Price of the Setting Sun
Posted in digital business on April 20th, 2009 by irv – Be the first to commentNot long ago when there was a rumor that IBM might by Sun Microsystems (see All the Failure Money Can Buy) I gave the opinion that this was a bad thing that IBM should not pursue. IBM didn’t pursue it and life went on.
Now today we have the news that a deal has been reached for Oracle to buy Sun instead (Oracle To Buy Sun For Approximately $7.4 Billion – Hold On To Your Hats). So the question is, is this as bad for Oracle as it would have been for IBM? Short answer: Not as bad, though still not great. Most of my reasons for thinking Sun was a bad buy for IBM apply to anyone who would buy Sun. I just don’t believe Sun has much of a future.
Weirdly, Sun claims that Java is an incredibly important part of the purchase. If I had any stock in Oracle, I’d sell it on the strength of that pronouncement alone (but I’m poor. I don’t own stock in anything, thank God). There is another aspect of the purchase that has to be taken into consideration, however. It’s called Mysql.
Mysql is a (mostly) free database package that comes included with most Linux installs and runs a ridiculously large percentage of Internet websites and applications. Sun bought Mysql a little over a year ago for $1 billion (Sun to Acquire Mysql). That’s right: They paid a billion dollars for a (mostly) free product. Shortly thereafter they started looking for somebody to buy the whole company because they were losing ground fast. Can we say, “Oops?”
linkedin
Technorati Favorites