API Journal Authors: Pat Romanski, Carmen Gonzalez, Andreas Grabner, Liz McMillan, Lori MacVittie

Related Topics: SAP HANA Cloud, Java IoT, Recurring Revenue

SAP HANA Cloud: Article

Oracle Snaps Up Sun, Gains Control of Java

Sun surprised everybody who thought it had no options left

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.

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

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

@ThingsExpo Stories
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, will discuss the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They will also review two "free infrastruct...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.