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Thank you Larry for finally putting us out of our misery, as Oracle has finally
silenced the chattering classes (mea culpa) with a $9.50/share bid for Sun (almost
smack dab in the middle between IBMs original and revised lower bids).
In many ways this deal brings events full circle between Oracle and Sun. The
obvious part is that the deal solidifies Oracles enterprise stack vs.
IBM in that Oracle can now go fully mano a mano against IBM for the enterprise
data center, database, platform and all. It also provides a welcome counterbalance
to IBM for control over Javas destiny. While the deal is likely to finally
put NetBeans out of its misery, it means that there will be a competition over
direction of the Java stack that is borne of realpolitik, not religion.
More importantly, it finally gives Solaris a meaning for existence as it returns
to serving as Oracles reference platform. In a way, you could state that
both companies were twins separated at birth, as both emerged as the de facto
reference platforms for UNIX in the 80s; the deal was sealed with Suns
purchase of some of the assets of Cray in the mid 90s that finally gave Sun
an enterprise server on which Oracle could raise the ante on IBM. Aside from
HPs brief challenge with SAP in the mid 90s, Solaris has always been the
biggest platform for Oracle.
But after the dot com bust and emergence of Linux, Solaris lost its relevance
as open source provided an 80/20 alternative that was good enough for most dot
coms. It left Sun with an identity crisis, debated much on these pages and elsewhere,
as to its next act. Under Jonathan Schwartzs watch, Sun tried becoming
the enterprise counter pole to Red Hat all the goodness of open source,
MySQL too, but with the bulletproofing that Red Hat and SuSE were missing. As
we noted a few weeks back, great idea, but not enough to support a $5 billion
business.
Now Solaris becomes part of the Oracle enterprise stack a marriage that
makes sense as businesses investing in high end enterprise applications are
going to expect umbrella deals. In other words, now Oracle has the complete
deal to counter IBM. Oracle in the past has flirted with database appliances
and certified implementations now it doesnt have to flirt anymore.
More importantly, it provides a natural platform for Oracle to offer its own
cloud.
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