Tuesday, April 21, 2009

Key to Oracle-Sun Deal: Storage, DB Hardware

1) Enterprise software giant Oracle has decided it wants to get into the storage and database hardware business, where there is plenty of room for growth, and it believes Sun is the right horse to ride at this time.2) Sun has deep and prosperous relationships with customers in the high-performance computing, telecommunications and government sectors that Oracle can now mine for more business.3) The price was right. Oracle won't have to finance much, if anything. The transaction actually nets out to about $5.6 billion after Sun's liquid assets (an estimated $1.8 billion) are taken into consideration; Oracle has $8.2 billion of its own in cash and cash equivalents.
Key to Oracle-Sun Deal: Storage, DB Hardware
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