Posted on 04/21/2009 5:31:10 AM PDT by SeekAndFind
Over the past 13 years, Sun Microsystems' Java language has become one of the computer industry's best known brands—and underappreciated assets.
The tension wasn't lost on Sun's new owner, Oracle, which on Apr. 20 said it will purchase Silicon Valley pioneer Sun for $7.4 billion in cash. If Oracle has its way, Java will emerge not only as a strong revenue source but also a key component of plans to keep customers loyal for years to come.
During a conference call with analysts Apr. 20, Oracle CEO Larry Ellison called Java "the single most important software asset we have ever acquired." It's a bold statement from a chief executive who spent in excess of $40 billion to buy more than 50 software companies since 2005.
Powering PCs and Cell Phones
Ellison is willing to make that call because the Java programming language, widely used to write much of world's business software, is a key ingredient in Oracle's recipe for ensuring the many products it has already acquired work smoothly together. Java also runs on 800 million PCs and 2.1 billion mobile phones. PC makers and cell-phone vendors, including Nokia , pay royalties to license the software. "When you look at those numbers, they're enormous," Citigroup analyst Brent Thill says of Java's potential. "Oracle looks at this and says, 'This could be a $1 billion business.'" Yet Java supplied just $220 million of Sun's $13.9 billion in 2008 revenue. "Java is the most valuable brand in software that has no value," says Joshua Greenbaum, principal of industry analysis firm Enterprise Applications Consulting.
Oracle hopes to wring value from the deal in part by cutting costs to make Sun's hardware and software businesses profitable. Oracle also wants to sell Sun's Solaris operating system and servers in tandem with its market-leading database software.
(Excerpt) Read more at businessweek.com ...
Oracle + Solaris + Java is a pretty good combination even before this deal. I imagine what Oracle is thinking is to use and modify Sun’s IP on Solaris and Java to make the integration of all three elements work that much better with each other.
As the article notes, the size of the installed Java base makes just Oracle + Java make a lot of sense as well. Solaris and Suns’ hardware unit are simply bonuses for Oracle to acquire.
Ping.
So, Oracle+Sun+Java makes more business sense than IBM+Sun+Java ?
Given my experience with IBM’s solutions and pricing policies, I’d say yes. I’d choose Solaris over IBM pretty much any day of the week simply because it scales better and more cheaply.
The even better solution is:
HP/Dell/IBM/Unisys + SQL Server + .NET
Or maybe they get smart and just spin it off or kill it. Who knows.
Or does it depend on the meaning of the word "is?"
[So, Oracle+Sun+Java makes more business sense than IBM+Sun+Java ?]
I was hoping for IBM. My inhouse business software written by moi is all java/mysql/netbeans
I’d say so, especially in light of Oracles acquisition of Bea’s Weblogic Application Server
“Oracle also picks up the MySQL database, which is available free under an open-source licensing arrangement, and could help Oracle check sales of Microsoft’s SQL Server database to smaller companies.”
I am really hoping they dont Kill MySQL by trying to over integrate it with OracleDB. If they really just make a few common management tools and use it as their mid to low tier DB they may be onto something.
I think the big thing to realize here is that aside from Global Services Oracle can not match IBM almost App for App.
AIX <-> Solaris
DB2 <-> Oracle
WebSphere <-> Weblogic
Power <-> Sparc
—
IBM should have paid more just to keep oracle from pulling this off because I give it two, maybe three years, before Oracle has a consulting Arm aimed at eating away at IBM.
Well Given Oracle now controls the direction of Java and that OracleDB is Superior to IBM’s DB2 in many ways yes, in shops where a Mainframe is no longer a consideration Sun is the equal of IBM.
should be that oracle can *now* match IBM..
We may switch all of our new development to Ruby.
Oracle already offers a free version of Oracle db. MySQL will be the tease for Oracle.
The database is small potatoes compared to what will happen if Oracle starts charging license fees for JVMs.
My understanding is that IBM was told that their purchase of Sun would not go through because of anti-trust issues.
But the ‘free’ version of Oracle is extremely limited
- Database size is 4Gb
- No Java
- Platforms and # CPUs
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