Sun Microsystems and Oracle Deal a Dud of a Deal

Sun Microsystems is a Dud

Sun Microsystems is a Dud

Oracle has been a favorite for many years. It has made goodacquisitions over the past ten years. It has acquired BusinessIntelligence, CRM (through PeopleSoft) and has made countless othergood acquisitions.

Until now.

Sun Microsystems is simply not a good deal. JAVA is great, but whatis that worth? How does that add to revenue? It is free as an add-on,but there are competing environments from both Microsoft and Adobe.

* Revenue fell 20 percent to $2.61 billion in Sun’s fiscal thirdquarter ended March 29, compared with the average analyst forecast of$2.85 billion
* Computer sales dropped 29 percent to $1 billion
* Storage equipment sales fell 20 percent to $425 million.
* Software sales rose 27 percent to $187 million
* Services revenue fell 13 percent to $1.1 billion.

Check out these results from Sun. Awful.

Software sales don’t account for much of Sun’s earnings.

Team Oracle. Sun to Set with Acquisition

Team Oracle. Sun to Set with Acquisition

This is claimed by Oracle to be an acquisition of Java, but it is not.Sun Microsystems generates much of its revenue from hardware. Oracle isnow essentially adding competition for itself: it is entering thehardware space.

Shane posted some great links that needs to be re-iteraterated as a counter-argument:
How Oracle and Sun can get their act together:…

What Oracle-Sun means for Java, open source and RIAs…

Oracle as OEM: Behind a strategic shift…

I think that Oracle is getting into the open-source community andreally needs to tread carefully. OpenOffice and OpenSQL come to mind:……

Disclosure: No holdings in ORCL or JAVA as Illustrated in KaChing.Com

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada
Chris Lau
Chris Lau
In search for alpha. Telecom, media, technology. Social media. Financial Markets. Real-Estate Agent. Seeking Alpha Contributor. Toronto, Ontario ·

Featured Download

IT World Canada in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Latest Blogs

Senior Contributor Spotlight