Oracle’s Sun Acquisition

So, what’s the deal? Oracle and Sun have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt.

The Oracle-Sun deal came less than a month after IBM ended its talks with Sun.
In an earlier post on ‘tracking predictions of the future,’ I had cited an example of how predictions go wrong. The IBM-Sun deal fell through the weekend after the prediction was made that IBM will have bought Sun at a cut-rate price.

Transforming the IT Industry

Looks like this acquisition will transform the IT industry. After this acquisition, Oracle will compete directly against IMB, HP, Cisco an other giants. Here’s Oracle’s chance to assemble more offerings for corporate customers – hardware, software and services. Oracle could now optimize the Oracle database for some of the high-end features of Solaris, and become the only company to engineer an integrated system – applications to disk – where all the pieces fit and work together so customers don’t have to do it themselves. The customers benefit as their systems integration costs go down while system performance, reliability and security go up.

Could this be bad news for Sybase? Sybase has a lot of customers on Solaris, right?

(Source: Oracle Newsroom)