Oracle to buy Sun Micro, enters hardware market
Nine o'Clock - 22 Aprilie 2009
BOSTON - Oracle Corp plans to enter the computer hardware market by buying Sun Microsystems Inc for more than USD 7 billion, swooping in after Sun's talks with IBM fell apart.
The announcement on Monday surprised many Oracle watchers, who believe the company can boost profitability at Sun's software businesses but were unsure if it can be as successful with Sun's hardware unit amid stiff competition from International Business Machines Corp, Hewlett-Packard Co, Dell Inc and new entrant Cisco Systems Inc.
Oracle Chief Executive Larry Ellison and Sun Chairman Scott McNealy are two Silicon Valley pioneers who have become close friends over the past two decades as their companies worked together to take on rivals like Microsoft Corp and IBM. Oracle will pay USD 9.50 a share for Sun, which values the high-end server and software maker at about USD 7.06 billion, based on 743 million shares outstanding as of the end of its fiscal second quarter on December 28, according to Sun. Sun previously rejected IBM's offer to pay up to USD 9.40 a share, according to sources with knowledge of the matter.
Microsoft could be a winner in Sun-Oracle deal
Microsoft has had few critics more vocal than Oracle CEO Larry Ellison and Sun Chairman Scott McNealy. If Oracle retools itself as a systems vendor, as it suggested that it might, that could put pressure on server vendors such as Dell and Hewlett-Packard to cozy up more with Microsoft, which does not operate a competing hardware business. If hardware divisions at Oracle partner companies feel threatened by the deal, it could be bad news for Oracle's software business, according to Miko Matsumura, a former Sun executive who is now deputy chief technology officer at Software AG. Matsumura believes the deal could drive HP into a tighter relationship with Microsoft as Oracle tries to work through the massive acquisition.
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Tags: oracle
hardware
microsoft
ibm
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