InfoWorld - With Oracle's proposed acquisition of Sun Microsystems stalled by European Union deliberations, industry dignitaries offered mixed perspectives recently on the ultimate fate of the deal and what it could mean for Sun technologies if the deal falls through.
The $7.4 billion merger is stalled over EU concerns over the fact that the commercial database giant would own the open source MySQL database, which is now Sun property. And the stalled buyout has left Sun's fate up in the air, with customers and employees uncertain as to what will happen -- perhaps leading to an erosion of Sun's values as customers and employees begin looking elsewhere.
"There's been a pause or lull in the market regarding Sun products because Sun customers have been waiting" on the merger, said Gartner analyst Ray Valdes. There is a lack of clarity on which products Oracle will invest in, he said. (Oracle has offered some guidance, emphasizing intentions to continue technologies such as Java, MySQL, Sun hardware, and the OpenOffice application suite.)
Competitors are certainly noticing the effects: "I just wouldn't want to be one of those customers with uncertainty and ambiguity," said Tim O'Brien, Microsoft's senior director of platform strategy. Meanwhile, the layoffs at Sun keep coming, with 3,000 job cuts announced recently.
Sun's options if Oracle walks away But what if Oracle walks away from the Sun buyout rather than accept conditions the EU might impose to protect MySQL? A failure to consummate the buyout would leave Sun in a weakened state but could in fact provide more clarity on the future of the Sun portfolio, said Valdes. Right now, Sun cannot say much about what it is doing, he said. (Oracle's Larry Ellison has stated publicly that he has every intention of completing the Sun buyout. Neither Oracle nor Sun would comment for this story.)
Still, if Oracle does walk away, it's likely Sun would then look for a new buyer rather than try to remain independent, said RedMonk analyst Stephen O'Grady. The recession of 2008-09 hit Sun at the worst possible time, and Oracle provided a safe haven in troubled times when it agreed to buy Sun last April. Since then, Sun's position has gotten worse, so it would still need a rescuer.
Not that finding another owner would be easy: "They are well down the road to considering themselves part of Oracle, so the logistics of finding another buyer are difficult," he noted -- especially because Sun reportedly is losing $100 million a month, O'Grady said. "The economic implications for Sun, if the deal falls through, are not good," he said: A new buyer would not pay as much as Oracle did.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- The value of smarter oil and gas fields With global energy requirements continuing to rise, the exploration, development and production of new oil and gas resources are shifting to increasingly challenging...
- Smarter Environmental Analytics Solutions: Offshore Oil and Gas Installations Example This IBM Redbooks® Solution Guide describes a solution for implementing smarter environmental monitoring and analytics for oil and gas industries. The solution implements...
- Piecing Together the Business Intelligence Puzzle Business intelligence (BI) technology collects and analyzes company data, delivering relevant information to corporate decision-makers in an effort to produce favorable outcomes.
- Harness IT -- An Introduction to Business Intelligence Solutions Learn the key selection criteria required to provide your organization with the capability to address structured data, unstructured data and mobile demands so...
- Live Webcast Increasing the Value of Your Reports and Dashboards Learn how incorporating other analytical capabilities such as predictive modeling and visualization can increase the value of your reports and dashboards by providing...
- The Software-Defined Data Center: Is your ADC ready? Data center transformation is accelerating beyond virtualization to next-generation cloud architectures and software-defined data centers, bringing new challenges for application performance, scalability and...
- Application Acceleration: Optimize the End-User Experience Watch this on-demand webcast and learn how you can optimize your web content, accelerate performance across any device and browser combination, and offload... All Business Intelligence/Analytics White Papers | Webcasts