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What Oracle Sees in Sun (Sun's Java language will become a strong revenue source)
Businessweek ^ | 4/21/2009 | Aaron Ricadela

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 ...


TOPICS: Business/Economy; Editorial; News/Current Events
KEYWORDS: ibm; java; oracle; siliconvalley; sun; sunmicrosystems
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To: dfwgator

I dont think oracle could charge for JVM’s without destroying Java..


21 posted on 04/21/2009 10:50:42 AM PDT by N3WBI3 (Ah, arrogance and stupidity all in the same package. How efficient of you. -- Londo Mollari)
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To: N3WBI3

What does MySQL offer for free in that regard?


22 posted on 04/21/2009 10:56:27 AM PDT by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
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To: AppyPappy

The only limitation on MySQL that I am aware of is technical. It cant use more than one CPU per query


23 posted on 04/21/2009 11:05:49 AM PDT by N3WBI3 (Ah, arrogance and stupidity all in the same package. How efficient of you. -- Londo Mollari)
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