group Vice President, Systems Architecture and Technology till 2002. He was responsible for setting Oracle's core database and application server product directions and interacted with customers worldwide in translating future needs to product plans. Before that he spent 16 years at IBM. He blogs at http://jnandash.ulitzer.com.

IoT & Smart Cities Stories
The term "digital transformation" (DX) is being used by everyone for just about any company initiative that involves technology, the web, ecommerce, software, or even customer experience. While the term has certainly turned into a buzzword with a lot of hype, the transition to a more connected, digital world is real and comes with real challenges. In his opening keynote, Four Essentials To Become DX Hero Status Now, Jonathan Hoppe, Co-Founder and CTO of Total Uptime Technologies, shared that ...
Every organization is facing their own Digital Transformation as they attempt to stay ahead of the competition, or worse, just keep up. Each new opportunity, whether embracing machine learning, IoT, or a cloud migration, seems to bring new development, deployment, and management models. The results are more diverse and federated computing models than any time in our history.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...