Oracle Corporation is all set to take over and address the money-losing concerns that Sun Microsystems is experiencing. The company predicted that it will obtain full and unconditional clearance from the European Commission to take over Sun with the deal expected to close in January, says Oracle President Safra Catz during the company’s earning’s call.
Larry Ellison, Oracle Chief Executive, has also outlined a few ways through which Sun’s fortune can be improved by his company. He hinted at Sun’s potential exiting or de-emphasizing industry standard business which develops servers around commodity chips.
Ellison said that his team is inclined to believe that the low-margin and high-volume business is lucrative enough so long as the high volume is maintained. This is something that Dell and HP specializes in so Oracle will have to avoid such niche.
Under the management of Oracle, Sun will work on its high-margin, and high-performance but low-volume business arm. Ellison particularly highlighted on the joint efforts of both companies in developing the Exadata machine. This is a server that is dedicated to running the Oracle database significantly faster than other servers.
Ellison told analysts that his company believes that Exadata and its related businesses will be huge this year. It is expected to rake in billions of dollars in new system sales excluding maintenance fees for those managed hosting systems. All that remains to be seen is how long it will take for Oracle to achieve that goal.
Oracle will still require new growth. It will have to rely on Sun for selling more database software with Exadata providing clients with a competitive edge against their rivals.
