Welcome!

Eclipse Authors: Pat Romanski, Elizabeth White, Liz McMillan, David H Deans, JP Morgenthal

Related Topics: Recurring Revenue, Java IoT, Microservices Expo, Linux Containers, Open Source Cloud, Eclipse, @CloudExpo, CRM

Recurring Revenue: Article

Oracle-Sun: IBM Reportedly Behind Delay

IBM has plenty of practice using the European Commission to attack its enemies. Just ask Microsoft.

Well, well, well, a little bird points to IBM as gumming up the works with the European Commission so Oracle and Sun can’t close their deal.

Oracle of course picked up Sun after IBM’s negotiations with Sun failed and Oracle made IBM the intended target of the proposed acquisition in an ad on the front page of the Wall Street Journal last week so the idea that IBM is whispering in the EC’s ear makes perfect sense.

And IBM has plenty of practice using the European Commission to attack its enemies. Just ask Microsoft.

Oracle CEO Larry Ellison claims the European Commission’s prolonged investigation of Oracle’s proposed acquisition of Sun, which isn’t expected to finish much before the agency’s mid-January deadline, is costing Sun $100 million a month in revenues and a weakened revenue stream will impact how many employees Sun gets to keep if and when the acquisition is approved.

Ellison, who was interviewed on-stage after a Churchill Club dinner Monday evening by former Sun president and COO Ed Zander of all people, told the crowd, “The longer this takes, the more money Sun is going to lose, and that’s not good for anybody. We want to get this done to save as many jobs as possible.”

Sun’s fretful accounts either just aren’t buying because of the uncertainty of Sun’s fate and continued investment in its product lines or are being run off by IBM and HP. Ditto a lot of its resellers anxious over their revenue streams.

And to meet Oracle’s goal of wringing $1.5 billion in operating income out of Sun the first year after the merger closes, ace Wall Street analyst Toni Sacconaghi now estimates that Oracle will have to fire half of Sun’s people, 15,000 souls.

Ellison said he thinks the EC is going to approve the merger just like the Justice Department did in August without any strings attached.

He said he means to keep all of Sun and won’t sell off any of it, as has been widely supposed he would.

“We are keeping everything,” he said. “We’re keeping tape. We’re keeping storage. We’re keeping x86 and Sparc. And we’re going to increase investment in all of them.”

That means keeping rival open source database MySQL, whose future the EC claims to be so worried about and, it’s been conjectured, may force Oracle to spin it off. Ellison doesn’t think so. Oracle and MySQL serve different purposes, he said, and “do not compete at all.”

“We’re not going to spin it off,” he said, claiming the EC is going to decide the Sun merger is a wholly pro-competitive deal.

The reason he wants Sun and all its satellites is to turn Oracle into the new IBM like Byzantium was the new Rome.

Not the IBM of Lou Gerstner or Sam Palmisano, he said, but the IBM of TJ Watson, “when IBM really was the dominant software company” and its “hardware and software was running most of the enterprises on the planet.”

In Ellison’s opinion, “TJ Watson’s IBM was the greatest company in the history of enterprise in America” and “We think with the combination of Sun technology and Oracle technology we can succeed and beat IBM. That’s our goal. We have a deep interest in the systems business. We think that by combining our software with hardware that we can deliver systems that can be the backbone of most enterprises in America and around the world.”

Oracle, which reportedly doesn’t see Microsoft as a competitor any more, is currently working on a five-year plan to realize Ellison’s dream and Ellison, 65, told Zander he intends to stick around to see it happen.

Cloud computing, a faddish term thought up by “some nitwits on Sand Hill Road,” apparently won’t feature much in the plan. According to Ellison, the cloud’s “not water vapor. It’s databases and operating system and memory and microprocessors and the Internet!”

“All it is is a computer attached to a network.”

“My objection to cloud computing is the fact that cloud computing is not only the future of computing, it is the present and the entire past….What do you think Google runs on?”

Oracle’s not interested in Sun’s hardware per se but its hardware as the basis for end-to-end systems integrated “at the engineering level” with Oracle’s software. Ellison wants to peddle airline reservation systems and banking systems.

Larry’s quest for world domination will presumably be impeded by what he sees as slow economic recovery. The consumer is tapped out and up to his neck in debt, Ellison said, creating an “L-shaped” non-recovery for the next five years and involving some “fundamental changes.”

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...