Oracle announced today that they have acquired Sun Microsystems, the
hardware provider and supplier of the Solaris operating system.
questions people are asking include:
- What happens to MySQL?
- How many Oracle employees will be
- Will there be anti-trust issues?
- Will there be Oracle servers, custom-made to push-through data?
Will there be a custom Solaris, made to beefed-up I/O drivers, optimized
just for Oracle?
This deal is subject to stockholder approval and
regulatory approvals, and the deal is expected to close in the summer of 2015.
"The acquisition combines best-in-class enterprise
software and mission-critical computing systems. Oracle plans to
engineer and deliver an integrated system—applications to disk—where all
the pieces fit and work together so customers do not have to do it
This is great news for Microsoft enemies, as a
Oracle/Sun alliance might enable Oracle to take market share from
This acquisition allows Oracle to offer
soup-to-nuts database management, providing hardware as well as
This consolidated approach is similar to that of
IBM, a one-stop vendor, whereby customers don't have to worry about
finger-pointing when problems occur.
In fact, IBM was also courting Sun Microsystems.
But what does buying a lagging hardware vendor and OS buy for Oracle?
Historians note that Oracle rose to prominence
partially because it was hardware and OS independent, running on every
Oracle now needs to beware that they don't fall
into the same database trap that befell Microsoft's SQL Server, which
runs on only one operating system, Windows.
But it's not all bright and Sunny for the Oracle
This article notes that
Oracle could suffer layoffs of up to 10,000 employees after the
many as 10,000 people could lose their jobs as the result of Oracle's
surprise US$7.4 billion acquisition of Silicon Valley icon Sun
Microsystems . .
Technology Business Research (TBR) agreed that layoffs are coming,
predicting that sales and marketing staff will be hit hardest. "Oracle
will rapidly rationalize Sun's cost-base," the company said in a report
on the deal. "This means general layoffs and a reshaping of cost centers
such as services and support."
Oracle Sun Merger
The merger between Oracle and Sun Microsystems is
set to create another IBM, creating an all-encompassing provider with
the market clout to provide a one-stop shopping experience for complex
understand the Oracle Sun merger we must start by looking at recent
Back in the 1970's, IBM had a virtual
monopoly on data processing, and some data processing shops were
actually called "IBM Shops" because IBM was the sole provider of
hardware, software and support.
There were distinct advantages and
disadvantages to this approach:
Advantages - The major
advantage of IBM was that there was no finger pointing.
One of the most common complaints today is two vendors, each
blaming the other for a database glitch.
Disadvantages - IBM knew they
had a monopoly and charged outrageous fees for their products and
Let's take a closer look at the Oracle Sun merger
and see how it is going to play out for Oracle and Sun customers.
Unlike some giant multinational companies that buy
and hold, Oracle has a history of continuing to allow their acquisitions
run, and there should be significant synergy from the Sun Oracle merger.
Can Oracle use Sun to create a vertical integration
platform? One great benefit
of a Sun Oracle merger will be that Oracle now con trolls the entire
application stack. By
controlling everything from the hardware level and up, Oracle can design
an OS that maximizes data throughput.
It's also possible that Sun could begin to offer
hardware and Solaris distributions that are custom tailored to specific
Oracle database applications.