Friday, April 24, 2009

SUN buy out : Obvious but Fitful !




With the recent news of Oracle buying SUN has definitely propelled lot of thought process among concerned community.

As Larry has pointed out that they are trying to provide an end-to-end offering rather than stand alone solutions for their customer, we can also see some obvious advantage Oracle sweeping over IBM and SAP.

Until recently Oracle was mainly concerned about their Database rather than any business application and after its well known venture into ERP and CRM space they started using Java extensively which made them to buy SUN to retain the full control on their product life cycle. The open source Java and its mode of licensing in the future may remain a matter of contention and speculation but definitely this move brings the competitive edge of Solaris and Sun servers to Oracle's pocket. Historically Sun Server and Solaris OS are admired for its performance and dependability.


What I could see is the SAP getting impacted more due to this movement which could also be a deciding or may be a considerable factor behind this buyout where SUN server, Solaris and Java can make any ERP offering more lucrative than its peers. Till date SAP has a huge domination in ERP and CRM area and IBM Microsoft and Oracle are in their process to capture the high end space.

SAP had a paradigm shift a decade ago when they thought of migrating to an integrated platform and promoted Java in their Netweaver engine. ABAP stacks were replaced or moved to maintenance phase in many areas of SAP space. They have also changed their stand towards the use of Oracle Database as the back-end of their R/3 stack. But this acquisition keeps us guessing how they future of Java would be and how this is going to impact the web services and SOWA space or SAP.


No doubt this is a smart move from Oracle investing in a excellent technological firm in right time, the buying price is phenomenally low and all the odds seems to be in Oracle’s favor. But the main point is integration! As the offerings of SUN are totally diverse but still remain in different space from Oracle’s offerings. The integration and success is always a QUESTION MARK for any company. Let the TIME tell its story.
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1 comment:

Anonymous said...

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