UPDATE: Sun Founder Says Customers Should Embrace Oracle
12 October 2009 - 1:47PM
Dow Jones News
Customers of Sun Microsystems Inc. (JAVA), shouldn't fear the
pending acquisition by Oracle Corp. (ORCL), Sun's founder and
Chairman, Scott McNealy, said Sunday.
Speaking at the start of an Oracle user conference in San
Francisco, McNealy and Oracle's Chief Executive Larry Ellison, set
out to reassure both Sun's and Oracle's customers that database
giant Oracle had committed to investing in most of Sun's key
technologies after the $7.4 million acquisition closes, and that
the deal would enhance both companies' technologies.
The presentation by McNealy, which kicked off the conference, is
a sign of the importance for Oracle in communicating with Sun
customers. It comes amid growing uncertainty over the deal among
customers, partners and investors amid an antitrust probe into the
deal, and as Sun loses customers to rivals.
McNealy name-checked in particular technologies such as Sun's
Sparc processor technology, its Solaris operating system, Java, a
computer language which is part of the plumbing of the Internet,
and Sun's MySQL open source database.
"The question is, as we head into a new chapter, will this
innovation continue? The first thing everyone asks is what will
happen with Sparc?" McNealy said.
"We went and asked Oracle and Oracle is committed: they're going
to spend more money developing Sparc than Sun does now. That's a
good sign."
McNealy made similar assurances about other key Sun
technologies.
The Sun acquisition is expected to take center stage at Oracle's
Openworld event, which takes place over the course of five days and
is attended by customers and partners from around the world. While
Oracle's core audience at the event is the large corporate
customers who buy its databases and business software, the Redwood
City, Calif.-based company will also want to reassure Sun's
customers about the future under Oracle ownership.
Oracle agreed to acquire Santa Clara, Calif.-based Sun in April.
But the deal's closure has been hampered by an ongoing probe by
European Union antitrust regulators. EU officials recently
triggered a more in-depth investigation into the deal, citing
"serious concerns" about the impact the deal could have on the
database market. Ellison previously told an audience of Silicon
Valley executives recently the delay was costing Sun around $100
million a month. Meanwhile, Sun has continued to lose market share
in the server market as customers like International Business
Machines Corp. (IBM) and Hewlett-Packard Co. (HPQ) have sought to
capitalize on the enforced delay to lure its customers away.
Ellison Sunday reiterated that Oracle, in spite of speculation
to the contrary, is committed to the hardware business it will
acquire when it buys Sun and will sell "no part" of the
business.
Ellison also took several sideswipes at rival IBM, which he said
had been telling customers Oracle would divest Sun's business.
Oracle said that the combination of Sun's hardware and the Oracle
database was faster and more reliable than similar products from
IBM. He said Oracle would take out advertisements offering to pay
$10 million to any organization which found that the combination of
Oracle and Sun didn't run at least twice as fast as an
alternative.
Notwithstanding the regulatory challenge, Ellison and Oracle
executives hope to build momentum around the Sun deal at the event,
and increase the visibility of Sun's products among Oracle's
customers.
High-profile Sun executives and technologists, including John
Fowler, a senior server executive, and James Gosling, who created
the original design for Java, discussed the benefits of running
Oracle's software on Sun's operating systems and processors.
-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455;
jessica.hodgson@dowjones.com