“Trust is an ongoing journey and sits at the foundation of any vendor relationship – the companies that don’t consistently earn trust won’t be around long,” noted Henrik Rosendahl, Senior VP of Cloud Solutions at Quantum, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “As they do more with cloud, trust will organically grow – maybe it’s just about meeting SLAs or seeing firsthand that data is there when you need it,” Rosendahl continued.
Cloud Computing Journal: The move ...| By Maureen O'Gara | Article Rating: |
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| April 20, 2009 02:45 PM EDT | Reads: |
18,490 |
In a brilliant retrieve from the really nasty situation it was in after its deal to get bought by IBM fell apart, Sun surprised everybody who thought it had no options left – which was practically everybody – by turning up this morning with a deal to get bought by Oracle, Sun’s sometimes best friend. Oracle, Silicon Valley’s avaricious maw, agreed over the weekend to buy Sun for $9.50 a share, a total of $7.4 billion or $5.6 billion less Sun’s cash and debt.
un chairman Scott McNealy called the marriage of the “two titans” a “momentous day” that “refines the industry.” The Sun deal is not as big as Oracle’s acquisition of PeopleSoft, BEA or Siebel but gives Sun a 42% premium to last Friday’s $6.69 close.
The money is a bit sweeter than the $9.40 a share IBM had reportedly ultimately offered, but failed to reach the $10.50 neighborhood where IBM and Sun supposedly started talking.
McNealy & Ellison in a "Town Meeting" - January 2006
The Sun board has already blessed the deal, as one might imagine.
Oracle, which was reportedly only approached Thursday evening, had no time for the due diligence IBM reportedly did but it did run the numbers. It claims that Sun will contribute 15 cents to its earnings on a non-GAAP basis the first full year after closing, an event that’s supposed to happen this summer.
Oracle has none of the antitrust baggage that might have threatened and at least endlessly delayed an IBM-Sun acquisition and the Oracle-Sun deal unleashes a new animal into the marketplace that IBM might find has claws.
It lets Oracle – soon to be a combination of best-in-class enterprise software and mission-critical computing systems – in effect a mini- IBM – vertically integrate database to disk – at a time when data is king – and have everything fit together so its customers’ own integration costs go down – important right now – while system performance, reliability and security should go up.
Oracle co-president Charles Phillips remarked that Oracle’s “largest customers have been asking us to step up to a broader role to reduce complexity, risk and cost by delivering a highly optimized stack based on standards.”
He said Oracle might now turn out pre-packaged segment-specific machines that were the “complete industry in a box.”
Despite Sun’s horrendous string of losses, Oracle figures it can run Sun at a profit – which suggests a big remake at Sun – and that it will contribute over $1.5 billion to Oracle’s non-GAAP operating profits year one, increasing to over $2 billion in year two. The thought had Oracle CEO Larry Ellison obviously licking his lips on the early-morning conference call, which included no Q&A.
Oracle president Safra Catz said the Sun acquisition would be more profitable per share in year one than Oracle had planned for its BEA, PeopleSoft and Siebel acquisitions combined.
The Sun acquisition gives Oracle control of Java, the basis of Oracle’s all-important Fusion software and a component in literally billions of devices. Ellison called it “the most important software Oracle has ever acquired.” Oracle said it will ensure continued investment and innovation in the widgetry.
IBM has a vested interested in Java, so that’s a threat.
The deal also gives Oracle Solaris, which happens to be the leading platform for Oracle’s database. Linux is Oracle’s second most popular platform. Oracle said it can now optimize its database for some of Solaris’ unique, high-end features.
Oracle gave few details of what of Sun’s will survive. It said nothing, for instance, about the rival open source MySQL database that Sun spent a billion dollars to buy. Having about as little use for Microsoft as the old Sun, Oracle might put some effort into OpenOffice.
However, it did suggest that Sun’s Sparc machines might survive – at least for the time being – and contemplated converging storage, networking and computing driven by the Solaris. Its focus, Ellison said, will be on joint customers.
It is unclear what will happen to McNealy or Sun’s pony-tailed CEO Jonathan Schwartz.
Published April 20, 2009 Reads 18,490
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.
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More Stories By Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara
“Trust is an ongoing journey and sits at the foundation of any vendor relationship – the companies that don’t consistently earn trust won’t be around long,” noted Henrik Rosendahl, Senior VP of Cloud Solutions at Quantum, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “As they do more with cloud, trust will organically grow – maybe it’s just about meeting SLAs or seeing firsthand that data is there when you need it,” Rosendahl continued.
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SYS-CON Events announced today that MetraTech Corp., the leading provider of agreements-based billing™, commerce and compensation solutions, has been named “Bronze Sponsor” of SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York.
MetraTech Corp. is the leading provider of commerce, billing and compensation solutions enabling customers to monetize relationships with customers, partners, and suppliers. Its unique Agree...
Cloud computing is more than a buzz-phrase it’s a transformative IT paradigm shift. The emphasis in the cloud is on elasticity, scalability, agility and open. Not just open standards but open APIs and open source. The delivery of software is also going through a paradigm shift. Open source software was often a commoditization of a market leader; Unix to Linux or Oracle to MySQL what’s changing is that the iterative nature, user context and the motto of releasing early and often are driving real ...
In an ideal developer/systems administrator’s world, most applications would deploy seamlessly to multiple platforms and scale elastically with minimal effort bringing the unprecedented agility of the cloud within immediate reach of developer teams and IT organizations.
OpenStack, a RackSpace and NASA initiative, is now managed by an independent foundation and is supported by multiple vendors. It defines APIs for compute, storage, networking, services, monitoring, and additional infrastructure...
Organizations across the world are increasingly starting to see the benefits of moving more and more services to the cloud. The focus on the cost-saving potential of cloud is rapidly shifting to completely transforming the business with cloud. As organizations are investing enormous sums on technology they are starting to realize that in order to maximize the return on investment and accelerate the business transformation process the first area of focus should be people. By ensuring the organiza...
Storage and Archive offerings are now exploding on the market. From end-user mobile devices to company tactical level, the cloud has become a black hole for every kind of data. But what are the risks, and what are the real needs?
In his session at the 12th International Cloud Expo, Alexandre Morel, Cloud Product Manager & Evangelist at OVH.com, will answer questions such as:
How to develop a strategy to use those offers as a base to develop mid and long-term value?
Should companies trust th...
Companies around the world are collecting massive amounts of data everyday that’s sitting around and not being utilized. Take for example the fact that companies collect demographic and location-based data via mobile devices all the time, but have to figure out how to monetize that data.
In his session at the 12th International Cloud Expo, Jason Hoffman, CTO & Founder of Joyent, will examine the state of Big Data, taking a look at what we're doing now to discussing what's on the horizon, as co...
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