VAR impact of Oracle-Sun deal not clear

The Oracle-Sun deal will mean more direct sales pressure, but one systems integrator cautions against panic.

Logicalis CFO Greg Baker

After European regulators approved the Sun-Oracle deal, Oracle execs said they plan to take the 4,000 biggest Sun customers direct. That tidbit shook Sun channel partners to the core. In this podcast, Logicalis CFO Greg Baker and Senior News Director Barbara Darrow discuss the impact that the Oracle-Sun deal will have on VARs and system integrators.

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Logicalis CFO Greg Baker on Oracle-Sun deal

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Darrow: We're talking about the completion of the $7.4 billion buyout of Sun by Oracle, and Charles Phillips on the call this morning pretty much said that they're going to do vertically integrated appliances -- that customers don't want to deal with systems integrators and third parties. In fact, he says they don't want to deal with third-party software vendors, either. They want a one-stop shop, and that is not a good message for channel partners. I wonder if you could comment on that?

Baker: We see most of the manufacturers trying to take a similar strategy. It's a market share, wallet share grab, and it's aimed at simplifying a customer's world -- one stop shopping and one throat to choke with applications that stack up on infrastructure and are delivered in a holistic way.

I believe that there is still a vital role for the system integrator, because as these new offerings come to market, we've seen Cisco do similar things, we've seen HP and IBM, and there is still significant risk with your existing assets -- making sure that you have the ability to interface with any new investment that you're making.

When you center on a new platform, like the very good Sun platform, you're putting all your eggs in one basket. You still need to make sure that you're getting good unbiased advice from somebody that you trust in the marketplace, and these new stacks are going to take some time to mature and gain acceptance out there. We'll see what technology wins out. Certainly what Sun announced today was interesting.

More resources on the Oracle-Sun deal

Oracle-Sun combo sparks VAR anxiety

Oracle-Sun deal done, channel shakeout expected

EC to Oracle-Sun deal: It's a go

Oracle-Sun Microsystems deal delay takes its toll

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