BRUSSELS ( TheStreet) -- Oracle (ORCL - Get Report) finally gets its hands on Sun, (JAVA) after the European Union approved the controversial $7.4 billion acquisition.
The deal might have significant ramifications across the tech sector, expanding Oracle's reach well beyond its traditional database software business and increasing competition with
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. Brimming with servers and storage, Sun initially seemed a strange target for Larry Ellison's huge firm, although Oracle had already made a play into the hardware business with its Exadata storage server (which uses Sun's kit).
Sun may have earned a reputation for poor execution in recent years, but it has a broad footprint that encompasses enterprises, service providers, and high-end data centers, all of which provide Oracle with an opportunity to carve out additional revenue.
The greater strategic value for Oracle, though, comes in Sun's Java, Solaris and
software technology. MySQL, which competes with
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SQL and IBM's DB2, is one of Sun's brightest rays and was the major
bone of contention
in the Oracle-Sun deal. Regulators initially voiced concern over Oracle's willingness to maintain MySQL's open-source credentials.
With the deal now rubber-stamped by the E.U., Oracle can use MySQL to
extend its reach
, particularly into the small- to medium-sized business market.
Sun's Solaris software is also a major platform for Oracle's databases and Ellison is
expected to optimize
his company's software for some of Solaris' high-end features.
Java, on the other hand, could open the door to Sun's vast installed base, as well as its extensive partner ecosystem.