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Oracle-Sun convergence: What VARs need to know about the acquisition

Editors, SearchITChannel.com

Oracle officially acquired Sun Microsystems for $7.4 billion in January 2010 and the reverberations have rocked the IT channel ever since. Here's what VARs need to know about the Oracle-Sun convergence and how it will eventually affect Java, open source software development, Solaris, enterprise applications, middleware and Sun’s hardware businesses.

The latest on Sun-Oracle

Here you can find the latest news on the Oracle-Sun convergence. Follow developments from the beginning of the Oracle-Sun acquisition to the present day and learn what is in store for Oracle, Sun, their VARs and other companies in this market.  

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Oracle Exadata sales lauded but other hardware sales fall (June 28, 2011)

While overall Oracle-Sun hardware sales fell year-over-year, Oracle claimed big Exadata numbers on its fourth-quarter conference call. 

Oracle drops Intel Itanium development (March 23, 2011)

Oracle said it will stop software development for the flagging Intel Itanium chip, following similar moves from Red Hat and Microsoft. Oracle's decision to drop the Itanium chip, which is a joint development venture between Intel and HP, fuels more tension between HP and Oracle because it forces force mutual customers to choose between the two software manufacturers. 

Oracle Exalogic appliances intrigue VARs (Sept 21, 2010)

Oracle’s Exalogic “cloud-in-a-box” server may be intriguing, but some VAR see little upside for them in this high-end appliance. VARs have a hard time justifying Exalogic pricing for these high-end machines which promise significantly faster database platform runtimes. Oracle CEO Larry Ellison quoted the Exalogic price tag to be $1,075,000 but that only covers the hardware cost for a full-rack system. VARs will have to decide if they can make money on the Exalogic before investing. 

Hurd in, Phillips out at Oracle (Sept. 7, 2010)

A month after his ouster as Hewlett-Packard CEO, Mark Hurd has a new job—as president of Oracle, well actually co-president with Safra Catz. Charles Phillips, who had shared the reins with Catz, resigned after the Sun Microsystems convergence making way for Hurd. With the Oracle-Sun buyout and Hurd's extensive hardware background, he may be able to help heal the misconception that Oracle doesn't "get" hardware.

Oracle-Sun: The Java community speaks (Feb. 4, 2010)

A few of Sun Microsystems' projects will stop in the wake of Sun’s takeover by Oracle, but the important Java tools will stick around. Oracle reaffirmed its intent to keep its own Java-based software products as "strategic" while also maintaining Sun's Java tools more as reference implementations. Java community members say tools like NetBeans and GlassFish will have their place, but a more limited one. Oracle plans to compete with IBM for large enterprise contracts more than to focus on gutting and repositioning a few open source development tools.

Top questions for Oracle following the Oracle-Sun deal (August 26, 2010)

There are so many questions about what Oracle will do with its new Sun franchise, it’s hard to suss out the top few, but here’s a try. For example, fInd out what Oracle and Fujitsu will do vis-à-vis the Sparc64 chip. Watch for Oracle’s aggressive software audits, and determine whether or not Oracle will support Solaris on IBM hardware. The biggest question: What will Oracle buy next? 

Oracle to take more Sun hardware renewal biz direct (August 16, 2010)

 Many Sun VARs will no longer be able to sell Sun hardware support. Come October, Oracle will allow a few Sun VARs to continue selling hardware renewals. Given the $7.4 billion acquisition of Sun Microsystems. Oracle CEO Larry Ellison stated strongly that Oracle will sell, service, and support more Sun software products directly i.e., without partner involvement.

Sun users heartened by Oracle’s pledge to support Solaris (Jan. 27, 2010) SearchDataCenter.com

Sun users were heartened by Oracle's pledge to support Sparc, Solaris Sun’s two bedrock technologies. Oracle pledged continued investment in Sparc chips and Solaris operating system, although the company's x86 plans remain a concern.

Helping Sun hardware VARS take the Oracle leap

Arrow ECS unveiled a Fast Track program to help Sun hardware VARs move into the Oracle Partner Network (OPN).

Oracle holds back Sun hardware rebates (June 29, 2010)

VARs say Oracle is months late with Sun hardware rebates they need to fund their businesses. While Sun Microsystems customarily paid out rebates monthly, Sun VARs are still waiting for rebates from February. They are also waiting to hear if Oracle will pay hardware sales rebates at all in its next fiscal year. VARs eagerly await the MIA rebates from Oracle because they comprise one to two-thirds of their margins.

Oracle hardware support plan stings Sun VARs (May 7.2010)

Oracle hardware support policies are driving Sun Microsystems customers away. Sun VARs said Oracle hardware support now costs more and is less flexible than the support previously provided by Sun Microsystems. Customer dissatisfaction with Oracle support means many IT shops will look to IBM and HP for better deals.

Oracle-Sun combo sparks VARs anxiety (Jan. 27, 2010)

Oracle will take Sun's biggest 4,000 accounts direct, claiming that customers want hardware, software and support from one vendor. That provokes huge worry among Sun hardware partners who may no longer be able to participate in renewal revenues. Juergen Rottler, vice president of customer services, said Oracle feels strongly that it must directly support its customers. Oracle-Sun deal done, channel shakeout expected (Jan. 21, 2010)

The Oracle-Sun deal has finally closed, but Oracle and Sun partners are only beginning to voice their concerns. Sun partners worry they will no longer get maintenance renewal revenue, and small Sun VARs will likely disappear from the changing Oracle ecosystem. Competition for software license sales will increase as remaining Sun partners enter the Oracle landscape and as Oracle extends its direct sales focus to more customers.

VARs turn wary eye on Oracle-Sun combo (April 20, 2009)

Partners aren't crazy about a match between Sun and Oracle, but Sun needed to do something to avoid certain extinction. With the multi-billion-dollar acquisition, Oracle now stands stronger against Microsoft and IBM filling its own stack and gaining valued Sun support and maintenance revenue.

Oracle buys Sun (April 20, 2009)

Well that didn't take long. Oracle is buying Sun, in a deal worth about $7.4 billion, the company said in a statement.  The news comes both as a surprise and not. Oracle and Sun once relied heavily upon each other with Sun hardware acting as the preferred platform for Oracle databases. But, as Oracle focused more on Linux versus Solaris, relations soured. Oracle now plans to buy Sun, a deal that is expected to increase Oracle’s non-GAAP profit over $1.5 billion in the first year.

Oracle-Sun combo; what does it mean for enterprise Java? (April 20, 2009) SearchSOA.com

Oracle's $7.4-billion offer to buy Java-originator Sun Microsystems re-arranges the enterprise Java landscape.. If the deal is completed, Oracle said it will increase investment in Java technology and get greater control over Java standards. The acquisition of Java is key in Oracle’s plan to buy Sun Microsystems, and compete head-to-head in computer hardware against IBM.

Sun-Oracle history

Get all the news and background about Oracle and Sun before the $7.4 billion Oracle-Sun acquisition. Follow the developments leading up to the Oracle-Sun convergence and learn the history of the Oracle-Sun relationship.

Oracle rolls out price hikes on app server, database (June 18, 2008)

Oracle's new price list includes hefty price hikes on BEA's application server and the Oracle database. This came as no surprise for VARs who braced themselves for higher prices after Oracle closed its $8.5 billion buyout of BEA. Oracle’s lead app server, BEA Weblogic, now costs $25,000 up from $17,000.

Sun-Oracle renew their vows (June 12, 2006) SearchDataCenter.com

Grid computing to provide capacity on demand and mutual admiration for the Java formed the heart of love fest between CEOs Larry Ellison and Scott McNealy. Oracle and Sun renewed their commitment to both companies’ core technology as part of a grid package which will include UltraSPARC Sun servers and storage with an Oracle database and support. This partnership sparked jokes between Ellison and McNealy about a possible Oracle-Sun merger. Funny, huh?

Partners weigh Sun’s acquisition of MySQL (January 16, 2008

Channel partners weighed the impact of Sun Microsystems acquisition of the MySQL database on commercial and open source software. The deal drew mixed reactions from partners who feared that Sun may increase MySQL fees. While some viewed the buyout as a move against Oracle, Sun said it was merely supporting MySQL as part of its overall LAMP software development platform.


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