Monday, April 20, 2009

Oracle says that it buys Sun for Solaris and HW

I don't buy it for a second. IBM's exclusive to look at Sun's books expired only two weeks ago. Oracle can not have done a proper due diligence. Oracle says that it is buying Sun for the HW business and Solaris. They barely mention MySQL.

The vast majority of Oracle's software revenues come from it's database. $3B out of $4.4. Of the remaining $1B in revenues, $758M come from consulting services. This probably has to do with it's database.

Oracle paid $5.6B for Sun. It made $11.64B last year in database revenue. It is projected to make $13.35B this year. If it could increase it's database revenue by 50%, it could pay for Sun in 1 yr.

MySQL is the most popular database for new startups. Facebook has 1800 MySQL servers and zero Oracle servers. I remember asking an Oracle employee if Oracle was concerned about having approximately zero market share among the hot new companies.

This is very smart. They have to say that they want to sell HW. That battle is lost. Oracle will sell Sparc to Fujitsu or shut it down as soon as it is not embarrassing.

Oracle will not kill MySQL. It will just neglect it. If it gets any further revenue from Solaris, Java, etc. That is just a bonus

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