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Oracle plus Sun equals to?

Updated on: 22 April,2009 09:20 AM IST  | 
Balaji Narasimhan |

One wonders why Oracle, a predominantly software company, wants to buy a hardware vendor like Sun

Oracle plus Sun equals to?

One wonders why Oracle, a predominantly software company, wants to buy a hardware vendor like Sun








Why? Why? Why?

In the context of Oracle buying Sun, one asks just one question why? After all, the only common thing between Oracle and Sun is that the former's software products do run on the latter's hardware. Many industry observers are also asking the same question. Some say that one reason why Oracle is buying Sun is because of Java, but software is a small part of Sun, and as analysts have pointed out, this argument may not cut much ice with Oracle's own shareholders.

Future focus

One other thing in common between Oracle and Sun is in databases. While Oracle has its Oracle RDBMS, which is one of the top database systems in the world, Sun has MySQL, which it acquired in 2008 for $1 billion. Now, what will happen to MySQL? Will Oracle continue to develop it? Also, will Oracle be able to take Sun's hardware division and make sense of it? This is an important question and one that nobody would have asked IBM, which is known for its hardware expertise. But Oracle is a pure software-only player whose only knowledge of hardware comes from the failed Network Computer concept that died with the dot-com boom. Naturally, Sun's hardware customers are bound to be worried.

And if Oracle and Sun don't take steps to clear the air and tell their users where they are heading, they might find their clients moving to their competitors.

QUICK TAKE
>>Oracle is planning to buy Sun for $7.4 billion
>>This move is questionable because Oracle is into software and Sun is a hardware company
>>Oracle may have trouble convincing its own shareholders

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