Web1.0’s major casualty, Sun has finally landed up in Oracle’s lap – for $9.50 a share in a deal valued at $7.4 billion.
Oracle will pay a premium of $2.81 a share, or 42%, over Sun Micro’s closing price of $6.69 a share on Friday. Oracle said the deal is valued at $5.6 billion net of Sun’s cash and debt. – source
Sun is one of the best examples of platform play gone awfully wrong.
While Java is one of the most deployed platform, Sun’s vision of selling it’s Solaris server business never picked up – primarily because of tight integration between product components which were way too costly (maintenance included).
Infact, Java as a platform-play was restricted to deep-pocketed enterprises only and the biggest competition came from LAMP world – slowly, they started losing developer love (after all, how many new age startups are running on Java?).
Majority of Sun’s $13.9 billion annual revenue comes from high-end servers and storage systems (all based on Java), while the market started shifting to less-expensive/open source servers (LAMP). Even open-sourcing Java didn’t help – the market evolved faster than Sun could think of (ironically, they have one of the best ‘organized’ developer communities!).
Platform that couldn’t sustain the lack of a solid business model – Sun portrayed Java as the next potion, just that it was internally paralyzed to sell that potion.
Couple of questions on post-Sun acquisition:
- What will happen to Sun’s open-source initiatives? Oracle was never an initiator to open source – so what’s the incentive for them to keep the show running?
- What about MySQL – a direct competition to Oracle’s core, i.e. Oracle DB? Will it meet the same fate as Siebel?
- Will SUN products end up as just-another-stack in Oracle’s business?
This is surely, end of an era.
What’s your opinion?
Also see: SUN shines on MYSQL
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