Oracle plays up promise of Sun take-over

Oct 12, 2009 by Glenn Chapman
Oracle CEO Larry Ellison delivers a keynote address at the 2009 Oracle Open World conference in San Francisco, California. Ellison opened fire on US technology veteran IBM and expressed optimism about the pending 7.4-billion-dollar-deal to buy Sun Microsystems.

Oracle chief executive Larry Ellison opened fire on US technology veteran IBM and expressed optimism about the pending 7.4-billion-dollar-deal to buy Sun Microsystems.

While kicking off an Open World conference in downtown San Francisco, Ellison vowed to merge his company's business software prowess with Sun's hardware innovations in a synergy powerful enough to take on IBM.

"We're in it to win it," Ellison said as he joined Sun founder and chief executive Scott McNealy on stage to open a week-long gathering of fans of Oracle's software for businesses.

"We look forward to competing with IBM...We think the combination of Sun and Oracle will be well equipped to go up against the giant."

Ellison threw down a gauntlet, challenging any company to run applications on a Sun-Oracle system.

If the Sun gear doesn't perform at least twice as fast, Oracle will pay the company 10 million dollars, Ellison said.

"By the way, IBM, you are welcome to enter," Ellison said in a swipe at the competitor.

McNealy and Ellison assured the thousands of Open World attendees that Oracle intended to invest in Sun, maker of SPARC microprocessors, database management system MySQL, and Solaris operating system.

"I believe our board and our shareholders made a very wise and exciting decision," McNealy said of backing they gave earlier this year to an acquisition by Oracle, based not far from Sun in Northern California.

"I'm counting on Larry and the Oracle team to take very good care of a very important legacy of mine."

Business software giant Oracle's bid for Sun is under investigation under EU merger regulation, according to the European Commission.

Brussels "has to examine very carefully the effects on competition in Europe when the world's leading proprietary database company proposes to take over the world's leading open source database company," sCompetition Commissioner Neelie Kroes said last month.

The 5.17-billion-euro deal for Sun, a one-time Silicon Valley star and developer of the popular Java programming language, was approved by Sun shareholders in July and the US Department of Justice in August, but is now on hold.

A decision is due by 19 January, 2010.

The Commission said it wants to be certain that customers would not face reduced choice or higher prices as a result of this takeover. Databases are a key element of company IT systems.

Oracle, IBM and Microsoft together control about 85 percent of the database market in terms of revenue, according to the EU.

made a bid to acquire Sun but was edged out by Oracle.

Among the issues the Commission expressed interest in addressing was Oracle's incentive to further develop MySQL as an open-source database.

"If this merger goes through, and we think it will, we will spend more not less on MySQL," Ellison said.

Ellison compared a combined Oracle-Sun with Apple, the iconic California company that makes iPhones, iPods, and Macintosh computers.

"Whatever you think of Apple, I think they've done a terrific job of tackling the hardware problem at the same time they tackle the software problem," Ellison said.

"With the merged companies we're going to try to make all the pieces fit together well."

Oracle develops, manufactures and distributes company software, and is the market leader in proprietary databases -- big beasts for large-scale management of businesses' commercial information.

Sun, meanwhile, has built up the leading databases -- which are now able to support similarly large-scale commercial databases running to hundreds of computing Gigabytes in size.

(c) 2009 AFP

Explore further: Nigeria launches national identity card scheme

add to favorites email to friend print save as pdf

Related Stories

Software giant Oracle buys Java whizz Sun

Apr 20, 2009

Business software giant Oracle announced Monday it was buying Sun Microsystems and its Java programming language for 7.4 billion dollars after IBM abandoned its bid for the struggling tech company.

Oracle, Sun link up for new product; HP snubbed

Sep 16, 2009

(AP) -- With the fate of its proposed $7.4 billion takeover of Sun Microsystems Inc. uncertain amid antitrust scrutiny, Oracle Corp. is moving ahead with a new product incorporating both companies' technology, and snubbing ...

Oracle says Justice Dept allows $7.4B Sun deal

Aug 20, 2009

(AP) -- Business software maker Oracle Corp. said Thursday it has received the Justice Department's approval to move forward with its $7.4 billion acquisition of former dot-com-era star Sun Microsystems Inc.

EU reveals probe into Oracle's bid

Sep 03, 2009

Business software giant Oracle's 7.4-billion-dollar bid for Sun Microsystems is under investigation under EU merger regulations, the European Commission announced on Thursday.

Oracle's Larry Ellison says Sun losing $100 million a month

Sep 25, 2009

Declaring that Sun Microsystems is losing $100 million a month, Oracle CEO Larry Ellison has expressed frustration over an extended European antitrust review that has delayed his plans to acquire the struggling computer maker.

EU delays Oracle-Sun deal, probing database market

Sep 03, 2009

(AP) -- Oracle Corp. figured its $7.4 billion buyout for Sun Microsystems Inc. could skate through antitrust scrutiny, folding Sun into a technology powerhouse when Sun badly needs the lifeline. Both companies will have ...

Recommended for you

Chinese e-commerce rivals challenge Alibaba (Update)

18 hours ago

China's biggest property developer, Wanda Group, and Internet giants Baidu and Tencent unveiled a new e-commerce venture Friday in a challenge to industry leader Alibaba Group ahead of its U.S. stock offering.

Nigeria launches national identity card scheme

Aug 28, 2014

Nigeria's President Goodluck Jonathan on Thursday launched a national electronic identity card scheme, which backers said would boost access to financial and government services in Africa's most populous nation.

User comments : 0