COMPILED BY:

KAVITA MUDITA

INTRODUCTION
The acquisition of Sun Microsystems by Oracle Corporation was completed by Oracle on January 27, 2010. Significantly, Oracle, previously only a software vendor, now owned both hardware and software product lines from Sun.

Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing computer hardware systems and enterprise software products particularly database management systems. Headquartered at California, United States. Oracle is the third-largest software maker by revenue, after Microsoft and IBM

 It also provides hardware and services to help

companies improve their processes.

Best known for its focus on databases, it offers aid in

areas such as managing business data, collaboration and application development, customer relationship management, and supply chain management.

MISSION STATEMENT
Simplify: Speed information delivery with integrated systems and a single database. Standardize: Reduce cost and maintenance cycles with open, easily available components. Automate: Improve operational efficiency with technology and best practices.

 They believe that their customers get more from their information by using Oracle's software and services

and applying these principles.

Many have already improved their ability to use

information and IT as strategic assets and are now able to share data and processes, measure results for continuous improvement, align stakeholders, and communicate a single truth to all their constituents.

VISION
Each acquisition contributed to Oracles strategy of providing solutions rather than products to its customers. The end result is that any customer can come to Oracle and no matter what their requirements, Oracle will be able to provide them with an end-toend solution.

From the end-user point of view this has several visions. But the main ones are:
INTEGRATION SINGLE POINT OF SUPPORT COMPLETENESS ULTIMATELY

PRODUCTS
Oracle Database. (Oracle Application Server10g using Java EE integrates with the server part of that version of the database, making

it possible to deploy web-technology applications. The interrelationship between Oracle 10g and Java allows developers to set up stored procedures written in the Java language, as well as those written in the traditional Oracle database programming language, PL/SQL.) - Release 11g became the current Oracle Database version in 2007.

 Oracle Rdb, a relational database system, runs

on OpenVMS platforms. Oracle acquired Rdb in 1994 from Digital Equipment Corporation. Oracle has since made many enhancements to this product and development continues today.

 Oracle Essbase continues the Hyperion Essbase tradition of multi-dimensional database management.

Oracle NoSQL Database, a scalable, distributed keyvalue NoSQL database

Oracle Fusion Middleware

Some database administrators (DBAs) use Oracle Enterprise Manager (OEM) to manage the DBMS.

 Oracle Enterprise Manager 12c

Oracle Golden Gate

Oracle NoSQL Database Oracle Berkeley DB MySQL

Oracles acquisition spree started back in 2005 with PeopleSoft. Today, Oracle has acquired more than 50 companies which fall into five main categories: Applications (PeopleSoft, JD Edwards, Siebel, etc) Industry Solutions (Stellent, i-flex, etc) Middleware (BEA, AmberPoint, etc) Database (Times Ten, Sleepy Cat, etc) Servers & Storage (Sun Microsystems)

 Next is an image which shows Oracles acquisitions in the past 5 years grouped by category :

COMPETITORS
IBM dominated the mainframe relational-database market with its DB2 and SQL/DS database products, it delayed entering the market for a relational database on UNIX and Windows operating systems. This left the door open for Sybase, Oracle, and Informix (and eventually Microsoft) to dominate mid-range and microcomputers.

 IBM: IBM Software

MSFT: Microsoft Corporation

SAP: SAP AG IBM Software Database & File Management Software Supply Chain Management & Logistics Software Computer

Software

ACQUISITION
The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems, said Oracle CEO Larry Ellison. Oracle will be the only company that can engineer an integrated system applications to disk where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up.

HISTORY
The acquisition of Sun Microsystems by Oracle Corporation was

completed by Oracle on January 27, 2010. Significantly, Oracle, previously only a software vendor, now owned both hardware and software product lines from Sun (e.g. SPARCstations and Java, respectively).
A major issue of the purchase was the fact that Sun was a major

competitor to Oracle, raising many concerns among antitrust regulators, open source advocates, customers, and employees.
The EU Commission delayed the acquisition for several months over

concerns of Oracle's plans for MySQL, Sun's competitor to the Oracle Database. The commission finally approved the takeover, apparently pressured by the U.S. to do so, according to a Wikileaks cable released in September 2011.

 In late 2008, Sun was approached by IBM to discuss a possible

merger. At about the same time, Sun also began discussions with another company, widely rumored but unconfirmed to be Hewlett Packard, about a potential acquisition. By March 2009, talks had stalled between Sun and both IBM and the other potential suitor.
On April 20, 2009, Sun and Oracle Corporation announced that

they had entered into a definitive agreement under which Oracle would acquire Sun for $9.50 a share in cash. Net of Sun's cash and debt, this amounts to a $5.6 billion dollar offer from Oracle. Sun's shareholders voted to approve the proposal on July 16, 2009, although the deal was still subject to regulatory approvals
On August 20, 2009, it was reported that the U.S. government,

pursuant to the Clayton Antitrust Act, approved Oracle's purchase of Sun.

 On September 3, 2009, the European Commission announced

that it would not immediately approve the deal, but would instead perform a second round of investigation, focusing on the implications of Oracle's control of MySQL (acquired by Sun in 2008).
On October 20, 2009, Sun filed with the U.S. Securities and

Exchange Commission (SEC) its intention to cut 3,000 jobs globally over next 12 months, citing losses caused by delays in the acquisition process.

 On November 6, in its 10-Q filing for the 1st quarter of the

2010 fiscal year, Sun announced 25% total revenue decrease, compared to the 1st quarter of the previous year, due to "economic downturn, the uncertainty associated with our proposed acquisition by Oracle, increased competition and delays in customer purchasing decisions".
On January 21, 2010, EU Competition Commissioner Neelie

Kroes announced unconditional approval of the deal.

On January 27, 2010, Oracle announced that it had completed

its acquisition of Sun Microsystems, making Sun a wholly owned subsidiary of Oracle.

 There are substantial long-term strategic customer

advantages to Oracle owning two key Sun software assets: Java and Solaris. Java is one of the computer industrys best-known brands and most widely deployed technologies, and it is the most important software Oracle has ever acquired.
Oracle Fusion Middleware, Oracles fastest growing

business, is built on top of Suns Java language and software. Oracle can now ensure continued innovation and investment in Java technology for the benefit of customers and the Java community.

 The Sun Solaris operating system is the leading platform

for the Oracle database, Oracles largest business, and has been for a long time. With the acquisition of Sun, Oracle can optimize the Oracle database for some of the unique, high-end features of Solaris.
Oracle is as committed as ever to Linux and other open

platforms and will continue to support and enhance the strong industry partnerships.

IMPACT
Resignations

Several notable engineers resigned following the acquisition, including James Gosling, the creator of Java (resigned April 2010); Tim Bray, the creator of XML (resigned April 2009); and Bryan Cantrill, the cocreator of DTrace (resigned July 2010). While the deal was still pending regulatory approval, the JRuby team collectively resigned from Sun and moved to Engine Yard. The Drizzle DBMS team collectively resigned from Sun and moved to Rack space. Most of Sun's executive management team, including CEO Jonathan Schwartz, resigned immediately after the acquisition was complete. John Fowler, Executive VP of Sun's systems group, remained at Oracle as Executive Vice President of Hardware Engineering. In addition, Simon Phipps, Sun's Chief Open Source Officer, and Tim Bray, Sun's Director of Web Technologies also left the company.

OPEN SOLARIS
In early 2010, troubling signals began to emerge

concerning the future of Open Solaris. It was omitted from Oracle Product roadmaps. Then in August 2010, leaked documents indicated that Oracle would end releases of Open Solaris in May 2010. In addition, it would no longer release the developing Solaris source code during development. Instead it would only publish it after each new version of Solaris is released. Since Oracle was no longer supporting all the development of an open version of Solaris, the Open Solaris Governing Board disbanded, ending the project. Independent development continues with the Illumos fork.

MYSQL PETITION AND FORKS

A major issue discussed in media and considered by the EU

Commission was Oracle's acquisition of MySQL, an opensource competitor to Oracle acquired by Sun in February 2008, as part of the deal. In response, several forks were made with the intent to ensure the future success of MySQL despite being purchased by its biggest competitor. These include Drizzle and MariaDB.Monty Widenius, one of the founders of MySQL, also started a petition asking that MySQL either be divested to a third party, or have its licensing changed to be less restrictive than the previous GPL terms it operated under prior to and during its ownership by Sun.

Apache Software Foundation resignations

The Apache Software Foundation has resigned its seat on the Java SE/EE

Executive Committee due to Oracles refusal to provide a technology compatibility kit (TCK) to the ASF for its Apache Harmony open-source implementation of Java

Open Office resignations and fork

After Oracle ended Open Solaris, some members of the similarly open

source OpenOffice.org Project became worried about their project's future with Oracle. Thus they formed The Document Foundation and created the LibreOffice fork. The LibreOffice brand was hoped to be provisional, as Oracle had been invited to join The Document Foundation and donate the OpenOffice.org brand. In response Oracle demanded that all members of the OpenOffice.org Community Council involved with The Document Foundation step down from the Council, citing a conflict of interest. Many community members decided to leave for LibreOffice, which already had the support of Red Hat, Novell, Google, and Canonical. LibreOffice produced its first release in January 2011.

Program closures Project Kenai, a Source forge-like project for Java apps, was migrated to Java.net by Oracle.
Project Darkstar, a project to investigate and create solutions for issues in

massive online gaming environments, was closed by Oracle on February 2, 2010. Customer Relations Oracle has changed the software support model to also require hardware support. The new policy states "when acquiring technical support, all hardware systems must be supported (e.g., Oracle Premier Support for Systems or Oracle Premier Support for Operating Systems) or unsupported."
In March 2010 the Solaris 10 download license changed to limit unpaid use

to 90 days.

JAVA ANDROID LAWSUIT

Oracle filed a patent infringement lawsuit against Google over

its use of Java in the Android platform. Android apps run in the Dalvik Java virtual machine. The apps are written in Java but are compiled into Dalvik's custom byte code format which is incompatible with standard Java runtime environments. Google thus avoided licensing fees associated with J2ME, the mobile version of Java. However, aspects of the Dalvik system are very similar to the Java technology patented by Sun and now Oracle.

 The court found that Oracle's primary copyright claim,

based on the Java Application Programming Interface (API), failed because the portions Google reused were not copyrightable. Google was found liable for a small amount of literal code copying. Oracle will be limited to statutory damages for these claims. The jury found that Google did not infringe Oracle's patents. Oracle has said they will appeal.
Regardless of the legal merits, commentators have

questioned the wisdom of the lawsuit over Android, a platform which has reinvigorated the Java community. In addition, it gave another worrying signal to open source community members about Oracle's stewardship of open technology.

STRENGTHS
Coherent brand /portfolio strategy: oracle presents a impressive and very advanced strategy compared with its current competition. The focus on IT business alignment and business value should resonate very well with CxOs on each side of the fence. Oracle is

positioned o potientiallybecome the 5th major player in the IT management software market. value chain and market alignment: strong product suit for applications and DBMS management that plays to oracles market strength as a company. Impressive customers support strategy. Stability: very experienced IT management software management group. Strong, charismatic, and motivated leader in Larry Ellison. World leader in supplier of software for information management. Offer consulting, education and support services for its customers. Strong sales distribution channels both domestically and internationally. Experience and knowledge in the areas of data storage, business applications and emarketing. Strong balance sheet and financial position with both cash and assets, little long term dept. No union employees, little chance of work stoppage, and good employee relations

WEAKNESS
As impressive as oracles is in terms of innovation and thinking, it

needs to advertise it more and use it to leverage client interest in current solutions. Larry Ellison has a no holds barred attitude which alienates people and can be control freak. Less control over some international operations than domestic because of reliance of partnerships and alliances instead of direct involvement. In 1997 oracle was having problems with its application business. Ellison found that different departments of the company used different products and that information sharing and exchange was difficult. set out to offer a standardized suit of products to seamlessly integrate all aspects of operations.

OPPORTUNITIES
Market attributes:

Endless new growth markets for using operating systems Retail stores to showcase products better Open source software On demand software Market dynamics: business value is identified as a key market driver for oracles strategy. Oracle has a unique position in the application and data base world that strongly supports the growth in current portfolio sales. Oracle is focusing on the next wave of IT management solutions that will emphasis the capabilities to manage the business services life cycle rather than being limited to IT production management. Client perception and adoption: high customers satisfaction, on par with other oracle products

THREATS
Markets attributes:

Competitions mergers and acquisitions Privacy Copy right infringement Market dynamic: oracles vision will appeals only to the most mature enterprises in the next 12 to 36 months. Competitive position: the competition to the current portfolio seems to weaken; although oracles future competition is focused on BSM , its message may still evolve towards more business centricity within the next 24 months

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