Oracle to buy SUN for $7.4B

I’m starting to feel like the boy who cried Wolf. Unlike the IBM announcement, the SUN board has approved this merger. Oracle is even offering $0.10 more per share than IBM…interesting. Some snippets from the analysts include:

Shannon Cross, Cross Research: “It’s a very interesting acquisition in that it gives Oracle a very strong operating system. It gets hardware, which should be interesting to see since Oracle doesn’t make things. It’s going to give them access to customers who weren’t using the Oracle database.”

Robert Jakobsen, JYSKE “It makes sense also historically, Oracle has been more successful commercializing software than Sun.”

It even appears that even Steve Ballmer from MSFT is “very surprised” according to this article.

I wonder what this is going to do on the eHealth side of things. I think Robert Jakobsen has nailed it. This is not so much about SUN hardware, I seriously doubt Oracle would pay this much money for a declining UNIX server player…although it does get them into hardware. This is about Java and how important this has become to the Oracle stack.

It will be odd, in the Canadian eHealth market, to see Oracle go from pure Infrastructure player to selling Apps and SI services (ie portions of big provincial EHR projects across Canada).

Mark

3 responses to “Oracle to buy SUN for $7.4B

  1. Mark, from another Mark, it’s also about MySql vs Oracle…

  2. Interesting point Mark. About 75% of all the posts I read about the MySQL vs Oracle angle is they are not likely to kill MySQL. I find it hard to imagine Larry Ellison of all people offering an entry level “free product” that competes with their high margin DB….times sure have changed since I’ve been in tech. 🙂

    Mark

  3. Mark, how will the merger impact Oracle’s position in the eHealth market? Both companies are part of a number of major eHealth initiatives. Oracle’s involvement includes the Quebec EHR and the Saskatchewan EHR. Sun has a significant role in NS and and the BC lab system (PLIS). The two companies seem to have complementary software. I suggest that, based on my experience, Oracle has the more aggressive sales force.

    Mike

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