Oracle To Purchase Sun Microsystems for $7.4b

by on April 21, 2009 · 3 comments· LAST UPDATED April 22, 2009

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Look like combined company will give a tough time to both IBM and HP.

Sun Microsystems and Oracle Corporation announced yesterday that they have entered into a definitive agreement under which Oracle will acquire Sun common stock for a total of $7.4 billion or $5.6 billion net of Sun's cash and debt.

From the press release:

There are substantial long-term strategic customer advantages to Oracle owning two key Sun software assets: Java and Solaris. Java is one of the computer industry's best-known brands and most widely deployed technologies, and it is the most important software Oracle has ever acquired. Oracle Fusion Middleware, Oracle's fastest growing business, is built on top of Sun's Java language and software. Oracle can now ensure continued innovation and investment in Java technology for the benefit of customers and the Java community.

A few facts about Sun and Oracle

  1. Sun Microsystems founded in 1982
  2. HQ at Sanata Clara, California
  3. Employees - 33,556
  4. Revenue (year 08) - $13.9bn
  5. CEO - Jonathan Schwartz
  1. Oracle founded in 1977
  2. HQ at Sanata Clara, California
  3. Employees - 55,000
  4. Revenue (year 08) - $22.4bn
  5. CEO - Lawrence Ellison

Free software and Oracle

Now the million dollar question - what happens to MySQL and OpenOffice?

Now Oracle will offer a fully supported platform from database to hardware. They have re-branded RHEL clone. Solaris is the best platform to run Oracle and Sun's hardware is rock solid. According to IDC 2008 report Solaris has still has the highest market share for Unix operating system. Market share for UNIX big irons:

=> IBM 37.2%
=> Sun 28.1%
=> HP 26.5 %

I hope new Oracle will keep Sun name for its hardware. See Sun's legacy at forbes.com. Personally, I think MySQL will be safe in Oracle's hand.

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{ 3 comments… read them below or add one }

1 Akshay Sulakhe April 22, 2009 at 3:19 pm

I am most worried about MySQl…what they will do with that product..also many mysql staff is leaving…the internet depends on MySql…it will be doomed…

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2 Ron Hinchley April 25, 2009 at 2:27 pm

MySQL is the question. Its rapid growth is a huge threat to Oracle. The IBM offer was so close to the Oracle offer. I think even without the premium the share holders would be better served by IBM.

MySQL, OpenOffice and NetBeans user.

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3 Namal Kulathunga May 26, 2009 at 5:38 pm

I’m also worried about MySQL…….
This is the DB which, most of us use and the best for small and medium businesses.
What will Oracle do with this???????

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