McNealy steps down at Sun

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Oracle Buyout

You obviously got the main point.
SUN under Scott and now Jonathan have excelled in making the HW and OS "bedrock infrastructure" that enable others to run useful stuff and underpin the NET.

Oracle has excelled at making the bits that deliver information and services to end users and clients.

Both are running against strong rivals in their respective "spaces" and have taken an integrated offering strategy: Oracle buying all the major enterprises SUITES it can under the sky; SUN persisting in building and innovating an integrated Network / computing stack.

Oracle can expand upstream and downstream along its value chain. Upstream by morphing into more services as a vendor enabling others to use its database and suites to build EDS-type businesses that run IT, computing and say accounting for hire. Eventually Oracle must also be its own client by buying and repackaging its products for sale to others as a service. Expanding Downstream as a defensive measure can only mean one thing ?moving into the OS, HW and ?bedrock infrastructure ? space inhabited by the likes of Sun and IBM. Remember who was most vocal in pushing for the net- appliance in days gone by? None other than Ellison! The time was not right then , it could be in the near future for a limited,cheap, network- only commodity appliance where services (IT,accounting, etc) can be streamed in from a vendor site.

SUN likewise can move upstream and down stream. Downstream is probably out ?no need to get into actual chip making and production as Fab units cost a bomb. Going upstream means buying the things that run on its HW and OS to design and extract more value added. Who sits on top of that space? The likes of IBM and Oracle with heavyweight databases and enterprise or e-commerce applications.

Somewhere in the middle the two must butt heads as they move upwards (for Sun) and downwards (for Oracle-as it secures more tech to underpin and upgrade its database and enterpreise suites.) Sun is also reaching well beyond these two with its open office initiative aiming directly at end users.

SUN and Oracle need tighter cooperation, whether they like it or not. Oracle already makes Solaris its app development environment of choice while still supporting all industry standards. For servers it appears to tell all the major HW vendors the same thing ?DELL, HP, IBM, SUN that each is respectively its HW platform-of- choice.
This fiction cannot last for long and needs to be resolved.

More shakeouts lie ahead in the industry, and Jonathan can choose to shake things up or be shaken.

Posted by: mbs_accolade@...   Posted on: 05/22/06 You are currently: a Guest | Members login | Terms of Use

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