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Who bought the clunker?

CartoonCalvin100X100.JPGBy Calvin Zito, aka @HPStorageGuy 


I saw an ad last week that Oracle had - it showed an HP Superdome sitting in a trash heap and had a title of "Cash for Clunkers".  I talked about it (in 140 characters) on Twitter a couple of times last week asking "who really bought the clunker Larry" given you paid a bazillion dollars for Sun and have seemingly done very little with that company, especially the server and storage business. 


Funny enough, my good friends over on our Integrity team have a post titled "Whose clunker do you want cash for" with a chart showing how desperate and funny this program from Oracle is.  Check it out!

Labels: Oracle| storage| Sun

Oracle to buy Sun - what does it mean?

By Calvin Zito


What a bad day to do an announcement just prior to our HP Technology@Work event in Berlin this week!  We had a lot of interesting news that went out today but it won't get the attention it should because of the Oracle announcement today.  Here's a link to our online press kit where you can read more about our HP LeftHand, BladeSystem Matrix, and the StorageWorks MDS600:


So what does the announcement today of Oracle's intent to buy Sun mean?  My answer is a simple who knows?  What I find interesting is all of the speculation that is rampant across the internet.  I don't have an opinion yet on what it means because I just don't know what Oracle is trying to achieve beyond what they've said today but I'd like to make a few observations and point you to what's being said:


  • The presentation that Oracle used on this morning's investor relations call was titled "Oracle Buys Sun".  That just seems a bit odd to me.  I've been involved in more than a few HP acquisitions and prior to an acquisition closing, we are careful to say that we are announcing our intent to acquire - probably not a big deal but last I heard, the SEC hadn't approved the acquisition yet and neither had Sun and Oracle shareholders.  I'm not implying that this all won't happen (what Sun shareholder would say no to this bailout plan) - just seems premature to say that Oracle buys Sun.
  • I've seen two articles in eWeek, each having a bit different perspective: 
  1. In the first article, Oracle will keep the Sun software business and sell off much of the hardware (though the article says they'll keep the storage business).  Oracle wants control of Java and the ability to kill off MySQL.  The article went on to say that "the losers in the deal are likely end users who can expect higher prices for software and fewer choices."
  2. Another eWeek article said that storage and database hardware are key to the deal.  Whatever the case, Sun's storage just got a bailout deal from Oracle and better it come from Oracle than the Obama administration.  As to whether the GM or Sun bailout is successful, only time will tell.
  • In a SearchStorage article, John Webster from Illuminata said "People who have been delivering separate pieces are now potential acquisition targets. You could put NetApp and Brocade on that list."  Maybe he should put EMC on that list too.  I especially wonder what is going on at EMC after Cisco announced their partnership with NetApp within weeks of EMC's claim of "brave new thinking".  Also quoted in the article is Brian Babineau from ESG.  He said, "EMC and NetApp are going to have to work even harder to convince customers that an integrated application stack isn't the way to go."


I guess we'll have to see how this plays out but what do you think? 

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