This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sun-Oracle Deal Could Shake Up Tech

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 IBM (IBM - Get Report) and Hewlett-Packard (HPQ - Get Report) . 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 MySQL software technology. MySQL, which competes with Microsoft's (MSFT - Get Report) 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.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HPQ $11.59 1.22%
IBM $147.29 1.53%
MSFT $50.39 0.90%
ORCL $39.41 0.46%
AAPL $92.72 -0.56%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs