Monday, April 20, 2009

Oracle acquires Sun

Mondays seem to bring a lot of things. I met someone this morning dreading the start of the week as she was off to a meeting. I suggested that it was a great chance to get your week off on the right foot. It was an opportunity. Then I arrive at my desk and open my email and what do I find that Oracle has purchased Sun for $7.4 Billion. This is what makes today a great opportunity.

So today starts a new evolution in the Oracle world. For years Larry Ellison has created a company that provides almost all of the technology stack. They provided applications, middleware and database. To a certain extent they also supported hardware by providing Linux support and the launch of the Oracle/HP Database Machine. This now changes a lot of things. Firstly Oracle now like IBM can control their entire technology stack and provide single-vendor solutions from soup to nuts. How will this change the direction of the Exadata is not known, but I expect that in some form it will continue, it looks like we should expect some changes in this area.

Of course one of the biggest prizes from Oracle’s perspective must be the open source components of the company. Oracle now becomes the Java company, they have always been a market leader in the area and now will own the basic building blocks. Consider Ellison’s statement from this morning conference call announcement where he said `` Java is the foundation of Oracle’s Fusion Middleware and the single most important software we have acquired``. In addition there is MySQL, what will happen here? How will Oracle deal with this database which is a rival of its own?

This acquisition raises some interesting scenarios but at the basic level we are look at what Oracle strategy is for buying companies is are the best. Larry stated it today by saying `` One of the reasons Oracle is so successful is that we buy companies that are number one.``. We have seen it with Peoplesoft, BEA among many other where the company was the leader. It will also be great to see how Larry Ellison and Scott McNealy get along now that they have to work together everyday? These pioneers have always seemed to be allies; now that Scott works for Larry it will be fascinating to see how it works out. These guys have lots of energy and are superior thought-leaders, I expect that this combination could be a very powerful and visionary one, or it could upset the balance of power in the executive ranks. Acquisitions can be a tricky thing.

From an IOUG perspective we look forward to welcoming the Sun technology community. As this acquisition progresses the IOUG will keep everyone in the loop. It will be exciting to see how the to this purchase will change things at Oracle.

I love just never know what can happen.

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