April 23, 2009

Ten ways Oracle could make money from Sun

"Consolidation" will be the watchword as Oracle absorbs Sun Microsystems, but it shouldn't ignore the plum technologies in Sun's portfolio

Not many of you agreed with me two weeks ago, when I predicted that Oracle would be the one to snap up Sun Microsystems following the breakdown of talks with IBM. But as it turns out, Larry Ellison did -- and he was the only one that really mattered.

What has us all buzzing now, of course, is what will happen next. The Oracle acquisition of Sun is definitely an event that will reshape the industry. In the short term, however, Oracle claims it can wring $1.5 billion in profit from Sun this year and $2 billion the next. I don't know how it plans to do that, but since Larry took my advice earlier, I thought maybe he'd like to consider these suggestions, post-merger:

[ Neil McAllister foresaw Oracle's Sun takeover; find out why he thought the deal would make sense. | For full coverage of the Oracle-Sun deal, see InfoWorld's special report. ]

10. Unify your identity management products. The identity management market is crowded, with few stand-out offerings. LDAP servers are a dime a dozen. Thinning this herd will make it easier to acquire customers and market aggressively against the real threat in this space: Microsoft, which is developing an identity management platform based on Active Directory. Cherry-pick the best from your existing technology and Sun's stack, discard redundant efforts, and forge a strong leadership role while you still can.

9. Consolidate global development teams. Everyone hates it when American tech companies move development jobs overseas. Doubtless more heads will roll as a result of Oracle's Sun acquisition, but at least some of them won't be on these shores. While Sun maintains development facilities in India, China, and elsewhere, Oracle is an acknowledged master of offshoring. By redeploying its existing overseas staff, Oracle can create efficiencies in Sun's software divisions that Sun couldn't have managed on its own.

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Gray_Hair 24-Apr-09 8:22am
Item 6 is just a pre-hash of your item 1, combine the two. Item Six should have been: Never forget the Classic Sun Tag-Line, "The Network IS the Computer." Begin the process of recasting ALL Oracle products as mix-and-match-plug-and-play-bullet-proof services accessible on networks with "connectors" for ALL proprietary SOA architectures. Using, of course the SUN software legacy...
sunray guy 24-Apr-09 4:47pm
You've totally overlooked, like everybody else, the "sleeper" product in Sun's mix: Sun Ray Ultra Thin Client. Spin the dial back a couple of decades and review Larry's idea of a "network computer". Now you can argue that maybe he and Scooter had a couple to many and stole each other's tag line, but nonetheless, Larry preached the sermon for a while but never really got it to work. Fast-forward back to realtime. Look at Sun Ray seriously: no local OS; no local apps; no local data; smartcard access builtin; only 4 watts power; 200,000 hours MTBF; everything else in the data center, or maybe the cloud in today's terminology. Sound familiar, Larry? Why don't you jump in the Lamborghini and take a ride up the street to Scooter's place and check it out! I'm just sayin'
sunray guy 24-Apr-09 4:50pm
Shoot, I missed it. Take Gray_Hair's suggestion and then slide mine in at #6!

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